Real estate sector has in the recent years had a rapid exponential growth across different states, which has in turn contributed to the gross domestic product over time.
This growth is credited to the following factors;
- Infrastructural developments like development of roads, social amenities connections like water and electricity and airports development.
- Stable GDP growth spark growth real estates
- Demographics trends, with increasing number in populations, there has been a high demand for real estate properties among the middle class populations. many countries have experienced high rate of urban migration as compared to the past years.
Above factors have contributed significantly to the current trends observed in the real estate sector. Let’s see the new trends that is taking shape in the real estate sector.
- a) Office
Previously, the demand for office spaces was on the rise, this is accredited to the general growth of GDP as expansion of companies both regionally and internationally is growing.
However, with outbreak of COVID 19, office occupancy has been reducing because most employee has shifted to working from home rendering the properties redundant. As long as the virus is still existing, then this trend is expected to continue.
The consumer preference has shifted from the old school modern to the world class spaces. With efforts to quench the demand, developers have shifted their focus to the modern designs that serviced and guarantees safety of employee.
- b) Retail
Retail sector has experience has major changes due to development for malls. There have been developments of malls in outskirts of major cities which has led to the entry of international brands into local market.
With increasing number of population, demand for affordable houses have increase in the recent past.
The demand for single and duplex properties in the suburb areas has risen in the recent past especially with the outbreak of COVID 19 pandemic.
Land developers have in the recent past developed plots for sale in major cities, with intend to solve plots to the middle class population.
The hospitality industry depends largely on the performance of tourism which has in the recent months reduced due to travel restrictions. Most property owners have started rebranding their hotels to meet the short term rental requirements.
They have converted to become services apartments and hotel, other have totally collapsed. Many companies have shifted to listing their properties in Airbnb as a way of generating short term gains.
With development of infrastructure and continuous growth of human population, has let to high demand of land. Many people have speculated that the prices will go up in near future,thus purchased the land basically for speculation.
Some bank on the land as they wait for the prices to appreciate. Other property developers, buy large parcel of land, develop and then partition and then sell the plots to potential buyers.
In conclusion, the real estate sector is still expected to grow in the long term due to the continuous growth of GDP across different nations.