Where to Invest in 2024: Unveiling Trends
“Where to invest in 2024” is a question that has lingered in the minds of investors since the fall. Recognizing the pivotal role that knowledge of upcoming investment trends plays in successful financial endeavors, this article is dedicated to exploring the promising trends set to shape the investment landscape in 2024. We will dissect them and uncover the compelling reasons behind the potential benefits of these financial instruments.
Sustainable Projects: Profiting Hand-in-Hand with Environmental Stewardship
Investing in sustainable projects is gaining widespread popularity as companies actively embrace sustainable development principles, which showcase not just social responsibility but also offer investors a steady income.
Recent studies reveal that companies actively incorporating sustainability principles have an average 12% higher market value. Notably, there is a growing trend among investors who focus on a company’s operational principles, preferring businesses that demonstrate responsibility by integrating Sustainable Development Goals (SDGs) not only into their corporate culture but also into business processes and technology, aiming to minimize environmental impact.
How Investors Can Benefit from Investing in Sustainable Ventures
Risk mitigation and enhancing long-term stability. Investors who get involved in sustainable projects face lower risks as these companies prioritize future-focused strategies and utilize modern technologies. Reducing reliance on volatile resources and adopting innovative technologies further fortify the business’s market position.
Economic advantages. According to December 2021 data, companies actively investing in sustainable projects demonstrated superior financial performance compared to those neglecting sustainability aspects. This stems from investors’ eagerness to actively participate in the positive transformations initiated by businesses, encompassing both environmental and social initiatives. Research done by HEC Paris revealed that shareholders show a willingness to pay an extra $0.70 per share for companies contributing $1 or more per share to charitable causes.
Social responsibility and reputational benefits. Investment in sustainable projects aligns with social responsibility, earning favorable reputational outcomes for both individual and institutional investors.
Real Estate Investments: Stable Investment Tool
Investing in real estate remains one of the least risky ventures, offering stability and continuing demand for housing that assures long-term security for investors. Over the period from 2017 to 2022, housing prices in major cities worldwide witnessed an average increase of 15%, evidencing the sector’s resilience and upward trajectory.
The driving force behind market stability is the upward momentum in housing prices
The fluctuation in housing prices across different regions of the global market has a major impact on the selection of investment objects. The majority of European countries demonstrate a consistent uptrend in housing prices, driven by factors such as low mortgage interest rates, heightened demand, and a limited supply of housing in central urban areas. This trend is particularly evident in Prague. In early 2023, house prices in Prague witnessed an approximate 10-15% increase over the past two years, including both residential and commercial properties. Experts anticipate the continuation of this upward trajectory in the short run, providing varied growth estimates ranging from 7% to 20% annually. Despite the divergence in figures, analysts unanimously agree that real estate prices in Prague are poised to go up, making the current period a profitable window for investment in this asset.
Real Estate and Green Ventures: How It’s Redefining the Game in 2024
In Europe, the Energy Performance of Building Directive No. 2010/31/EU (EPBD) is currently in effect. Based on this directive, starting from 2021, a pivotal requirement for new construction mandates adherence to “almost zero energy consumption” principles, embodying the concept of a “passive house.” According to the United Nations, buildings globally consume approximately 40% of energy, with one-third of greenhouse gas emissions stemming from real estate.
Therefore, investors engaging in projects in Europe in 2024 will, by default, be involved in ventures characterized by a high degree of responsibility. An exemplary project in this context is HOROMĚŘICE, with the construction of a residential building in the suburbs of Prague featuring 42 apartments set in a picturesque locale.
Existing houses predating 2021 must transition gradually towards becoming “passive,” entailing a reduction in their energy consumption.
Investors are already experiencing the advantages a of passive houses, as such properties command higher rental values, applicable to both residential and office spaces.
While real estate retains its status as a low-risk investment instrument for 2024, the emerging market dynamics of “passive houses” align these investments more closely with sustainable projects.
Conclusions
Throughout 2024, environmental matters will maintain their status as a paramount focus. This is why the prevailing trend for investors will center around projects that not only yield financial returns but also exert a positive influence on the environment. Engaging in such initiatives presents both economic and reputational advantages for both individual investors and large companies. Regardless of the specific niche or business venture, embracing the principles of the Sustainable Development Goals (SDGs) and mitigating the adverse environmental effects of operations is not only possible but also advisable.