Ecommerce has become so big that there’s a chance we’ll soon be referring to it simply as commerce. There’s a future scenario in which everyone orders everything they need online, and there’s never any need to venture out to buy goods. The ecommerce projects support this prediction too, with the overall market size expected to reach over $2 trillion by 2030.
The overwhelming effects of ecommerce are now being seen in other industries, such as real estate. There’s been a surge in interest in transforming buildings into warehouses to keep up with the rising demand.
How Has Ecommerce Boomed in the Baltics?
The Baltic region has reflected other parts of the Western world in the rise of ecommerce over the last few years, and revenue reached US$2.7 billion in 2023. Lithuania is the largest market, and it makes up about 45 percent of the total Baltic ecommerce industry.
There are countless reasons for the ecommerce boom, with the spread of high speed internet being a major factor. There’s also been an increase in people working from home, so there’s a greater need to have things delivered. People are now ordering everything from food to clothing, and the efficiency of the industry is leading some people to eschew physical shopping completely.
The great thing about the ecommerce sector is that it’s still just the tip of the iceberg. Yes, a lot has changed and evolved since Jeff Bezos first started selling books from his garage, but there’s plenty more to come. Thanks to the integration of technology such as drones, there’s going to be a rise in speedy deliveries over the coming years. At some point, there’s a chance that people will be able to order anything and receive it within an hour.
What Does This Mean for the Real Estate Market?
The rise of the ecommerce industry has impacted the real estate market massively in the Baltics, mainly because there’s a much greater demand for storage space now. There’s certainly an argument to be made for investing in properties that could be used as warehouses now, as the ecommerce market is going to get bigger.
Anyone who wants to get ahead of the boom could find that selling existing properties to purchase buildings for warehouses could be the way forward. It’s easy to sell a house fast nowadays using online tools, which can furnish you with the cash within a week. All you have to do is answer a few questions to get a speedy cash offer, and this money can then be quickly reinvested in real estate elsewhere.
If drones become the future of ecommerce and start delivering everything to people, they’ll need to be plenty of small warehouses scattered around to have the stock ready to go. This is why the ecommerce real estate market could blow up in the coming years.
Even though ecommerce is already booming in the Baltics, it’s still wise to get into it on some level. Other than starting an ecommerce business, buying real estate that could be used as warehouses would be an excellent move.
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