Having started 2018 in a mature, post-recession market and enjoying greater stability because of a new bent in the real estate development industry toward caution, we close out the year and head into 2019 with industry leaders voicing cautious optimism. Urban mixed-use properties, data centers, and infrastructure will continue to be priority projects, while the affordable housing crunch will continue to keep multifamily properties viable. On the other hand, much is shifting, and the growth in the real estate market going into 2020 is predicted to be steady but slow. What are the marketing trends developers will need to embrace in order to stay competitive?
- Technology, technology, technology. Real estate development has always depended upon connections and building relationships. Technology makes it easier in many ways, increasing efficiency and giving access to the people online, where they interact socially and professionally. Developers who make the best use of social media and mobile apps will have an edge in building their network of strategically targeted buyers. Technology is also a more powerful marketing tool than ever: virtual tours, for instance, are de rigueur now, and their quality and flexibility are continually improving. Drone photography is the new big thing and is an extremely effective way to capture commercial properties in their entirety. The “crowd” is another technological innovation that’s important because crowdfunding opens the marketplace for investors.
- Touting specialized amenities. Amenities are an increasingly important factor in the competitive housing market. Today’s real estate developers know that having a fancy gym isn’t enough anymore, and are looking for more impressive draws for buyers, like community rooms, dog runs and washing stations, bike repair stations, roof decks outfitted for socializing and entertaining and communal gardens. Providing prospective buyers with these cutting-edge options puts developers at a distinct advantage.
- Playing to the second cities and suburbs. Millennials made up more than forty percent of total home buyers in 2018, and that number will continue to grow as the generation ages into home ownership: a huge chunk of that demographic turns 30 in 2020. Their needs and preferences will drive the market for many years to come, and their focus has turned to places that are walkable and not overbuilt. Secondary markets are emerging to find their place in the sun, and taking advantage of the demand for affordable, walkable housing will put developers in a good spot.
- Repurposing retail. If the traditional mall isn’t yet dead, it’s about to breathe its last. E-commerce hasn’t extinguished the brick and mortar retail store, but it’s made retailers rethink their strategy. Retail space is being reworked, with a focus more on services than merchandise, and multi-use spaces, along with more emphasis on flexibility and fewer long-term
No matter what the trends may be, SagePoint keeps real estate developers at the forefront of the industry, with the professional marketing, sales and advisory services you need to stay on top. When we’re part of your project from the very start, you can expect your property to be positioned, designed and built to target your market and maximize your returns. To learn more about our services, please contact us online or email us at firstname.lastname@example.org.