The real estate market is one of the most popular investment segments, so more and more investors are choosing this area. This sector is constantly changing due to economic factors as well as growing housing demands. Learn more about real estate market forecasts and the most profitable areas for investment in 2024

Are you planning to expand your investment portfolio? If so, you should definitely familiarize yourself with the main trends and forecasts of the real estate market in 2024. Should we expect changes in mortgage rates? When is the best time to buy? In this article, we will look at the prospects for the housing market in 2024, including mortgage rate forecasts, the possibility of changes in housing prices, and the profitability of investing in real estate this year.

Is it worth investing in real estate in 2024?

Investing in real estate has always been considered one of the most profitable ways to ensure financial stability and capital growth. Whether you're an experienced investor or a beginner, real estate's appeal is not affected by the economic climate. Why is investing in real estate a smart decision in 2024? Let's take a look at the main reasons:

Historically low interest rates

One of the main reasons why you should consider investing in real estate in 2024 is the persistence of historically low mortgage rates. The global economic context has forced central banks to maintain loose monetary policies, which has led to low mortgage rates. Taking out a low-interest mortgage can significantly reduce the total cost of home ownership, making this a favorable time to invest.

Potential for value growth

Despite the cyclical nature of real estate markets, experts predict a steady increase in property values in the coming years. Economic growth, population growth, and demand for housing may contribute to the growth of real estate values. Investing in real estate in 2024 can give you the opportunity to benefit from future value growth, increasing your capital over time.

Tax advantages

There are various tax advantages to owning real estate. Mortgage interest deductions, real estate tax deductions, and depreciation deductions are just some of the benefits that can significantly reduce your tax liability. Tax planning tips can help you maximize these benefits and get the most out of your real estate investment.

Diversify your investment portfolio

Real estate is a great way to diversify your investment portfolio. Unlike traditional financial assets such as stocks and bonds, real estate tends to have a low correlation with the stock market. Including real estate in your investment portfolio will help spread risk and increase portfolio stability.

Growth in rental demand

Demand for rental property is expected to continue to grow in 2024. Economic and demographic trends are contributing to an increase in the number of tenants. Investing in rental property can provide a steady stream of income and long-term investment potential.

Trends in remote work

The growth of remote work has changed the way people approach their professional lives. More people have the ability to work from anywhere, which leads to an increase in demand for housing outside of major urban centers. Investing in real estate outside of metropolitan areas can offer affordable options with the added benefit of quiet and spacious housing.

Infrastructure development

Public investment in infrastructure projects can have a significant impact on real estate values. Areas with active infrastructure development, such as new transportation hubs or public facilities, often see an increase in property values. Regions with planned infrastructure projects should be monitored when making investment decisions in 2024.

Will the housing market collapse in 2024?

The housing market can be subject to cyclical adjustments from time to time due to changes in the supply and demand ratio. "Housing bubbles occur when prices rise to excessive levels, but a housing market crash is unlikely at this time due to several factors.

Housing prices are expected to decline to some extent, but not in all regions at the same time. A moderate cyclical correction is likely to occur, but not a collapse or sharp decline. One of the factors holding down prices is the low supply of housing compared to strong demand.

A significant increase in housing construction is needed to balance the market and replenish supply. This could ease pressure on prices and allow the market to respond more resiliently to changes in demand. In addition, the recent sharp decline in mortgage rates could also stimulate demand for housing and increase activity in the market.

The bottom line is that the housing market is likely to go through a period of correction, but is not expected to see a radical drop in prices or a collapse. Changes in the supply-demand balance, as well as factors affecting mortgage rates, will determine the course of further development of the housing market.

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The most profitable types of real estate for investment in 2024

There are several types of real estate that investors should be familiar with: commercial, residential, land, new buildings, crowdfunding platforms, and real estate investment trusts (REITs). Each of these types has its own unique advantages and disadvantages that investors should evaluate. Let's take a look at each of the available options:

Residential real estate

There are many types of residential real estate for rent, although single-family homes are considered the most common. However, there are other types of residential real estate such as duplexes, apartment buildings, and vacation homes. For many investors, residential real estate is an attractive option because it provides a stable income. Depending on the strategy and market, competition can vary and what works for one investor may not be the best option for another.

Among the most common exit strategies for residential real estate investments are wholesale sales, redevelopment and buy-to-let. Each of these strategies has its advantages and disadvantages, so it is important for investors to analyze the market and develop an individual approach.

Effective management of residential real estate investments can generate attractive returns that combine stable cash flow with tax advantages. In addition, property can become a source of passive income through rent and potential growth in value over time. The key is to understand market trends and choose the best strategy to achieve your financial goals.

Commercial real estate

Investing in commercial real estate includes various types of properties, such as industrial, office, retail, hotel and multi-family projects. These types of real estate attract investors for various reasons, but one of the key advantages is the ability to generate higher cash flow.

