A constant factor with people and societies is that change is a constant factor. Sometimes the change is for the better but never the less change has to happen all the time. Here we are looking at how changes in the way businesses are conducted in the real estate business is coming upon us.
- A shift towards generating revenue
With the relative smaller timelines that people have towards the concept of money, it becomes imperative that returns in investment are realized sooner than later. This has given rise to a market that tends to seek returns without having to spend much more resources in possessing the properties.
2. Bringing back values in trade deals
As the world gets more digitized, it soon comes to a point where human values are not given their dues. But of late, the realization that an impersonal approach cannot work towards establishing a long term relationship has lead to better people to people relations as far as possible.
3. Making optimum use of crowdfunding
One of the most happening spheres of fundraising is real estate crowdfunding. Rather than go in for the massive inflow of funds, the more appropriate method is to realize smaller amounts and in rather smaller time frames as well. The massive power of groups of people can be better utilized in this manner than most other options.
4. Using the networks
Be it the modern-day businesses or personal relationships, one of the key areas of performance is the networks that people create. It works to the advantage of buyers and sellers of property to seek out the strengths in networking with each other. At the same time, the power of personal relationships must not be taken for granted.
5. Building brands
There are strong reasons to stick to and to build up brands. Over the long term, it is the power of branding that is going to keep a person in the markets far longer than an entity without a branding power. Building brands is a slow process and once set into place tends to be able to leverage out the space like nothing like it before. Even a niche brand does have its strong recall and set of people that have managed to call it their own.
6. The role of Artificial Intelligence
Increasingly there has been a tendency to introduce greater autonomy in dealing with real estate deals. In part, it has to do with the role that computers and computing have come to play in securing real estate deals. Most systems are much more reliable than ever before and few people can compete at a larger level with an autonomous system like the computer or AI.
7. Greater conveniences
As has been observed in the past, what had been seen as luxuries has over a period of time attained the space of necessity of use. This trend is going to get increasingly popular as time passes by and more people tend to expect the present day luxuries as normal acceptable items of homes and offices of the future. For instance, a swimming pool used to be considered a luxury item till some years back but there is hardly any real estate development that does not use a swimming pool these days. So this is a tendency that is going to be strengthened as time passes by.
8. The role of data
In the days of yore, data did not play an important role as it does at the present. But increasingly data has played a significant role and would continue to do so into the future as well. One of the features of data at the present is that it is increasingly easy to have access to reliable data and at an affordable cost too.
9. Rising interest rates
When compared to the days past, it is seen that the interest rate regimes are rising all the time and would continue to do so. This means that for a quick turnaround projects, people would go in for cash deals than have it financed mostly.
10. Involvement of property owners
Of late, rather than buy out a piece of real estate to have it developed, the trend for property developers is to enter into a co-development arrangement with the actual owners of the property. This means a large sum of money can be saved in the buying of the property for development and greater flexibility in the management of projects.
Conclusion
Few people in the real estate industry would refuse to admit that there are no changes happening in the area of business in the recent past. What is all the more significant is that the changes are occurring at a faster pace than ever before. If past indications are a precedent, then future ventures would have to be dealt with in a different manner as compared to earlier times.