The real estate industry has not been one to lack challenges, success and fundamental changes in the last couple of years. Specialists in the industry have already started doing their research and making predictions for 2017. Let’s discover together five trends that will play a significant role in commercial real estate next year and see how you can use such information to grow your business.
Rising competition in the industry
It looks like 2017 will be the year when a serious shift from real estate businesses developed by families will turn into institutional world class businesses that everyone will want to be part of soon. Therefore, the main trend that will play a significant role in this industry will be the rising competition on all fronts.
New levels of competition always change the way businessmen choose to invest, recruit and fundraise thus come with essential influences in the industry. Moreover, it also brings massive capital influxes influenced by low rate interests and volatility in commercial real estate markets. Increase demand in equity markets will also affect this industry in 2017 and might determine historical levels to be reached in terms of featured prices of commercial properties.
Global economics and political uncertainties will play a significant role
Another serious trend to consider for your 2017 business plans is the way in which global economics and politics will significantly influence the real estate industry. Such factors might blur the outlook of the property industry at the beginning of next year but things will start to become clearer as investors discover more important factors that shape this industry.
In the case of US markets for example, the overall impact on commercial real estate in 2017 is predicted to be a positive one. Why? Because the US assets have become more and more attractive and highly valuable to those who invest at a global level in the property industry. Enhanced inbound foreign investments are predicted for next year in safe property heavens brought to surface by specialists in the industry.
Foreign investments across the globe
Also related to the above-mentioned factors of global economics and political uncertainty is the next important trend to consider if you wish to do business in commercial real estate next year. Foreign investments across the globe are predicted to become the new reality and a shaping factor in the industry.
International capital fowls into the US real estate market as well as across the globe will continue to increase and influence the market. Stable and transparent real estate markets are ready for such changes and the achievement of a real shift to more promising perspectives for investors looking to gain high financial returns next year. Abundant foreign capitals will open new doors for investors and shape the worldwide commercial real estate property by the end of the year.
Interest rates on the rise
Specialists in the real estate industry have also predicted another essential trend for you to consider in 2017: interest rates on the rise. These will shape the market in ways you could not even imagine to be possible right now. Even though rates are currently kept low due to a wide range of essential factors, the predictions for the future say that things will severely change from this perspective in 2017. The current limited inflation as well as the import prices keep interest rates at low levels at the end of this year. However, when such factors are changed next year, the commercial real estate industry will also start to be shaped differently and bring new options on the table for investors looking to grow their business and bring innovation into the industry.
Shaping a kinder, gentler commercial real estate cycle next year
The huge impact of the global financial crisis has been obvious for several years now. However, 2017 predictions seem to focus on the shaping of a kinder, gentler commercial real estate cycle that will allow more options to be considered and which will bring notable changes in the industry. New levels of development will be registered across the globe and the real estate transaction volume will increase in key regions where the market is ready for severe changes. Valuable lessons have been learned given the financial crisis that had to be overcome this year and 2017 is now ready to shift from negative impacts to positive ones for investors looking to place their bets on the commercial real estate industry.
Finally, these are five main trends that will play a significant role in commercial real estate in 2017. It might not be a bad idea for you to start doing business in key regions like Turkey or the US and start increasing your financial revenues with valuable villas for sale.