Gateway Market

 A Gateway Market is a designated market area or a city/ metropolis which is considered the ideal location for real estate based on its population, the demands of its residents, economic health, and diversity. Gateway markets are mostly populated by youngsters and millennials.

 

Gateway markets are considered the safest bet for core and core-plus investment strategies in newer properties that generate stable rental cash flow over a period of time. Real estate investors in gateway markets can also trade their assets for greater returns when the time is right for their exit.

 

Therefore real estate investments in gateway markets are considered to be safer versus investing in secondary and tertiary markets. However, due to its density of population and competitive arena of real estate transactions and development,  gateway markets are often the subject of stringent local government regulations and higher construction and maintenance costs. Therefore, gateway markets generate modest returns versus opportunistic and value add investment plans.

 

In the US, New York City, Chicago, Los Angeles, Boston, Seattle, San Francisco, Houston, Miami, and Washington are some of the examples of prime gateway markets.

This help page and the information contained herein is provided for informational and discussion purposes only and is not intended to be a recommendation for any investment or other advice of any kind, and shall not constitute or imply any offer to purchase, sell or hold any security or to enter into or engage in any type of transaction.

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