Business Desk 26 Feb , 2024 02:25 PM GMT
Proptech sector expanding with supplementary tools for real estate firms.
Traditional real estate companies thriving with technology adoption.
Human element remains crucial in real estate transactions.
A development of new homes is shown in Middlesex Township, Pa., on Apr. 19, 2023. The U.S. economy and job market largely avoided painful fallout in 2023 from the Federal Reserve's relentless campaig
Jesse Sasomsup is the founder and president of Earnest Homes, a Los Angeles-based residential property driven by technology. Real estate is an industry known for having ups and downs—every year brings changes. Individual real estate professionals and firms must closely monitor these changes so they can adjust their strategies accordingly and continue to bring in business.
As we head further into 2024, there are five key trends expected to unfold in the real estate industry. The proptech sector, which offers various technological solutions for real estate, is rapidly expanding. While proptech companies cater to different use cases, they are seen as supplementary tools rather than disruptors to traditional real estate firms.
In the upcoming year, traditional real estate companies are predicted to thrive, especially as they adopt technology to streamline their processes. The human element in real estate transactions, such as local agents who understand the area and can empathize with clients, remains invaluable.
Despite some resistance to technology adoption in the industry, there is a growing trend towards leveraging technology, particularly with the rise of artificial intelligence. Tools like e-signatures, electronic contracts/forms, and multiple listing software are becoming more prevalent among real estate professionals.
Interest rates have impacted M&A activity in the real estate sector, with a decline in transaction volumes and values. However, it is anticipated that a reduction in interest rates globally will lead to a revival in real estate transaction activity in 2024.
NFTs are poised to revolutionize real estate investment by tokenizing assets and making syndication opportunities more accessible to smaller investors. While NFTs may not become the primary method of real estate investment, they are expected to attract interest from investors looking to diversify their portfolios.
Legal challenges in the industry, such as lawsuits related to commission practices, are prompting potential changes in how agents representing buyers are compensated. Industry stakeholders are advised to stay informed about these developments to navigate the evolving landscape effectively.
Staying abreast of industry trends and taking proactive measures will be crucial for real estate professionals and firms to succeed in 2024.
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