TheHouseMonk brings you 7 new trends in real estate.
REITs (Real Estate Investment Trusts) helps investors to own valuable real estate by:-
- Liquidating funds.
- Low entry point (Invest in real estate as less as Rs. 1,000).
- Reduction in mitigation risks.
It allows builders to convert units into ‘shares’ of real estate (similar to shares of a company in a stock exchange) under REITs which in turn helps the investors.
This concept will be applicable for commercial properties whose construction has already been completed, hence helping them with advancements such as extensions and interior design.
2. Fractional Ownership
People now sell a part of their property to another person or a company. This is basically sharing the ownership of the property with another person(s).
Part of the property (example 30%) can be given off to another person or a company so that they can still enjoy the ownership and have funds to use in the case of an emergency.
- Groups of people are starting to pool in money to buy an expensive property. They, in turn, share the profits and losses depending on the percentage each one owns.
- Companies like Point also help by purchasing a part and then selling it back at the market value.
3. Sell Your House Online
You can now sell your property with just a few clicks online. It’s that simple!
- No postings, no waiting for good rent and no negotiating for lower prices. Just click and sell.
- Companies like OpenDoor make it possible to sell the house withing a few days.
- These companies now take care of repair works as well.
- They have started using standardised procedures to evaluate the house where the owners are happy with the price.
The concept of sharing a flat has been an age-old practice, that is now becoming a trend amongst bachelors and youngsters.
People share a multi-room unit between 2 or 3 more people to cut down costs.
People can now choose their flatmates based on various aspects such as similar tastes, hobbies, etc with companies like Roomster.
The concept of sharing is not only limited to the residential spaces but has been extended for commercial purposes as well. This is proving to be more valuable with an increase in the number of startup.
Commercial office spaces will be shared by 2 or more companies to cut down costs.
- A lot of startups are able to cut down costs.
- They can communicate with other companies and gain new ideas.
6. Short Term Rentals
With the tourism industry booming, short term rentals are starting to emerge successfully in the market. Companies like Airbnb are doing a great job in aiding this concept.
Flats will be provided for rent on a short term basis starting from a few days to a couple of weeks.
Companies like Airbnb have started constructing concept houses like living in a log, cube, etc. These are affordable and easy to build. They also add to the experience of the stay.
7. Rental Parking
With the increase in vehicles on the road, the demand for parking spots has also increased. House owners have taken this opportunity to provide parking spaces on a rental basis.
Any small additional spaces are converted to parking lots and are given on an hourly basis to vehicle owners.
Houses in proximity to commercial areas such as shopping malls have started converting empty spaces as parking lots where people can park their vehicles. This has helped users reduce the time wasted in search of parking. Even companies like BHive have invested in such parking areas.