What next for the real estate industry?

Real estate refers to property such as land and other improvements like roads, buildings, fixtures, structures, and utility systems. When one gets a property right, they can make improvements to the land. There are four types of real estate: land, residential, commercial, and industrial.

Over the last few years, the real estate industry developments have been described as both negative and positive. For instance, the prices of real estate properties have been rising due to different economic and political factors. And since many people depend on the global real estate market, any downturn in their value can make many lives harder while an increase will enrich those lives.

The market for homes, apartments, buildings, and parcels of lands is also increasing, and so does the cost. But like other industries, the future of this industry is paced on emerging trends.

Predictions on the Future of the Real Estate Industry

1.Rent Auctions

How does a landlord set the rent? Well, they usually guess the market rent, then uses it as the initial rent for potential tenants. But did you know that someone may be willing to pay $800 while another will be glad to pay $1200 for the same apartment?

In the future, we expect the landlords to offer rent based on bids. A South African startup company has launched this service, and they provide rent management services to landlords enabling them to receive bids from different prospective tenants. Homes that are less desirable and have fewer features will have lower bids and fewer prospects. On the other hand, units with high demand will receive much higher bids and also ensure that the person living in them is enthusiastic about being there.

2.Real Estate Agent

The growing disconnect between real estate agents and homeowners has a significant impact on the industry. For starters, many homeowners are torn between selling the property by themselves or looking for an agent to help them list it. But agents are still important, and they offer excellent services and value to the homeowners. They assist them in navigating the turbulent local market and negotiating for better prices.

A homeowner can easily mess up when selling their property. With an agent, they’ll be able to sell faster and even find many competent buyers ready to spend more on their property. But going into the future, many homeowners are opting for online listing services than traditional agents.

According to Lisa Edwards, the director of ForSaleByOwner.com, most of today’s homeowners want more control during the buying or selling of their property. In the 2015 season, the company registered a 57 percent increase in sellers of different real estate properties. And considering these online listing services charge as little as two percent for their services compared to agents who take home over 20 percent, it’s no secret that the modern homeowner is opting for online help in selling their property.

3.Integration of Virtual Reality when buying Long-Distance Real Estate property

Currently, many prospective customers are wary of buying an unseen property until they see it in person. But with virtual reality soon, buyers will be able to view different aspects of the house in detail, including design, furniture, and even décor. Besides, prospective buyers will be able to scan through hundreds of homes in a real estate agent office until they find one that suits their needs. And virtual reality can transform the global real estate market enabling customers to buy property confidently from any part of the globe.

Bottom Line

The real estate market is evolving due to current trends and other factors. Besides, technology is also advancing, and homebuyer demographics are slowly changing the destiny of this industry. These factors have left many investors confused about the future of the real estate industry. But these predictions will take place gradually, and technology will be the primary shaper of these trends.