During the last decade, the Phoenix metropolitan area has experienced a 33 percent growth in population, adding an additional 1.28 million people, making it the fourth fastest growing metropolitan area in the United States.
The predicted growth rates for Arizona by the federal and state government expect that broadly between 1.5 million and 3 million people will move to Arizona by the year 2020. It is also expected that by the year 2040, Maricopa County will be the third largest metropolitan area in the USA. The fact is, such a population increase will only increase demand for housing stock and should therefore see home values increase. American real estate investors who would ordinarily be playing with venture capital and putting money into promising startup ventures at this moment are sitting on the sidelines, flush with cash, waiting for the direction of the market to become more clear and the much vaunted economic recovery to gain momentum.
Due to the shortage of investment at this time there are a variety of real estate projects that may not have local financing available, therefore possessing high potential for investors. Now is the time to consider investing in Arizona, more particularly Phoenix, and to consider commercial real estate as that investment. With people across the U.S being attracted to the Sun Belt and Arizona, the economic outlook is particularly bright, and as the U.S economy continues to improve, there will be a sustained economic recovery in the region which bodes extremely well for property prices. This makes it even more important to consider investing now before the market rises in order to maximize future returns.
There is of course no guarantee that prices will rise, but it is becoming increasingly likely as the population grows, the economy improves and the demand for commercial and residential property rises.
Now is the time to take an equity position in properties, especially raw land and undervalued properties in the Northwest and Southwest part of Maricopa County. The development is flowing in those two directions. There are opportunities to refinance stalled real estate projects that have run out of money. There are companies that need a capital influx, high tech firms, and startups for whom you can buy real estate to lease. Now is the time to invest in Arizona real estate that is undervalued. Remember, all these businesses and real estate opportunities are in the safest place in the world, Arizona.
Source: Look Inside Realty – lookinsiderealty.com/whyinvest.html