Posted inOpinion

Top real estate trends of 2024

Mohit Puri, managing partner, Money Plant Real Estate, unpacks key trends impacting investor strategies, including the growing influence of family offices, the rise of alternative property sectors like student housing, and the transformative role of technology

Top real estate trends of 2024

The real estate market is evolving, with trends like Artificial Intelligence (AI) and luxury homes gaining popularity. Investors are now looking for properties that offer more than just a place to live; they want investments that provide long-term benefits and amenities. Hence, in this article, we share some of the hottest real estate trends shaping the real estate segment in 2024.

Family offices have become increasingly important, especially for high-net-worth individuals and families. Private wealth management firms are now focusing on alternative investments, with real estate being a prime target. Family offices often have a long-term investment horizon, allowing them to focus on value-add strategies and complex projects that may not attract traditional institutional investors.

The luxury real estate market too is experiencing increased interest from billionaires worldwide. Buyers are no longer just interested in traditional properties, instead, they are seeking unique experiences and amenities. Homes with wellness features like gyms, spas, and meditation spaces are in high demand. Additionally, smart home technology integration and eco-friendly constru ction are becoming more important for luxury buyers.

The influence of cryptocurrency on real estate is also growing. While direct purchases of property with cryptocurrency are rare due to regulatory challenges, innovative solutions are emerging. The tokenisation of real estate allows for fractional ownership, potentially making the market more accessible to smaller investors. Some companies are also exploring the use of cryptocurrencies for rent payments, which could streamline the process and attract a wider pool of tenants.

Investors are also looking beyond traditional sectors like residential and commercial properties. Alternative sectors with strong growth potential, such as student housing and senior living facilities, are gaining interest. The rising cost of college education is driving investment in student housing while ageing demographics are fuelling demand for senior housing facilities and retirement communities.

Technology is another element transforming the real estate industry. Virtual tours and 3D imaging allow for remote property viewings, expanding the reach of investors. Big data analytics are empowering investors to make data-driven decisions, identifying undervalued assets and emerging markets.

The real estate market is undergoing a dynamic shift. While traditional sectors remain relevant, investors are increasingly drawn to alternative options like student housing and senior living. Technology is further disrupting the landscape, with virtual tours and data analytics empowering informed decisions.  Luxury properties are no longer just about location; they cater to a desire for unique experiences and prioritise wellness features and eco-friendly design. The rise of cryptocurrencies presents intriguing possibilities for fractional ownership and rent payments.

As the market evolves, one thing remains constant: the demand for well-considered investments that offer long-term value and cater to the evolving needs of residents and investors alike. Understanding these trends is crucial for investors looking to succeed in the dynamic real estate market. It is important to stay informed and adapt to new trends to get what’s best in the market.