header photo

Joseph Maharaj

Operations Executive

Three Commercial Real Estate Trends to Watch in 2022

Despite the increased unpredictability and escalating competition in the real estate market, recent developments indicate that the sector has a promising future. For instance, the luxury market is one of the industries with the quickest growth. The rental market for single-family homes is seeing an increase in listings. The percentage of millennial purchasers in the real estate market is expected to reach 55% by 2022.

In the meantime, public transit, higher vaccination rates, and the reopening of college campuses are expected to keep occupancy rates at pre-pandemic levels. Meanwhile, demand for multi-family homes will grow, particularly in inland areas. As more individuals begin families, they will require more room and exercise greater caution when buying a home in the current housing market. There will also be more inland residents than coastal ones.

Although the economy is unclear, there will still be a significant demand for luxury real estate. Luxury real estate will be a popular investment in 2022, thanks to the rising number of millennial purchasers. Older Boomers and Gen X will still rule the selling market, though. In contrast, in 80% of housing markets, residential real estate prices will still trail behind wage growth.

Social media is crucial for real estate, and its relevance is undeniable as millennials become more tech-savvy. To reach a large audience, agents should be active on Facebook, Instagram, and Tiktok. They can provide information that can promote home sales in this way. In addition, the real estate sector has seen growth in both 360-degree films and high-quality photos.

As renters seek more space,, office and retail property values are sluggishly rebounding. Consequently, adaptable tactics will aid the sector's recovery. Investors should also concentrate on industrial assets and multi-family properties. Occupancy rates are anticipated to stay unchanged or slightly higher despite the increased demand for office space. The sector's increased use of technology will also help the property management industry.

The new demographic for home purchases are millennials. As a result, buyers and sellers are affected by the rising homeownership rate. Several fund managers have modified their investment plans in response to market shifts. Even while this is a problem, the change is creating new opportunities.

Investors are paying more attention to outdoor amenities as intelligent houses and apartments become more popular. As a result, homeowners frequently choose rooftops and terraces. As a result, the future of real estate is smart homes. Due to this, owners of multi-family properties must review their marketing plans. They must make their homes appealing to tenants and offer the facilities they seek.

Artificial intelligence will also have an impact on the sector. The real estate sector will significantly benefit from this technology in terms of competitive advantage. Property owners can use this technology to locate the finest facilities management options. The procedure will be made more straightforward as a result for both tenants and landlords. Real estate managers will be able to maximize the performance of their staff members by utilizing AI in property management. Furthermore, sharing information will be simpler because of this technology. Additionally, this tendency will aid in luring fresh tenants.

Those looking to purchase a condo will have excellent purchasing opportunities in the Bay Area. These homes will be in greater demand than they are available. Furthermore, it is anticipated that the prices will continue to be high. As a result, a record number of homes may be sold this year.

The expansion of real estate marketplaces is a further trend that is having an impact on the housing industry. These online markets serve as brokers between vendors and customers. This will develop a new economic sector and fit into the sharing economy. In addition, this technology will enable property owners to market a portion of their properties to clients in multiple cities.

There are 120 million residents in the US at the moment. However, there are only 11% of dwelling units are vacant. As a result, in the second quarter of 2022, the median asking rent will be $1,314. Furthermore, the average listing price of a home in the United States is $416,000, an increase of 781% since 1980. In addition, by 2022, the median price of a home sold in the United States is anticipated to reach $520,000.

Young adults start families quickly, which is likely to drive up real estate costs. Experts predict that, as a result, property prices will increase further in 2022's first half. The lack of available properties will also increase prices in the year's second part. Particularly in the counties around big cities, this is true.

Go Back