Residential property investment has been a popular option for many years and continues to be a major focus for investors around the world. With the rise of real estate prices in recent years, there has been an increased interest in residential properties and the benefits they offer. In this article, we’ll take a look at the latest trends in residential property investment and what investors need to know to make informed decisions.
People are moving from cities to suburbs
The COVID-19 epidemic has accelerated urban to suburban migration. And it appears that the trend of choosing to avoid a major city lifestyle may continue over the next three to five years.
Increased focus on technology
The use of technology in residential property investment has also increased in recent years. Investors are using online platforms to research properties, connect with real estate agents, and make investments. Also, most homes now use highly digital devices like smart locks, smart SD Lifts, cameras and the likes to make their homes more digital and conducive.
In a survey conducted by Rightmove, 90% of UK estate agents reported using technology to improve their operations and increase efficiency. Additionally, technology has also made it easier for both homeowners and investors to manage their properties remotely, helping to increase efficiency and reduce costs.
Rise of real estate crowdfunding
Real estate crowdfunding has become a popular trend in recent years and is expected to continue growing in popularity. This type of investment allows individuals to pool their resources and invest in properties together, reducing the risk associated with individual investments. It also provides access to investment opportunities that may not be available to individual investors, making it an attractive option for those looking to diversify their portfolios.
Focus on sustainable properties
More and more investors are looking for environmentally-friendly investment options. As such, they are leaning towards sustainable properties. For example, a survey conducted by the Royal Institute of Chartered Surveyors (RICS) found that 70% of UK homebuyers reported that energy efficiency is important to them when considering a property purchase. Properties that are energy-efficient, use renewable energy sources, and have a low carbon footprint are in high demand and are expected to continue to grow in popularity in the coming years.
Growing importance of location
The location of property remains one of the most important factors for investors when considering residential property investment. Properties in popular, well-established areas with good infrastructure, a strong local economy, and a growing population are in high demand and are expected to continue to appreciate in value over time.
Conclusion
Residential property investment continues to be a popular investment option, and there are many trends shaping the market. Investors should consider their individual goals and risk tolerance when making investment decisions, and do their research to ensure they are making informed decisions. It’s important to remember that, like all investments, residential property investment carries a degree of risk, but with proper research and planning, it can be a valuable addition to any investment portfolio.
