Real Estate Investment Trends: Legal Considerations for Investors and Developers
Things are changing rapidly in many sectors, but particularly so in the real estate market. Here are three major trends we have identified for 2024.
Crowdfunding
The real estate market is witnessing some innovative shifts. Real estate crowdfunding, which offers an avenue for investors to tap into lucrative property markets, has revolutionized the way people invest in property. Specifically, real estate crowdfunding allows investors to pool their resources, democratizing access to real estate investments. No longer can only the rich or institutional investors take advantage of rising property markets. The appeal of crowdfunding is that it lowers the barriers to entry, as well as offers diversification as investors spread the risk among different projects or properties.
While the benefits are obvious, there are always risks related to low returns and market fluctuations. If you’re interested in exploring real estate crowdfunding, an experienced Harrisburg real estate lawyer can help you conduct the appropriate due diligence to reduce your risk.
Sustainable Real Estate
The challenge of global warming is everywhere. But in 2024, the real estate industry is working to rise to the many climate challenges by creating sustainable buildings – and not just in the area of green spaces and energy-efficient structures. Developers are seeking to develop living environments that focus on health, well-being, and sustainable ecological balance.
Developing sustainable real estate means creating environments that promote well-being and long-term ecological balance. Properties constructed using environment-friendly materials, that offer energy-efficient designs, and that allow a lifestyle with a small carbon footprint are particularly appealing to investors. Rainwater harvesting, solar power, and similar initiatives are also becoming more and more common, with global sustainable development globally being the goal.
From a legal perspective, it’s important for investors to be aware that many aspects of sustainability must comply with a plethora of federal, state and local real estate, energy, and environmental laws, regulations and codes. Before you make an investment in a sustainable real estate project, it makes good sense to have a real estate lawyer review the project and plans.
Socially Responsible Investment
Making real estate investment decisions is no longer just about profitability. It’s also about acknowledging that being an investor requires a commitment to making a positive contribution to your community and to society as a whole. Affordable housing, the creation of communities with schools and retirement facilities, reforming disadvantaged communities, and similar initiatives are more important than ever. In the long term, these types of socially responsible investments create desirable communities and are financially attractive in the long run. Rising investor demand for these types of investments has created innovative financing vehicles such as social impact funds and green bonds.
Though the concept of socially responsible investment is appealing to many people, as with all real estate investments it’s prudent to have a lawyer review your investment documents to make sure that you are properly protected.
Contact a Harrisburg Real Estate Lawyer
These three 2024 trends in real estate – crowdfunding, sustainable real estate, and socially responsible investment – are exciting and innovative and acknowledge that real estate investment is about more than just profits. Nevertheless, the legal aspects of real estate investment can quickly become complex. Contact One Oak Legal to schedule a free consultation today.