Real estate is big business! Or is it? With the advent of technology shaking up the real estate sector, it is demanding a drastic rethink in the whole business model. Operating under the banner of a small business. Or are you thinking about starting to trade in real estate? You need to think about what the changes in demographics and behavior will do to the industry.
Here are some hints as to where the market may go.
There will be a new type of consumer. This will force new ways of doing business in real estate. The increasing costs of everything show no sign of slowing down. So people are tending to shift towards renting or borrowing. This is instead of buying or owning them outright. The costs could generate revenues upwards of $335 billion by the year 2025. There is a split between catering for the young renters and the need to cater for the elderly. This is due to longer life spans will mean that predicting consumer trends will be a lot more difficult. The new factors that make up the demographics are now consumer personality, lifestyles, and values.
Real estate needs to be the solution, not the problem. The topic of climate change is becoming more ingrained in our consciousness. The real estate sector needs to address its role in contributing to the world’s carbon footprint. According to a report by the World Economic Forum, the real estate sector consumes over 40% of the global energy every year. 20% of the total global greenhouse gas emissions originates from buildings. It is estimated that there will be a 56% increase in building CO2 emissions by the year 2030. As well as a 7% increase in the proportionate share of global GHG emissions, which is expected by 2030. And across the world, buildings use 40% of all raw materials. The real estate sector is the largest global consumer of resources and raw materials. For the businesses that are starting up now, either on their own terms. Or by investing in a Real Estate Franchise. They being more conscious of your environmental impact is what you need to address to move forward.
Are your workers going to be replaced with computers? A lot of people seem to think so!
But they don’t think that their jobs will be impacted at all. While over the next few years, the real estate market won’t be overrun with robots doing our work for us. But there are some trends that will be coming over the next 20 years.
- Robot devices will perform many tasks quicker, safer and more efficiently than humans.
- The change in digital technology will change organizational structures. As a result, the jobs of the future will be more flexible and connected.
- The entrepreneurs of the real estate world will have to create their own jobs. So having the basic skills to be an entrepreneur and a leader, instead of a follower, will be essential.
- The aging workforce will push retirement back even further.
- Low-skilled jobs will be automated, and income growth shall be associated with educational and skill levels.
- The service industries will see growth. Social interaction and emotional intelligence will become more important.