Trends Changing the Real Estate Landscape
We’ve witnessed significant improvement in technology the past few years, especially in areas like big data and artificial intelligence. These technological developments have been adapted in industries like real estate.
In fact, it’s likely you’ve heard of terms like smart homes. These innovations are changing the real estate industry, benefiting not just buyers but also sellers.
Technology is fueling most of the trends expected to affect the real estate industry in the not-so-distant future. The following are four trends that will change the landscape of the real estate sector in the coming years:
- Virtual tours for prospective customers.
Thanks to technology, realtors can reach out to potential buyers wherever they maybe. Virtual tours can allow them to show every corner of a house or property for sale if it is physically impossible to tour clients. With virtual tours, a Chinese businessman looking for houses in Canada doesn’t have to take a plane to see the properties up for sale. All he needs is to go to a website of the realtor and he can get a virtual tour of the house that’s being sold.
- The rise of smart homes.
Smart homes are houses that incorporate hi-tech automation systems that provide advanced monitoring and control over the functions of a building. For example, a smart home owner can control lighting, security, temperature and door and window operations.
These hi-tech homes are becoming the toast of the real estate industry, and for good reason. One survey conducted by Coldwell Banker Real Estate that nearly 5 out of 10 American homeowners have plans buying, or are presently living in smart homes. Moreover, 7 out of 10 people who own smart homes say they would want to buy more smart home products.
- Robots taking over the real estate profession.
Robots and computers will soon take over the jobs in the real estate industry. A survey conducted by Pew Research Center showed that majority of the respondents believe that real estate professionals would lose their jobs to robots in 50 years. Robots can perform tasks of humans not only more efficiently but also more safely. Experts also foresee a future where real estate professionals will have to create their own jobs, requiring entrepreneurial skills and aptitude.
- Office spaces will become cheaper.
Freelancing will continue to become widely accepted in many companies. A recent study by Upwork showed that 35 percent of Americans are doing freelance work. Companies, too, are becoming more tolerant with work-from-home arrangements.
These developments are expected to affect the demand for office spaces. In turn, it is possible that office space rent will become cheaper in the future.
This is a trend that we’re starting to see now. In India, office space leasing dropped by 2 percent in the first half of 2017 with experts attributing it to layoffs by tech firms which are agreeing to work-from-home arrangements.
It’s even possible that office spare rental prices in mature real estate markets like New York and London would drop if and when technology continues to develop.