Are you looking to sell your property in the United States in 2017? Well, you should know you could have a major buyer coming your way - Google! Yes, Google is one of the many Silicon Valley companies that wants to enter the US property market.
Google has invested heavily in San Jose and wants to create what is referred to as the “Google Village”. This is expected to be a gated community open only to the fabulously wealthy members of the Silicon Valley.
Google Village is expected to generate over tens of thousands of new jobs in the real estate industry. But that’s not the only thing – Apple and Adobe are expected to come with their own housing developments as well.
As of now, Google has taken over an area of 5 million sq. feet. The company plans to expand this further to 7 million sq. feet. Google has been making big moves in the real estate sector, and it is easy to see why the company has been doing this.
Google hires over 20,000 people every year. It is one of the fastest growing companies in the world. Such rapid growth creates problems of its own. The employees of Google need a place to stay. But with the cost of real estate in California spiralling, it is no longer feasible for junior and mid-level Google employees to buy a house or apartment in the Silicon Valley area.
It is the same with employees of Facebook, Apple, Microsoft, Amazon and Adobe – they may be the highest paid professionals in the world, but even they cannot afford to buy a house or apartment in California.
There is a massive housing shortage in the Silicon Valley area – especially in the San Jose, San Francisco and Palo Alto triangle Even in Seattle, home prices are astronomical.
There is hence a massive mismatch between demand for new homes and supply of housing stock. The homes that are available on the market are priced very high, with even two-bedroom condos priced at $1 million or more.
That’s why Google has taken the decision to make something of its HUGE cash reserves and invest in the real estate market in California. They have plans to invest in other states in the USA as well. One expects Google’s big rivals such as Apple, Microsoft and Facebook to come up with their own versions of the Google Village.
So, suddenly, the real estate market in the United States is expected to see hundreds of billions of dollars of investment – not from overseas investors such as wealthy Chinese or Russian buyers, but from the local technology companies.
This will certainly have a big effect on the real estate market for a much bigger slice of the population than just over-paid Silicon Valley engineers. Home prices are likely to shoot upwards and set a chain reaction. There’s going to be a lot of demand for properties in older neighbourhoods as all the big tech companies will now want to buy property in the USA fast.