Profitable Real Estate of the Future
The real estate developer and investor, Richard Josephberg has shared with us the future profitable real estate. According to him, investing in warehouses, micro-apartments, co-working, and nursing homes is the most profitable future trend.
According to Josephberg, is the most important social challenge that will affect the real estate market in the near future is housing affordability. Micro-apartments are one of the ways to tackle it in large cities. These are inexpensive apartments due to their small floor area of 17-35 m2.
These micro-apartments are usually bought by investors for renting them out to students, business travelers, young professionals, and tourists. The growing number of one-person households and students also contribute to the popularity of this type of real estate.
According to a number of researches made by Josephberg, logistic real estate was on the top of the list of the most promising types of commercial properties.
An aggressive increase of prices and lower yields are noted by investors. However, the demand does not decrease, because of the extreme shortage of supply in the market.
Warehouses on the outskirts of cities within the so-called ‘last mile’ have a particularly positive forecast: Goods ordered online will be stored there, before these get delivered to customers.
Co-working spaces are a new growing trend in the real estate market. This trend features real estate as a service and tenants as customers. As the share of co-working, small companies, business incubators are growing, the demand for co-working spaces is also growing. The requirements to flexibility of space, ability to divide it are becoming increasingly important.
The number of people over 60 is growing and it is expected that by 2050 to grow to 2.1 billion and by 2100 to 3.1 billion. Also, according to Josephberg's articles on Medium, the fertility rate is declining at the same time.
So, the need for nursing homes and healthcare complexes is increasing significantly. This type of real estate will benefit the most from these demographic changes.
Micro-apartments
According to Josephberg, is the most important social challenge that will affect the real estate market in the near future is housing affordability. Micro-apartments are one of the ways to tackle it in large cities. These are inexpensive apartments due to their small floor area of 17-35 m2.
These micro-apartments are usually bought by investors for renting them out to students, business travelers, young professionals, and tourists. The growing number of one-person households and students also contribute to the popularity of this type of real estate.
Logistics real estate
According to a number of researches made by Josephberg, logistic real estate was on the top of the list of the most promising types of commercial properties.
An aggressive increase of prices and lower yields are noted by investors. However, the demand does not decrease, because of the extreme shortage of supply in the market.
Warehouses on the outskirts of cities within the so-called ‘last mile’ have a particularly positive forecast: Goods ordered online will be stored there, before these get delivered to customers.
Co-working spaces
Co-working spaces are a new growing trend in the real estate market. This trend features real estate as a service and tenants as customers. As the share of co-working, small companies, business incubators are growing, the demand for co-working spaces is also growing. The requirements to flexibility of space, ability to divide it are becoming increasingly important.
Nursing homes
The number of people over 60 is growing and it is expected that by 2050 to grow to 2.1 billion and by 2100 to 3.1 billion. Also, according to Josephberg's articles on Medium, the fertility rate is declining at the same time.
So, the need for nursing homes and healthcare complexes is increasing significantly. This type of real estate will benefit the most from these demographic changes.
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