The Evolution Of Real Estate: Technology Uber Alles
The entire real estate sector has seen drastic changes flowing its way since the beginning of this pandemic. Many are indeed looking for the next big trend within the real estate sector but, as far as we’ve seen, everything will be tech-related. Let’s dissect the next big things within the real estate sector.
Fintech For Financial Applications
Fintech has become quite a big trend throughout this pandemic and certain analysts have said that “Out of all the transparency these technologies will bring, the strongest impact will be on the turnover rate. Vertical market-networks are the next generation service marketplaces that will not only provide a platform for matching supply and demand but also industry-specific workflows for facilitating long term business collaboration.”
The global real estate market makes up more than half the value of all mainstream assets in the world. From that, residential real estate is worth around $190tr.
From that $190tr, roughly 0.5% or $1tr is being traded annually from which the commissions and fees are around 5% or $50bn. From this, just a 10% increase in efficiency would already release a potential revenue of $5bn. These are strongly conservative numbers and we can expect the turnover to increase to around 5% making the efficiency gains produce more than $50bn.
To work properly with fintech, companies need to start applying data gathering and management strategies to their acquisition processes. Companies within quick models such as commercial property auctions and residential property auctions have stated that data has been extremely helpful to turn around the pandemic crisis. Customarily, luxury real estate agents would tap their network to sell high-end properties, which call for a refined approach to marketing that often targets only a few thousand potential affluent buyers worldwide. Thus, the reach and strength of agents’ connections in the world of high-net-worth personalities easily break or make real estate deals.
The world of real estate is set to be prepared for data-ready strategies and other tech-heavy architectures in 2021. Fintech and data are just two of the biggest things that will happen to such sector in the next couple of years, therefore, if you’re ready and tech savvy, this is your time to shine.