is the future of real estate investment in megapolitan areas
Experts believe that real estate development and construction will produce some $25 trillion in revenue between now and 2030. Most also agree that most of that revenue will trickle down to and through the top ten megapolitan areas. from United States. This amount of revenue will completely dwarf the construction boom that followed World War II and means an unprecedented amount of growth and opportunity for investors.
Megapolitan is defined as two or more existing metropolitan areas that have grown together to become one large area and the boundaries of the community have become blurred. An example of one such area is from San Diego to Santa Barbara. When you drive from San Diego, you will pass through Oceanside, Newport Beach, Long Beach, Los Angeles, Thousand Oaks, Oxnard, Ventura, and Santa Barbara. It is very difficult to know when you leave one city and enter another. Robert Lang of urban studies at Virginia Tech has theorized that two-thirds of the population will live in 10 of these megapolitan areas by the year 2040.
Atlantic Coast: Stretches from Boston through New York, Philadelphia, and Washington.
Gulf Coast Belt – Brownsville, Corpus Christi, Houston, New Orleans to Mobile.
I 85 Corridor – Birmingham, Atlanta, Charlotte, Raleigh to Durham.
Valley of the Sun – Phoenix to Tucson.
South – Florida Miami, Tampa to Orlando.
Southland – Los Angeles to Las Vegas.
Great Lakes Area Detroit, Chicago to Pittsburgh.
Northern California – San Francisco to Sacramento.
I 35 Corridor – San Antonio, Austin, Dallas, Ardmore, Okalahoma City to Kansas City.
Cascadian-Eugene, Portland to Seattle.
Megapolitan Areas will have certain characteristics in common. They will combine at least two existing metropolitan areas together. Each will total more than 10 million residents by 2040. They will have a similar physical environment. Have very good transport infrastructure and support. Goods and services flow freely from one urban area to another. They will also require a large geographic area that is suitable for large-scale regional planning.
It is true that some of these megapolitan areas have been affected by economic problems, but even CNN’s Money magazine agrees that these areas are some of the best for real estate development and investment. Why is that, and what should you look for when trying to protect your investment in these areas?
Of course, it is very important to be careful about the industries that support these megapolitan areas. Investing in areas related to the automotive industry or manufacturing may not be a good idea. However, the megapolitan areas of New York and Charlotte, North Carolina, have done very well in recent years because their dominant advertising, banking, and investment industries have better track records than these other, less trustworthy industries. Absolutely nothing is completely safe or 100% reliable when it comes to business and industry, but obviously one can use some common sense when it comes to investing in certain areas.
Megapolitan areas are often more desirable for industry and new businesses because they already have a skilled workforce and developed real estate. A company looking to build a large factory or set up a back office is unlikely to choose a desolate area, even though real estate may be more affordable. There is no population in this immediate area to support your business through staff, vendors, and sometimes even available roads and houses. This is one of the reasons that megapolitan areas seem to consistently and steadily attract established industries and businesses and emerging businesses as well.
If you’re looking for a solid real estate investment area, you may be drawn to more scattered areas because they’re more affordable, but remember that sometimes you get what you pay for. Instead, consider investing what you can in these established megapolitan areas. By using a little common sense and doing your homework, you will surely find that it is the right choice.
