The dawn of a new year means both existing and prospective investors are on the lookout for investment assets where they can put their money and get good returns.
Real estate presents great investment opportunities, especially for savvy investors who are looking for valuable assets to invest in and are ready to endure long investment cycles.
Real estate is generally seen as a complex investment asset class that demands a good understanding of its intricacies along with evolving trends that help “savvy investors” make informed investment decisions.
For this reason, experts have identified five major trends that will have a significant influence on the real estate sector all through 2024. These trends would make you scale your real estate investment portfolio if you gave them attention.
Tech integration redefines property development:
If there is any major disruption in the real estate sector today, technology is gaining traction in asset production and transactions. It is increasingly becoming a driving force in the sector.
Most developers are now into smart home development, which is driven 100 percent by technology.
Olajide Faremi of the Department of Building, University of Lagos, noted at a real estate conference recently that technology has become a major tool for mass housing.
It is expected that, in 2024, there will be a surge in smart home technologies, sustainable building practices, and the integration of artificial intelligence (AI) in property development. Investors in real estate will need to embrace these innovations to enhance the appeal and efficiency of their properties, meeting the growing demand for sustainable and tech-savvy living spaces.
Rental market evolution:
The rental market dynamics are evolving, driven in part by changing demographics and lifestyle preferences. Short-term rentals, co-living arrangements, and furnished apartments are gaining popularity.
Assetrise advises that investors should consider diversifying their portfolios to meet the demand for flexible and unconventional rental options and transactional real estate investment. Following the 2024 Fair Market Rental Report, nearly 99 percent of all areas will see an increase in fair market rents in the full year 2024, with an average increase of ten percent over the prior year.
Agro Real Estate Investment:
Agro real estate is a growing trend in the real estate industry, with more investors and developers turning their attention to agricultural properties. This trend is driven by the increasing demand for food and the potential for high returns on investment in the agricultural sector. Agro real estate offers opportunities for sustainable farming practices, land development, and agribusiness ventures.
Investing in agro real estate can provide diversification for real estate portfolios and offer long-term growth potential. With the global population expected to reach 9 billion by 2050, the demand for agricultural products and land is projected to increase, making agro real estate a promising investment opportunity.
The rise of co-living and flexible spaces:
According to Entrepreneur, a growing millennial workforce and a desire for collaborative environments are driving a trend toward co-living spaces and flexible work arrangements. The real estate market is also adjusting to this paradigm shift in how people live and work.
MKO Balogun, Group CEO of Global PFI, agrees, disclosing that demand is very high now for small family units as well as large apartments where people co-live and share facilities. According to him, “About 60 percent of people looking for homes in Lagos are looking for small apartments to buy or rent.” In 2024, investors should consider investing in properties that cater to this demand.
Sustainable Property Development:
In real estate, environmental sustainability is no longer a buzzword but a fundamental consideration. In 2024, analysts expect a heightened focus on green building practices, energy efficiency, and eco-friendly development. Investors and developers who prioritize sustainability not only contribute to environmental conservation but also align themselves with the preferences of an increasingly eco-conscious market. The whole world, they say, is going green, and developers are doing the same.
One of the key trends in the Nigerian real estate market is the increasing popularity of gated communities and luxury estates. These developments offer security, modern amenities, and a higher standard of living, which appeals to the growing middle class and expatriate population. There is also the rise of mixed-use developments, which combine residential, commercial, and recreational spaces in one complex. These developments cater to the demand for convenience and accessibility.
Ruth Obih, CEO of 3Invest Limited, mentioned in his report to Business Day that sustainability is the new normal, noting that before now, the primary concern of investors had been the level of returns provided by an investment, with doubts on how those returns had been generated.
2024 is a year of consolidation for Assetrise Limited. We are set to develop all our estates from the current positioning to premium packages. This will attract high appreciation and bring joy to our investors and partners.
We are also unveiling mega projects, such as our housing estate projects and apartments.
The latest real estate market trend report paints a clear picture of a competitive and dynamic housing market. With low inventory and high demand, sellers are in a strong position to command top dollar for their properties. However, buyers may face challenges in finding affordable homes and should be prepared to act quickly when the right opportunity arises.
Investors should therefore keep an eye on emerging trends and consider diversifying their portfolios to capitalize on potential opportunities. Overall, the market is showing signs of resilience and continued growth, making it an exciting time for those involved in real estate.
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