In 2021, the real estate market faced fluctuating trends, threats and highlights. It was a tumultuous year, and this is not expected to change in 2022. Despite expecting to see a recovery in the market, the prevailing inflation has a major impact on the global real estate market. In this article, we will briefly look back at the developments in the real estate market in 2021 and look at reasons why real estate is still a smart investment in 2022.
A brief retrospective on 2021
Despite the corona crisis, 2021 turned out to be a great investment year. Unlike in 2020, more money was spent on commercial space compared to residential space in 2021. This is notable because the demand for residential space is still increasing exponentially. Corporate real estate grew in popularity because there are many companies that grew significantly during the corona crisis as well. These companies were prepared for and able to respond quickly to the post-crisis economic recovery, which allowed them to make real estate investments. Moreover, by the end of 2021, investments that had been postponed due to the crisis were made after all.
The uncertainties in the real estate market in 2021 were clearly due to the corona crisis. In addition, the crisis has also had a great impact on unemployment and a major shortage of raw materials and commodities. In mid-2022, investors are more concerned about the war between Russia and Ukraine. This has led to an indirect increase in risks on the real estate market. After all, higher inflation will also lead to a rise in interest rates in some cases.
Trends guiding the real estate industry in 2022
Basically, there are 3 major core values that will guide the real estate market in 2022: more attention for the user of the property, faster actions on available building land, and attention to the climate.
More attention for the user
The continuing shortage of personnel in the business market is causing companies to become increasingly creative in automating work. In addition, the focus is more on working from home, which in reality would suggest that office space will become less popular. However, the opposite is true. The right office building, for example, can attract and enthuse potential new colleagues to apply for a job. In addition, attractive business premises are the driving force behind higher efficiency. If the office is well-equipped, this also has an impact on the IT structure and security within the company. Because there are not many offices that meet the new social standard, there are promising opportunities for investors in the area of project development.
The battle for construction sites
The battle for construction ground is in full swing. The biggest pain point is expected to revolve around available housing in 2022. Indirectly, this also affects other aspects of the real estate industry, including the development of commercial buildings, retail stores and even an entirely new infrastructure. In short, the imbalance between supply and demand means that more opportunities are emerging for real estate developers and investors.
Project development with sustainability as a guiding principle
In Europe, the Paris Climate Agreement was supposed to reduce emissions. Nevertheless, the latest report from the Intergovernmental Panel on Climate Change (IPCC) shows that the earth is actually warming up faster. Consequently, there is more demand for sustainable solutions for the construction and use of real estate. And that’s where the Red Sand Group comes in. Investing your money safely and carefree has never been more rewarding. From financing sustainable project development to existing properties, recreational opportunities and raw soil. RSG offers their investors an attractive range of opportunities worldwide.
At RSG, we believe that despite repeated challenges, the real estate industry will recover in the coming year. As investors and real estate experts increasingly join forces, it is possible to realize real estate projects on a large scale. The probability that these projects will be leased or sold after realization is almost 100% due to the huge imbalance between supply and demand. This imbalance is noticeable worldwide, from which real estate investors can benefit in 2022.
Red Sand Group sees opportunities in chaos and has many years of experience in this dynamic industry. By properly matching supply and demand, clear communication and a unique approach, we aim to provide you with an excellent return on your investment. Are you curious about how to expand your portfolio by partnering with Red Sand Group? These are the projects we are currently focusing on.