The real estate market is getting on track in most states and many people are now considering investing in real estate properties as a source of passive income. However, not all parts of the country are doing well and aspiring investors should research the trends in the cities where they want to buy properties before committing their hard earned money. This article highlights on the situation of real estate in Atlanta in 2015 through 2016 in order to help aspiring investors make informed decisions. The article also sheds some light on the situation of the Atlanta property management trend that could benefit those planning to become property managers in the region. However, investors should note that the real estate market is yet to stabilize fully in many parts of the country and investors should research extensively before buying properties.
Last Year in Review
Looking back to the year 2015, real estate in the region experienced tremendous growth and investors reaped huge returns. Both residential and commercial properties appreciated with a big margin since the 2008 crisis. According to the report given by some Atlanta property management companies, vacancy rates in the area were the lowest in 2015 compared to any other year after the crisis. It is also worth noting that the trend is expected to keep on improving and experts project that the Atlanta real estate market will continue to thrive throughout 2016. This is because of the rising job market and growing housing demand in the region.
Atlanta Real Estate Outlook
The city of Atlanta is a commercial hub in the country and job growth in the region is expected to increase commercial leasing in 2016. According to a report by Integra Realty, demand for offices in the region has increased rapidly since 2014 and the trend is expected to continue improving throughout 2016. Over 500,000 jobs have been created in the area annually since 2012 and this has caused the demand for offices to rise in Midtown Atlanta. Atlanta property management companies have identified the growth of the movie and technology industries as some of the key sectors that have increased demand for commercial properties in the region. Many tech companies are establishing businesses in Georgia and demand for commercial space is expected to rise year after year.
It is worth noting that not only commercial properties are highly demanded in Atlanta. According to the interviewed Atlanta property management companies, the demand for residential properties is also on the rise and rates increased by 10 percent in the first quarter of 2016 since January 2015. Many people are relocating from other parts of the country and the rest of the world to Atlanta in search of greener pastures. Subsequently, this has caused the demand for housing in the region to shoot up in the recent years.
The majority of the people relocating to Atlanta are Millennials who have not accumulated enough wealth to buy homes. Therefore, rental properties are highly demanded in the area. Some of the highly demanded properties in the region include condominiums and rental homes. It is also worth noting that the number of people visiting the area for vacation has increased year after year and the demand for vacation apartments and homes is on the rise. However, the number of people willing to buying homes in Atlanta is still low and those aspiring to venture into the business of flipping houses have to wait longer for the market to stabilize.
According to the report given by the Urban Land Institute, Atlanta is among the top six real estate markets to watch in 2016. Properties are relatively affordable compared to other real estate hotpots in the country. Therefore, it is the right time for aspiring investors to acquire more properties in the region when they are still affordable.
My Opinion of the Atlanta Market
Based on the current real estate market trends, Investors who will buy properties in the region before the end of 2016 are going to make huge returns if they decide to sell their properties three to five years later. Rental properties are the most favorable in the region because rental rates are expected to continue increasing throughout the year. More so, the number of property management companies in the region has also increased. This has made it easier for investors to own rental properties in Atlanta even if they do not live there. All that an investor needs to do is to look for a local property management firm to take care of the investment on their behalf.