There are emerging trends and predictions in every sector. Whether you speak about FMCG, health, logistics, or fashion, there is something changing in these industries every second as we speak. The real estate industry is not an exception! Although it was hit by big turbulence in the last couple of years, it is safe to say that the storm has been weathered relatively well. Thanks to technology! With the rise of digital tools and trends like virtual reality, the internet of things, and artificial intelligence, the realm of the real estate market has changed drastically in the last couple of years.
Homeowners, agents, lenders, investors, property managers, and entrepreneurs are accepting the new reality of digital living to naturally stay on top of changing trends and future predictions. You can check it right here on Tenerife Estate Agents about how the face of real estate is changing. So what developments and trends should be expected in the coming years? Let us deep dive.
Real Estate Trends and Predictions To Look Out For:
- Real estate goes digital: From “virtual staging” of properties to getting in touch with property managers to researching mortgage options, the pandemic has accelerated real estate digitalization. Due to the rising competition and ongoing pandemic, buyers and investors are browsing and purchasing properties without stepping foot outside. There are virtual property tours available (shot and edited in 3D) that can give the feeling of being inside the property without even visiting. Due to social media, you can also learn about new neighborhoods, stay in touch with locals, and keep up with neighborhood events.
- Automated work: Real estate companies are using automation tools to manage various commercial and residential properties at the same time. With these tools, you can streamline repetitive tasks, speed up internal operations, and reduce manual work. As a result, as a property owner, you can operate at much less expense and minimize human errors. Automation helps in clients and contracts management of existing properties, like answering potential clients, nurturing future leads, and sending follow-ups. Real estate automation can also help you to streamline financial management and reduce paperwork like collecting rents, invoices, and payments. It can be especially helpful if you talk to many vendors and clients at the same time.
- AI-enhanced analytics: The major advancements of AI in real estate technology has made property investors find and analyze amazing deals at competitive rates and tremendous speed. With the development of quantum computing AI in real estate, the market is forecasted to expand from $470 million to $1,765 million in 2026. We can expect to see more PropTech startups and companies apply for algorithm quantum as this technology develops.
- Moving from cities to the suburbs: The pandemic has witnessed a striking migration rate from major cities to the countryside and suburbs. The trend of migrating out of big cities is expected to persist for the next 5 years. Two root causes have been identified behind this real estate trend- choice and necessity. The affluent crowd is relocating due to choice, whereas people who can’t afford the big city living are moving out of necessity.
- Virtual reality is the future: From virtually visiting properties to acquiring them, virtual reality is digitizing the whole process of checking out and acquiring real estate properties. Investors and buyers can experience live property tours, 360-degree photos, and 3D walkthroughs while touring different properties. It not only reduces the operational time for them but also gives a preview of before and during construction. All of these things can be availed of while sitting in the comfort of their homes using their phones.
- The rise of sustainable real estate: As people are becoming environmentally conscious, there is a sudden shift towards eco-friendly construction and designs. There is a rising demand for energy-efficient buildings made out of sustainable materials. For instance, one can expect to find more green spaces, properly insulated doors and windows, and the use of energy-efficient lighting and appliances.
Real estate is one of the fastest-growing industries in the world that is steeped in opportunities for everyone. With so much happening every second, this industry is embracing digitalization and technology. Whether you want to invest in properties and earn from them or want to become a successful real estate entrepreneur or property manager and make a great career out of it, there is something for everyone. That being said, to remain relevant and on top of the competition, it is crucial for everyone to stay up to date with the latest trends and future predictions of the real estate market. It can help you to improve your property investment decisions, management techniques, and technical developments.