The ups and downs of the real estate market not only affect the capital cities and business centers of the world but they largely affect the general economy. In saying so, the commercial property forecast has shed a light on the current ongoing trends of the property market and it’s ascertaining future. While several factors contribute to the boost of the real estate market, what has determined its progress largely is the global economy. According to estate experts here are some of the factors that have contributed to its expansion and others which are standpoints of concern.
- The length of expansion of the sector is larger than the strength of its expansion. What potential commercial property buyers are looking for at this moment are Class A spaces in downtown areas which are not too many. These provide cheaper rent options and are sought out in doubles since they are efficient storage options for industries. While this allows low level construction of office spaces it also denotes an increase in the landlord’s occupancy and rent rates.
- The demand for industrial spaces is on a rise. Industrial areas are the fastest in the construction element and fundamentally the first ones to provide access to the new and upcoming projects in the market. This trait determines that vacancy rates won’t fall too far nor will the rents rise to a great extent. Increased volume of rented space will provide a larger efficiency to the landlord’s but will be difficult on owners of one or two properties who have to compete with multiple property owners.
- On the other hand retail space is experiencing a downfall of an overall 2 percent in the market. There are a lot of office spaces non-hired due to increase in property rates as a result of inflation. While on the other hand, the owners of the commercial properties enjoy almost a bare minimum of mortgage, new owners risk high mortgage rates due to high property pricing.
- Investors are strong in the market. They are looking forward to property investment opportunities but aren’t provided with the adequate ones due to a hike in the prices. There is a possibility to lose out on the investor’s ratio due to the impending recession which is foreseen in the near future of business. Safe deals would include light deals and not heavy investments, but yet the economic turn is more on the downside than the upside of the market standings.
- For the contractors who are desperate to construct new projects the way lies in focusing on multi-family dimensional residencies. This year has been all about commercial properties and single family residential complexes but the future for the construction companies lies in creating multi-family residences.
- The highest economic risk for the market is the probability of a recession. This would generate largely if the European economy crashes which has been experiencing a light recession in the last two years. The crash could lead to a downfall even in the American economy which is the largest country for the real estate market.
The best investment properties are the premium offices in Mumbai, the luxury commercial spaces in Beijing which have infused architecture and style in the work zone and also the master glass complexes in the U.S.A and London which are the primary trade and business landmarks of the world. The estate forecast serves as reminder as well as warning as to what can be expected in the coming year along with the possibilities and opportunities on offer. Most investors take this seriously and plan their investments accordingly.
Bio: Jack Dawson is a commercial estate agent in Delhi, India. He is also a marketing analyst and has studied the possible future outcomes for the real estate industry. In India he bids on the premium offices in Mumbai as the best spots for commercial property investment. Also he writes for http://onebkc.com/
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