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Property deals to account for $1 trillion worldwide by 2020

On Behalf of | Mar 25, 2016 | Real Estate Transactions

Delaware real estate investors and developers may soon enjoy a market that has an increased capacity for profit. According to some forecasters, the total value of real property transactions around the world will be greater than $1 trillion by 2020. Evolving market characteristics, such as the expansion of alternative property sectors, have all combined to contribute to the new trends. Changing demographics, such as the massive projected increases in elderly populations, are also predicted to prompt financial institutions to become more active in general.

Property analysts say the projected figures represent a large jump from previous conditions. In 2015, for instance, real estate only resulted in $700 billion worth of transactions. As the prevailing forms of investment expand to incorporate more types of property and debt, demand may rise. Similar effects could be observed as more countries develop strong multifamily housing markets.

Of particular note is the fact that international investors are becoming increasingly involved in markets outside of their regions. In 2020, cross-border transactions could contribute to more than half of all market activity. Ongoing trends have already impacted the way investors leverage private equity capital, with almost a decade of globalization, diversification and inflation hedging providing a platform for even more future growth.

To benefit from profitable real estate transactions, investors and developers need to take many immediate and long-term factors into account. In addition to gauging trends like what kinds of financing options are available, they may find it beneficial to meet with an attorney in order to determine how zoning laws and other regulations might impact the viability of their proposed deals.

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