The real estate market changes constantly. An investment strategy or market sphere once full of opportunity can dry up quickly. A big part of being a real estate investor is to identify existing market opportunities and to have the flexibility to take advantage of them.

2020 proved as a challenging year for real estate, but even in down markets, you can find the opportunity for real estate investing. Let us check the top real estate investment opportunities in 2021.

Adaptive reuse of undesired retail, office space

and hotel

Adaptive reuse is the process of converting and redeveloping undesired real estate into a new form of real estate that serves current and future market demand in a better way. There are several hotels and entertainment venues, office buildings, and retail spaces that are impacted by the coronavirus crisis. Recently reopenings have improved the impact a little, but low demand has led a number of businesses to close their doors or to file bankruptcy.

The sector will recover inevitably, but it’s a time taking process. In the meantime suffering property owners need to get creative. Affordable housing and industrial real estate have high demand. Being a real estate investor you can turn an old hotel in the city into an affordable housing scheme. Besides that, you can also convert an old retail building into a warehouse. It can turn out to be a profitable long-term solution. However, there are a lot of hurdles in this process.

Industrial real estate

Industrial real estate is a top-performing sector of commercial real estate for the past few years. In several ways, the global pandemic stimulated the demand for industrial space. It has put pressure on cold storage, warehouses and distribution centers, and data centers especially. Currently, the demand is having a temporary wave but the sector is likely to continue to have a strong year. In short words, there are a lot of opportunities for continued growth in 2021.

Rental property 

Several rental markets are witnessing an uptick in demand and rental income, however, others aren’t so lucky. High-density urban areas are undergoing a mass departure of residents fleeing the expensive and populated metro centers for more space and budget-friendly accommodations in the suburbs. This pandemic has left hundreds of thousands of landlords in the dust. The landlords are unable to evict nonpaying tenants and still have responsibilities of maintaining the property and taxes, insurance, and home mortgage.

These tight-strapped landlords are looking to sell their property as well. Investors with patience and money can surely pick up these rental investments at a discount.

Fix and flip

The fix-and-flip market is hyper-active right now. Initial concerns about another real estate bubble were instantly put to rest as home values rose dramatically. Besides that, the demand outpaced supply in most markets. By the end of 2019 and the beginning of 2020, fix-and-flip activity was increased, however, their profits were down. Things reversed in the Q2 of 2020. Some investors took a step behind to examine how the coronavirus pandemic would impact the market.

Observing that the demand for newly renovated homes is still high, it is believed that 2021 is going to be another active year for investors who are planning to fix and flip.