- June 5, 2019
- Real Estate
2019’s real estate trends are about navigating uncertainty. As rapid social and technological changes transform how we live and work, the pressure is increasingly mounting on the real estate sector to respond with fresh ideas by stimulating digital transformations, finding proper solutions to affordability and being creative with deal strategy. Those embracing innovation may be in a position to take advantage of this constantly shifting environment. Fig Tree Capital Ventures is a market leader in providing real estate investment opportunities with lucrative potential in the US market. At Fig Tree Capital Ventures, we believe that the following innovations and broad trends will shape the real estate industry in the year ahead. Read on.
1. Artificial intelligence
As tech startups begin to integrate AI into their market analysis, the hype about AI’s game-changing potential may begin to manifest in the real estate sector. Perhaps the most immediate use of machine language and similar emerging technologies are in the organization, building management and design. ‘Smart’ buildings are beginning to reap the fruits of analyzing consumer behavior that enables them to refine their offering, create a seamless feedback loop and improve their spaces’ layout. AI may revolutionize property security and access as well as building safety and efficiency.
2. Technology industry investments
The real estate industry represents roughly 13 percent of the US GDP, which is potentially a big prize for those eying the opportunity. Startups, services, and tech firms will make increased inroads to capture and consolidate the largely fragmented market. Tech investors and venture capitalists have responded in kind as they scramble for opportunities in building and construction. Also, home selling platforms keep popping up in a quest to disrupt the conventional transaction system.
3. Amenity creep and the apartment arms race
Evidently, the competitive housing market is pushing builders and apartment landlords to an arms race for new amenities. Rooftop access and fancy gyms no longer work the magic. Recent significant multi-family developments include communal gardens, movie theatres, co-working spaces, and dog runs. These transformations are not only presenting unique challenges to landlords and builders but service firms as well, as they rise to challenges in providing benefits like laundry services.
4. A renewed sustainability focus
Recent serious reports on climate change are calling for a renewed focus on sustainability in the building and construction industry. More investors and building managers are set to adopt a range of green practices and make them the core of their businesses as calls to limit emissions and curb environmental impact mounts. While the real estate industry has been proactive in sustainability over the past couple of years, the industry will likely move further in advancing sustainability performance.
5. Transformation of retail
The hyped narrative about the retail apocalypse is merely an overstatement of the current situation- there’s more of culling of the heard rather than extinction. The shrinking American retail footprint and the rise in Omni-channel retail mean investors need to focus on efficient use of space and seek better brick and mortar presence.
6. Retail transforming into a new equilibrium
The much-hyped retail apocalypse narrative is an overstatement of the current retail situation: it’s not extinction, but more culling of the herd. The rise of omnichannel retail and the shrinking size of America’s retail footprint (a response to e-commerce and just-in-time delivery) means commercial developers and investors need to support more efficient uses of space, and see how everyone, from small firms to big box stores, is seeking out a better, brick-and-mortar presence. We’re also in an era where services are overshadowing merchandising while new kinds of tenants such as health and fitness providers, and urgent care medical facilities continue to emerge. Leases are also being written differently; the conventional long-term agreements are –paving the way for short-term deals including pop-up leases.
As the evolution of the building and construction industry gathers pace, we expect to see a major transformation in demand, and ultimately a fundamental change in the supply side. To avoid being overtaken by the speed and significance of the change, you need to keep abreast on new opportunities in the real estate industry. Fig Tree Capital ventures offer lucrative real estate opportunities to investment partners in Texas. If you’re looking for rewarding real estate projects in the US, do not hesitate to talk to us. You can simply fill our contact form or simply call (866) 300-2170.