In 2012, the residential real estate market worldwide reached one of its lowest points. That is why many market analysts and real estate professionals have high hopes for 2013. Whether the new year will bring light on the market or not, only time will show us.
However, there are already some predictions about the residential real estate market in 2013. Now let’s take a look at the most interesting if them.
Rise in the purchases of second homes
In 2013, developers’ prices are expected to remain competitive with minor exceptions for high-end luxurious projects in hot locations. Mortgage rates are expected to continue to be low. That creates perfect conditions for the purchase of a second home. People will now have better chance to buy a second residential property or to invest in a vacation spot. If you are an expatriate, buying property in your home country will be a smart move.
Building activities revive with a new force
Next year, residential projects are expected to be more in demand. The market is starting to improve, and this tendency will bring back on the tables shelved projects or even add a few new ones. Many investors will finally see some development around their frozen assets, which will make them more optimistic. However, it is not advisable to rush and put a down payment for a new off-plan apartment, because there is plenty of already build up properties that can start netting rental returns instantly.
Renting will continue to be popular
It is true that the market is now seeing some minor improvement. However, the job growth is still not that high as it used to be. Salaries growth is even far behind. As a result, many people won’t feel secure and stable enough to buy their own home. Especially in countries with a large number of expat population, renting a home will remain a logical and common choice.
Rise in demand for custom homes
Custom homes are designed to meet the specifications and needs of the person who invests in them. These homes lost some of their appeal during the past few years. That, however, will change in 2013 when the custom homes tendency will slowly start to revive. Improving economic conditions present opportunities for smart investors to amass excessive income and tailor-made luxuries are expected to come back into fashion.
Small homes with many amenities
Today, more and more young people live on their own. That is why new apartments are now designed for singles and are much smaller than they were in the past. People now prefer to live in small, but more sophisticated residential units. Swimming pools and gyms are becoming mandatory on tenant’s demands lists.
More luxury and unique home designs
Residential renters with handsome allowances will look for homes that are one-of-a-kind. They will want something new, fresh and unseen. Landlords will do everything they can to fulfill this emerging demand by adding new features and designs. Colorful painted walls, for example, surely are a point of note for prospective tenants. Just be careful to choose likable colors!