An opportunity or a wild gamble?

This is what 2022 will look like in the global real estate market

Uncertainty continued to accompany the global real estate market in 2021. Where were the largest increases recorded and what are the salient trends for 2022 and which country is at the top of the targets with the highest potential for growth

Nearby Nir, guest column

11/01/2022

Tuesday, 11 January 2022, 09:02 Updated: 10:11

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Against the background of the epidemic entering its second year, it continued to accompany the global real estate market with uncertainty and a high level of volatility. The United States, the United Kingdom, followed by Japan and in fourth place this year are Germany, which has taken the place of China as the top most sought-after countries for investment.

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Houston, Texas (Photo: ShutterStock)

Looking ahead, we identify three significant avenues and trends in real estate investments that can be estimated to gain momentum in 2022 as well.

• A. Growth and Demand for Residential and Multi-Family Properties -

  House prices in 2021 made a historic jump of 7.9% (this is actually the biggest jump in the market since 1987). In a year when remote work has become a matter of routine, investments in areas where tenants have received advanced transport infrastructure, large shopping centers and of course broadband and advanced access to Internet services - have become sought-after investment destinations. There has also been an increase in investment demand for states where there are options for purchasing particularly large residential areas such as the state of Texas, which is a leader in investment with an emphasis on Houston as well as states such as Tennessee, Ohio, Florida and South Carolina. In Europe, the top investment targets are Luxembourg, with a 9.6% increase in investment along with the rest of the European countries that traditionally lead the list of investment targets, led by Germany, the United Kingdom and France.

• B. Impact of Real Estate Investments -

  Under the climate crisis, the industry experienced a 15% increase in investments in more environmentally friendly properties and was dubbed "Impact Investments". There is housing and a reduction in gas emissions. Thus, during 2021, 40 billion worth of transactions were made in impact investments. This trend is also reflected in the way investors market their investments today and market on their banner the nature of the investment and its impact on the world.

• third.

  Acceleration of Logistics Centers -

  The year 2021 also marked an influx of capital - mainly from foreign real estate funds - towards logistics centers. It is estimated that investments in US logistics centers in the past year were worth over $ 50 billion.

  Particularly attractive were investments in places with transportation access to ports and the sea for example in investments in California and Pennsylvania.

Rash in multi-family complexes (Photo: ShutterStock)

Removal of barriers

The process of getting cash loans that used to take several weeks today through the use of fintech technologies allows you to get cash loans within a few days

Another factor that has influenced the accelerated growth of the market by 5.8% is the entry of new players through fintech technology that allows entrepreneurs a door to invest in places in the world that were previously out of their reach. In the new age where transactions and people work remotely, the method of transferring payments manually is no longer relevant - technology enables money transfers and global conversions - thus making investments accessible in almost any local currency at any time of day and without geographical boundaries and relatively little regulation. Globalism.

Our numbers indicate receipt of 50% of investors' payments earlier following the use of the system thus enabling cash flow and receiving discounts on earlier payment to suppliers and savings of hundreds of dollars per year. In addition, 58% of our entrepreneurs indicate an improvement in the relationship between them and the investors, thus increasing the volume of joint investments.

There is also a significant improvement in approval times and speed and receipt of global funds digitally and not manually which sometimes the whole process takes several weeks and today is done within 48 hours if not faster.

The move to digital offers attractive rates and very significant savings from the price offered today by the banks. In addition, the process of obtaining cash loans that previously took several weeks today through the use of fintech technologies allows you to receive cash loans within a few days.

To sum up: think positive

Nearby Nir (Photo: Yachz)

We anticipate that although the end of the corona plague is not in sight, the market will continue in the positive trend.

This will also contribute to the entry of new opportunities, especially technological changes and fintech companies that already operate in the real estate market, which is considered to be pursuing parallel financial areas such as the insurance industry. The World's Progress in Investment Sharing Opening Opportunities to a Global Financial Village

Today, making unique data-based smart decisions and important insights is becoming more critical than ever so that everyone involved in the deal can make more transparent, profitable and efficient

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