And the forecast is: 4 real estate investment trends in 2019 What will the real estate investment market look like next year…
Original publication date on the United States Real Estate Forum on Facebook:
2019-02-05T09:42:58+0000
And the outlook is: 4 real estate investment trends in 2019
What will the real estate investment market look like for us next year? What areas and sectors will gain momentum in 2019? Get the Real Estate Trends Guide
Bashmat Biderman, content manager
1. Multifamily (housing clusters)
The multifamily is a rental apartment complex that is common across the United States, which includes single-family buildings to complexes with more than 1,000 housing units. The multifamily complexes are "all-inclusive", known for their well-being and often include a swimming pool, dog park, bicycle and walking paths, indoor parking, a boarding club, meeting rooms, a gym and more. All of this, plus round-the-clock maintenance.
Gili: “Over the past five years, the Multifamily has become a sought-after investment, thanks to being a residential rental property that combines the benefits of a real estate asset with those of a business that enjoys relatively rigid demand. In some places in the United States, multifamily occupancy rates are at 90% and above, and their pace of construction is increasing. This trend is also expected to continue in 2019, and I predict that in the strongest areas of the multifamily - Georgia, Florida, North Carolina and South Carolina - demand for apartments will continue to rise. At the end of the day, despite many construction starts, there is still a huge shortage of good assets across the US. ”
Experience fulfilling dozens of investments in multifamily complexes in the US: Houston, Atlanta, Dallas-Fort Worth and more. One of the investments in the new Fulfillment Investment Fund - CoFund X, is in Multifamily - an initiative to build a multifamily property in Schaumburg, a suburb of Chicago, Illinois.
2. Micro-Units and collaborative housing
Two sectors that appeal to young people who want to live in major city centers, but still want to keep prices fairly sane. This is a trend that has come back in recent years, due to employees' desire to live near their workplace, and is happening at the same time to improve their sense of security in cities and their cleanliness. The Micro-Units or (Micro-Housing) are small housing units of about 40-25 square meters, and the collaborative housing is a kind of residential WeWork. They both provide a population segment that works and makes a good living, and that it is important to live in the heart of the matter.
Gili: “I expect these two types of accommodation to continue to gain momentum in 2019. The cooperative housing can now be seen mainly in San Francisco, which has many young people with money who want to live downtown, but cannot afford to rent an apartment alone; And in the trendy neighborhoods in Brooklyn. ”
Two Micro-Units projects are being implemented in Portland, Oregon, one of the most sought-after cities in the United States that attracts a young population because of its location between San Francisco and Seattle. While the regular rental market in Portland is already exhausted and prices are very high, Micro-Units is providing a relatively new population segment.
3. Assisted living
As a result of the increase in life expectancy, today's 55 plus children are much more active, and after the children have left the nest, they are looking to live close to their peers, who have similar lifestyles and interests. The new housing complexes designed for them are specially designed and offer quality of life in the form of a yoga studio, a coffee shop, cooking workshops, beauty parlor, wine tours and other services.
Gili: “There is a growing demand for sheltered housing complexes that offer a variety of options - from independent living to a specific age group, through housing that provides reduced-level medical care and fully sheltered housing. Due to demand, many entrepreneurs in the United States are turning to this area, and those who manage to succeed in the arduous licensing processes are also working by converting existing residential complexes into sheltered housing complexes, and also by establishing new housing complexes. Tenants are willing to pay more in exchange for a better quality of life, with recreational activities and ongoing concern for all household chores. ”
To implement two projects in the field of assisted living. The first is located in Lafayette, Louisiana, including 174 housing units, and is in the final stages of construction. The second complex will be built in Petersfield, UK, and will include residential units 70.
4. Student residence
The growing number of students in the United States, combined with the limited number of dormitories, is causing high demand for student housing in high-end universities and colleges. These residences provide students with a housing solution that is a cross between student dormitories and rented apartments - even for those who did not find vacancy in the dorms, and for those who are looking for a higher level of housing.
Gili: “If students used to live in dormitories that are typically academic institutions, which were often characterized by relatively low standards, today, some of the university experience also includes a high standard of living in a pampering environment tailored to student needs. It is important to note that beyond the fact that student residences are in high demand, their demand is constant, because there have always been and always will be students looking for a place to stay near the university. In addition, it is also a different rental model: these are buildings designed to accommodate several tenants in one room or a condominium, a figure that increases the profit obtained compared to standard rent. "
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