Among the possessions obtained through legal rights, the property stays on top through the successful business of real estate and construction globally. The real estate industry gained evolution as the world evolved from an agricultural society to an industrial one. With that came a boom of industries, commercial and residential real estate markets, expanding into one of the most profitable and leading sectors around the world.
The European market, either commercial or residential, is expensive. However, for real estate franchise as well as investment opportunities, Europe is the most attractive region. According to Statista, the commercial sector was at $9 trillion in 2020, and the market cap with listing real estate companies was over $577 million. So, the investors can definitely find real estate and property business opportunities in Europe.
Facts About Real Estate Business:Several facets of property are under the domain of the real estate agency, from marketing and leasing of commercial property to selling and managing residential or agricultural properties. Both foreign and national retailing are carried out on a large scale. According to Statista, residential properties worth $54 billion, and $34.3 billion is the worth of commercial properties sold to foreign buyers in the US alone. Organized retailing around Europe accounts for 70 percent of the overall estate market, 40 percent of which is under Brazil.
The largest retail brand in Europe during the year 2017 was the German retail market, with an estimated value of 560 billion. The considerable growth of the market was noticed mainly in central Europe as compared to Western Europe with the following highest turnovers recorded in 2018, Bulgarian market at 7.7 percent, Czech Republic at 7.2 percent and Romania at 7.1 percent.
Real Estate Industry Trends:More and more people are turning towards real estate franchise opportunities due to its resilient growth in the times of today’s fluctuating economy. But, when setting a step into this huge industry, an investor must be able to spot future trends through the lens of known facts and figures. The market is changing on a large scale, recovering with new growth phases, especially after the pandemic. Buyers’ demand for industrial and commercial property and real estate is ahead due to greater profitability.
As a result of digitalization and the availability of local and international opportunities, this market is in the hands of billionaires and ordinary people due to the concept of fractional investment and online transactions. Therefore, we need to realize that real estate isn’t just a financial trend but also a social one.
Real Estate Sectors- Development, Marketing, and Management:Under the development section of commercial real estate, we find rezoning, renovating, and construction of buildings, later selling or leasing the finished product. However, the undertaken project walks on the thin film of financial risk.
After development, agencies come to the sales and marketing firms that collaborate with the developers, helping them sell or buy the units they create or need to attain. Their focus is mainly on new units and commissioning by sales agents.
Another successful sector in the real estate industry is property management, which helps individuals buy rental places or manage a building. Their work domains include lending, virtual or physical, rental payments, repairs, and fixing deficiencies.
Flex Property in Demand: A flex property is a hybrid of office and industrial space in simple terms. Due to its versatile nature, it has attracted a number of businesses. It is one of the highlighted trends of real estate franchises. An appealing aspect is customizability, providing its tenants with more space at an affordable cost. An average leasing rate for flex space is roughly $11.71 in Tennessee. Another strong portfolio for flex spaces is the multi-tenant office and triple net leases, with an average occupancy rate of 90 percent throughout Southeast and Midwest with rising opportunities.
Internet Real Estate Marketing: A wave of digitalization is surging rapidly, now making its way into the real estate market, producing many real estate career opportunities. Buying and selling are now gone online, with quick expansion resulting from social media sharing and digital communication and interaction development. In addition, there are no geographical limitations anymore.
With the help of such online tools at our disposal, effective marketing can attract more buyers than ever. During the last decade, the percentage of people using e-real estate has increased from 5.5 percent to 70 percent by the end of 2020 in the UK. From retailing offices, rental places, shopping centers, and homes to their management, many local and international real estate franchises are investing in this industry. Almost a quarter of those agencies are either partially or entirely online. This improves the odds of their success.
Real Estate Franchising: 2020 was a dry year for the real estate market. An investment area once blooming with opportunities can soon be cleaned out depending upon the trends and daily economic fluctuations. A big part of becoming a successful commercial or industrial agent is identifying the right market opportunities and pivoting them to your advantage.
One of these opportunities is the redevelopment of unwanted real estate into a different type for future market demand. This was mainly what saved the commercial investors at the time of the pandemic. Entertainment venues and office retailing were heavily impacted. What grew more were affordable housing and industrial sectors, warehouses, storage units, homes with open spaces are in demand. Rental prices in major cities, like Berlin and Amsterdam, are surging fast. Interest rates are mostly below 1 percent. Commercial real estate has a cash return of 4-6 percent with limited capital gains.
The Next Steps:
Get insight to understand the real estate business better and spend your resources to see developing outcomes. However, the real estate industry is a long-lasting and profitable trend that will lead you to your expectations.