There is no doubt that real estate investment is still a less risky business. Despite the commotion in global equity markets, many investors would still put their money in real estate.
The Street reports that given the fact of the interest rate hike in Federal Reserve, but there are still "many investors will likely be seeking refuge in real estate." This is because the real estate industry proves to be less risky and gives a considerable profit.
Report says that the real estate worldwide is shaping up positively already for this year. "However, a solid U.S. economy and strong demand for housing and business space throughout the world should keep the real estate industry percolating."
Collier's International, a real estate company, gives a report on the factors that would positively shape the real estate industry in 2016. According to the said report, "the appeal of global real estate has increased exponentially." The result of the survey conducted supports that more than half of the 600 investors respondents would want to "allocate more capital in real estate this 2016." Based on the profile of these respondents, 51% of them have owned multi-asset portfolios.
It is also noted that secondary cities will also thrive in the global real estate market. These cities will also be the target of foreign investors in expanding their real estate portfolios. Investing in real estate will also minimize risk especially for foreign investors who are into oil industries and other business enterprises.
Bigger Pockets on the other hand has different and more practical reasons why investors would like to invest in real estate. First reason is that people will always need houses. The demand is increasing as population also increases.
Based on the report, it is stated that "more and more families needing somewhere to live, the demand for single-family homes, apartments and other property types is not going away anytime soon" since population definitely increases each year.
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