Those with hefty real estate portfolios have seen their investments go up and down, but what can we expect at the end of 2024 and into 2025? We have seen interest rates increase again over the past couple of years, which means it costs more to borrow money needed to invest in real estate. We have seen the federal government put a pause on rate hikes, but does that mean that investors will be swarming the market looking for valuable real estate properties?
What is the Real Estate Outlook for 2024 and Beyond?
In 2023, real estate investments were low because of increased interest rates and little investment capital. Coming out of the pandemic, fewer people were ready to go back to brick-and-mortar offices, which led to many empty office spaces.
According to an article from June 2024 in U.S. News, the outlook for 2024 continues to be optimistic. We have seen home prices get down to more realistic rates and experienced a decrease in inflation, combined with the pause in interest rates, which have made real estate investments profitable. The article states that the best investment strategies for the remainder of 2024 and into 2025 are:
- Real estate investment trusts (also referred to as REITs). These are showing promise as most feel that REITs’ financial portfolio can weather the real estate market.
- Multifamily homes. Our population continues to increase, so the need for housing will always be a worthwhile investment.
- Green properties. More of the public, including business owners are concerned about reducing their carbon footprint, and using the latest technologies in building to create environmentally friendly buildings.
Fidelity.com adds even more good investment options for those looking to add to their real estate portfolio.
- Shopping centers had been considered the primary resource for shopping and luxury items, but today, shopping centers (or malls) are coming into favor again. They are no longer just considered a venue for buying high-end luxury items, but a place to go to for everyday needs. Those that include drug stores, grocery stores, and places to meet (such as your local coffee shop) are still in demand and making a resurgence.
- The continued use of technology has created a need for more data centers to store crucial information.
- With so many of our population entering retirement and needing more daily care, senior housing centers are also in demand and considered a wise real estate investment.
Do Your Research!
Before you invest in any type of real estate, conduct your due diligence, and look into the specific areas you are considering investing in to make sure that the long-term investment meets with your investment goals. Many seek out industry experts like Patrick Carroll and other well-respected investors to see what they are investing in and track how their portfolio has done throughout several up-and-down cycles.
Before investing, you should also consider looking into current and future investment trends such as those explored in ExplodingTopics.com.
