Records have been broken in the real estate sector in recent years. Once again, the transaction volume in residential properties of the previous year was exceeded. Those who invest in real estate are keeping a close eye on developments. To make gathering information easier, we would like to list the 5 key developments in the real estate industry in 2023.
Sustainable building is the norm
Sustainable building is the use of natural and environmentally friendly materials and practices to reduce the impact of buildings on the environment. The key to sustainable building is to ensure that we do not overuse energy, water or other resources while reducing our environmental footprint. There are many ways we can help reduce the environmental impact of our buildings. One way is to use renewable energy sources. This can be done by using solar panels or wind turbines. Another way is to use less water and work with heat recovery. This can be done by using rainwater harvesting systems and WTW ventilation units.
More room and budget for building rental housing
People worldwide are suffering from an ongoing housing shortage. Therefore, more space will be created for the development of sustainable and transitional rental housing in 2023. Temporary rental housing is intended to be relocatable. So consider the development of off-grid housing that will not be connected to the ground. In addition to this, several states and municipalities offer the possibility of using deductions for sustainable construction. This should help developers develop sustainable properties for occupancy.
More collaborations between developers and governments
A direct result of real estate development is better cooperation between developers and governments. In the short term, housing associations are expected to look for new developers with smart and innovative ideas. This will create opportunities for both the real estate developer and the municipality, the housing association and housing seekers in the area where you operate.
Lower cost of materials
Sustained inflation is costing materials in the construction industry. Costs are expected to drop significantly as the crisis resolves. This will have a direct impact on the price of real estate worldwide. Although the market is still under considerable pressure, the housing market is expected to be one of the first industries to rebound after the 2021/2022 crisis.
Higher transfer tax for real estate investors
To reserve residential real estate for individuals, the transfer tax in the Netherlands will be increased to 10.4% in 2023. In 2022, it was 8%. This is a negative development for real estate investors, but little will change for real estate developers. So if you plan to start investing in real estate in 2023, you would do well to look into real estate development opportunities.
Want to work with an experienced partner to buy, sell or develop real estate? Then you’ve come to the right place at Red Sand Group. Contact us now and experience for yourself the power of a partnership based on trust and professionalism.