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The pandemic brought change to the real estate industry like nothing else. Not only were social justice and safety and wellness brought to the forefront; but concerns about economic uncertainty grew as well.
Office vacancies are up, as 94% of employees continue to work at home, and experts see overall real estate prices falling 5% to 10% in the next few years, but 60% of professionals believe office tenants will find a way to make better use of their spaces while the pandemic lingers on. Despite the economy, real estate has seen an influx of new jobs, people, agencies, and technology, which could ultimately make a highly competitive industry even more so.
In order to stay competitive, real estate professionals are finding it necessary to take advantage of specialized tools for the industry, such real estate management and mobile marketing software, and to use social media to reach more of their target customers. Since millennials, according to the National Association of Realtors, makeup 65% of first-time home buyers and a portion of new business owners, firms may need to cater to this tech-savvy market segment.
In a recent survey (Deloitte, 2021) of real estate professionals, 56% of respondents agreed and 26% somewhat agreed that the pandemic “exposed shortcomings in digital capabilities” and “affected plans for transformation.”
An additional survey (Deloitte, 2021) of 200 CRE senior executives—owners/operators, developers, brokers, and investors—noted key challenges to implementing technology.
While 43% of real estate industry experts “expect to see an increase” in technological investments over the next year, only 41% of survey respondents said their company is preparing employees to use such technology and tools. One-third of respondents agree or strongly agree they have the “resources and skills to operate a digitally transformed business.” Less than 50% consider digital experience a core competency.
Looking ahead, real estate is poised for growth. And so are the innovations that improve the buying and selling experience.