Commercial real estate can provide stable income through long-term lease agreements and lower vacancy risk compared to residential real estate. Investors who are focused on improving local communities may see commercial real estate as a means of supporting this focus by providing services and business space in the community.

Industrial real estate typically has great revenue potential through service charges and product sales. Investors can maximize their returns by utilizing industrial properties to operate businesses and provide services.

In addition, there may be less competition in the commercial real estate market, as it requires more investment and a comprehensive management approach. Investors who are ready for larger investments and greater scale may find commercial real estate a profitable way to generate stable income and grow their portfolio.

Investments in raw land and new construction

Investments in raw land and new construction are two types of real estate investments that can diversify an investor's portfolio. Undeveloped land is vacant land that is available for purchase and is particularly attractive in markets with projected growth. It can be an ideal option for investors looking to develop real estate projects from start to finish.

New construction, in turn, includes land on which real estate has already been built or is planned for new construction. Investments in new construction are also popular, especially in fast-growing markets.

Although some investors may not feel comfortable with these types of investments, they can generate attractive returns. Undeveloped land and new construction offer unique opportunities for real estate investors, whether they are interested in developing a project from start to finish or generating income from a long-term held property.

It is important to conduct thorough market research before investing in land and new construction. This will help investors find the most attractive opportunities and maximize their real estate investment.

Real estate investment trusts (REITs)

Real estate investment trusts (REITs) are companies that own different types of commercial real estate, such as hotels, shops, offices, shopping centers or restaurants. Investors can purchase shares of these companies on the stock exchange, thereby investing in the real estate owned by REITs without having to own the property themselves.

One of the peculiarities of REITs is their obligation to pay shareholders at least 90% of their taxable income annually in the form of dividends. This allows investors to receive a stable income from real estate investments while diversifying their portfolio.

The main advantage of a REIT is its flexible liquidity. Owners of REIT shares can easily sell their units on the stock exchange when they need urgent funds or want to reallocate their investments. This liquidity distinguishes REITs from other forms of real estate investment, such as private real estate investments, which may be less readily available.

Overall, investing in REITs is an attractive option for those who value stable real estate income but are unwilling or unable to manage real estate themselves.

Crowdfunding platforms

Crowdfunding platforms provide investors with access to various assets that were traditionally available only to wealthy individuals. This gives investors the opportunity to easily find high-yielding assets, but this type of real estate investment involves certain risks. Most crowdfunding platforms are limited to accredited investors or individuals with high net worth. However, some platforms also provide access to non-accredited investors.

The main types of real estate investments through crowdfunding platforms are non-traded REITs or REITs that are not listed on a stock exchange. With non-traded REITs, your funds can be invested for a longer period of time, usually several years, and you will not have the option to withdraw them earlier if needed. This requires investors to be willing to commit to a long-term investment journey and expect to receive a return in the future.

Crowdfunding platforms are opening up new opportunities for real estate investing, but before making an investment, you should carefully assess the risks and timeframes associated with these types of assets.

How to find a unique place to invest?

A profitable option for investing in Bali (Indonesia) is to purchase premium apartments in ANTA Residence Canggu.  

The building with a wave-shaped roof embodies the idea of a perfect surfing wave, reflecting the spirit and passion for life, harmony with human and water nature.  And the Jungle roof concept symbolizes respect for nature and care for the environment. The planting of 10,000 plants, including beautiful 5-meter palm trees and rare tropical species, is a great example of how construction and preservation of the unique nature of the island of Bali can be combined.

ANTA Residence Canggu is a 5* business class apartment with a unique infrastructure on the main street of the most fashionable location in Bali, Canggu - Batu Bolong. The property is located 7 minutes from the Indian Ocean, the beach and the surf spot. There are 5 options of apartments to choose from, from 40 m², from $ 139,000

Turkey is also an attractive real estate market where you can get a high return on investment. The following are some of the best offers of apartments for investment:

HASAN BEY RESIDENCE is a business class apartment with an area of 53 m² with a modern attractive design: 1 bedroom, living room with kitchen, bathroom. Located in the immediate vicinity of the Mediterranean Sea and major attractions. Estimated return on investment for daily rent is 9.8% per annum. Investment from 145 000 €.

HMG GOLD RESIDENCE is a comfort class apartment in the historical center of Antalya. 2+1 layouts with balconies, only 20 apartments in total. Unique location: just 3 minutes from the Mediterranean Sea. Estimated return on investment for daily rent is 9.8% per annum. Area 72 m², price from €175,000.

All these projects are developed by a reliable international developer AntaGroup, guaranteeing high quality construction. More offers, current prices, and competent advice on purchasing real estate from the developer AntaGroup can be found here.

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