San Francisco Bay Area: Hottest Real Estate Market for Investors
The Tech industry has caused dramatic changes in the real estate world. Prices and rent values reflect this change. According to a CNN report of May 2015, Bay area real estate prices have increased by 14.3% in the last year.
The heart of San Francisco is surely a jam-packed place, but it offers different options for you. You can start a company, enjoy a drink at the local bar, check out various dining options and see the increasing prices of real estate market.
It is a little expensive to live in the city, but you can make it up if you are working in the “tech department”. Bay area is primarily known for multiple startup companies. Sometimes, you’ll see 3-4 startup companies working in the same building. The increasing market for technical services has made it a promising option to house your startup in the San Francisco.
Statistics shows that people working at Google, Facebook, and Apple own a house worth more than $1 million. This trend predicts the future, and we wonder what’ll happen when Uber, Dropbox, Airbnb, and Pinterest join the Bay Area.
According to CNN reports, Technology companies have obtained 60% of all leases in San Francisco in 2015. Tech oriented areas are getting denser. The “tech fashion” was limited to the Silicon Valley. Companies like Apple were born there, but now, this is going to expand into other areas.
SF Bay Area appears to be the new Silicon Valley, but the demand and supply ratio is not balanced here. Estimates show that prices will go up by 3.9% in the next year too. Sellers are willing to wait for the next year that may have another impact on the price increase.
The commercial real estate has changed in the past few years. Technology workers require a collaborative environment with minimum space. This concept has made us share light, workspace, and technical resources.
The Bay area is on a watch list. There can be huge variations in market prices, rent, and venture capital deals. The SF Bay Area covers 47 square mile space with over 837,442 people. It will not be a surprise if the city runs out of space for new residents.
Advice for Real Estate Investors
Real estate investment is a safe game in San Francisco. The prices are gradually increasing despite many changes in the market trends. Demand has surely declined in the last quarter of 2015, but San Francisco remains the hot spot for investors. The year 2016 looks promising, but we might see a decline in the price range.
San Francisco market has seen variations since 2011. The price range has increased 60%-65% in a single calendar year. The market showed some stability in the mid of 2013, but the next year saw the big acceleration in prices. The year 2015 has been a remarkable year with the October being the lowest regarding profit.
The upcoming cold months may see a decline in customer demand. If you are looking to invest in this business, you should act now. Statistics already predict a 3.9% price increase that is expected to accelerate at a dramatical rate. If the prices decline in December, be ready to jump into the business otherwise, you might miss a golden opportunity.
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