Is real estate investment safe in the current volatile market?

May 4, 2020 | Aultrust Financial

With today’s concern over COVID-19 and its negative impact on business and financial markets, investors are turning away from stocks, bonds, and mutual funds, and more towards alternative assets. The volatility of most asset classes makes real estate a safer bet for not only investors but first-time buyers.

The above is not to say that real estate investment should be taken lightly; the market is constantly changing and the most optimal properties might not be the traditional ones. Heightened competition for deals has made some properties unreachable to some while other properties might be affected by changes in demographics and demands the current buyers-pool is looking for.

Which are the most attractive real estate investments?

With high valuations leading to heightened competition for deals, which sectors in real estate investment are proving to be the most attractive? There are structural tailwinds that support an expansion of commercial real estate debt, and an evolution in the residential sector, via the development of modern, purpose-built multi-family housing. Incorporating sustainability and technology innovation upfront in investment management is imperative from an investor, occupier, developer, and corporate responsibility standpoint.

Demographics in Metro Vancouver are changing and demands for unique amenities are rising. Providing rent-to-own options, lock-off units, coworking spaces, between others, is setting up properties apart from others. Moreover, a strong focus on sustainability and the community creates a feeling of belonging for buyers, making those properties great investment vehicles.

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