The real estate and construction industries are closely linked, so any new construction methods tend to end up affecting real estate trends too. Being informed about these trends can help real estate developers, investors, or managers to make wise choices that appeal to consumers.
One of the biggest shifts in modern real estate has been modular construction. This type of construction involves producing major components of buildings off-site and then assembling them rapidly. This is becoming popular because it is both affordable and convenient. The fact that most of the components are already ready before on-site construction begins means projects can go up in just a few weeks.
Modular construction is mostly driven by new technologies that allow for precise and custom designs. This trend is also driving a construction trend for luxury. Allowing expert companies to create multiple sets of the same basic component results in budget-friendly pricing. Finishes and materials that were once strictly high-end can now be created at far more reasonable prices.
The interest in modular construction and luxury appearances is becoming evident in real estate trends. Investors are realizing how easy it is to create hotels, low-rise housing, luxury apartments, and office parks. There is less risk to begin new projects since modular construction ensures that costs remain low and deadlines remain short. The ease of using modular construction for rental and hospitality properties allows them to start generating revenue very quickly. This means that areas known for extremely high priced real estate are likely to have more new buildings created soon.
The idea that modular construction will result in more new real estate in high price areas is not just speculation. In the past year alone, over $1 billion has been invested in various startups that focus on modular building. These companies are primarily focusing on real estate in larger cities like New York City and San Francisco, where there is a demand for affordable housing and office space.
Individuals looking to get in on the ground floor of these trends have many opportunities to do so. There is a huge range of projects that can take advantage of modular construction, so getting involved in them is often a safe bet. Since modular construction continues to revolutionize real estate, many investors are also getting interested in the construction companies themselves.