Successful real estate investment hinges on understanding investor sentiments, needs, and preferences in the face of uncertainties.
To understand how investors feel about the current real estate market and the investment management companies they invest with, AppFolio conducted a study that surveyed 150 respondents.
This article covers the critical findings of the study and provides a general overview of what you can expect in the 2024 Real Estate Investor Report.
Understanding Investor Sentiment and Concerns
The survey highlights that investor sentiment toward real estate investing in the past four years is generally positive, with a 72% increase in investment among 90% of investors aged 18-44.
Almost all of the survey participants plan to maintain or increase their real estate investments in the years to come.
However, 2024 will be challenging due to uncontrollable factors such as economic uncertainty, inflation, market volatility, and growing competition among investors.
These challenges can significantly impact investors’ decisions to invest and increase or reduce their investments.
Real Estate Investor Strategies
According to the data, investors in 2024 are diversifying risk by exponentially increasing the number of investment vehicles and spotting opportunities with significant gains.
While investors still prefer the stock market and real estate, they are investing more of their capital in cryptocurrency, hedge funds, and venture capital.
The data shows that most investors invest in real estate for market-beating performance long term instead of focusing on portfolio diversification and short-term gains. Also, investors prefer real estate investments far from their location due to intense local competition.
Investors continue to use cash-on-cash returns, asset location, internal rate of return, and minimum investment amount as criteria for assessing real estate investment performance and returns.
How Investors View Investment Management Companies
The survey data shows that investors are generally satisfied with investment management companies that offer better transparency and favorable returns.
Investors work with investment management companies for the following reasons:
- Portfolio diversification
- Risk reduction
- Property operations and asset management
Investors expect reliable industry knowledge, good customer service and returns, complete transparency, and robust reporting from their real estate management companies.
Investor Technology Preferences
The need for greater transparency and access to investment data has brought an increase in investor portal usage.
Investor portals are essential for investors to get updates on individual assets, view performance metrics, and check new offerings from their investment management companies and managers. To track and access real estate news and trends, investors rely on specialized websites, digital resources, mobile apps, and investor portals.
The data shows that, essentially, investors are looking for dedicated tools or software that help them with the following tasks:
- Tracking their investment performance
- Keeping up with the latest real estate investment trends
- Accessing investment information easily
- Finding investment managers
Get the Data and Insights to Win More Clients
The 2024 Real Estate Investor Report offers a thorough view and analysis of the market’s current state, including how investment managers and companies can find strategic opportunities and succeed. For comprehensive data and valuable insights to help you navigate market shifts, outpace your competitors, and exceed client and investor expectations, check out the full report here.
