Navigating the Future of Real Estate
The real estate industry is at a crossroads, with technological advancements, evolving consumer preferences, and post-pandemic priorities shaping its future. In this rapidly changing landscape, it is more important than ever for real estate companies to have a competitive intelligence (CI) program in place.
Evalueserve's real estate competitive intelligence monitoring program consistently tracks competitors, market trends, and other external factors to provide key insights to stakeholders, helping them make informed decisions and ensure long-term success in the dynamic real estate market. Let’s have a look at some of the emerging trends that we identified through our CI program.
Three Emerging Trends
1. Smart Cities as Sustainable Solution for Urbanization
As urban populations continue to grow, smart cities will play a crucial role in addressing challenges related to sustainability, infrastructure, and quality of life by leveraging technology to optimize resources, reduce waste, and improve the overall living experience. For example, smart transportation systems reduce congestion and emissions (e.g., Copenhagen's smart transportation system reduced congestion by 20% and CO2 emissions by 15%), smart grids reduce energy consumption and improve reliability (e.g., San Diego's smart energy grid reduced energy consumption by 10% and energy costs by 5%), and smart water systems reduce water consumption and improve water quality (e.g., Singapore's smart water system reduced water consumption by 30% and significantly improved water quality).
2. Adaptation to Remote Work Revolution
Three and a half years after the start of the pandemic, return to office continues to challenge businesses and economies around the world. According to McKinsey Global Institute, the shift to remote work could erase as much as $1.3 trillion of real estate value in big cities around the world by 2030. To adapt to this new reality, stakeholders in the real estate industry are rethinking their approach to office spaces by repurposing existing buildings, with companies like Slack, Trello, Dropbox and Uber investing in flexible workspaces, and focusing on amenities that cater to the needs of remote and hybrid workers.
3. Growing yet Challenging Rental Housing Market
The rental housing market is projected to register a CAGR of 7.8% between 2023 and 2030, driven by factors such as urbanization, changing lifestyles, and increasing demand for flexible housing. However, it is likely to face several challenges and risks, including economic downturns, regulatory and legal risks related to rent control and tenant protection, maintenance and property management issues etc. In the United States, the average mortgage rate for a 30-year fixed loan has increased from 3% in January 2022 to over 7% in November 2023. This increase in interest rates is likely to make it more difficult for people to afford to buy homes, which could lead to increased demand for rental housing. To succeed, stakeholders will need to stay informed about regulatory changes, adopt innovative property management solutions, and focus on tenant satisfaction.
In conclusion, to stay ahead in the dynamic real estate market, stakeholders must leverage competitive intelligence to identify new market opportunities, assess the competitive landscape, and develop strategies to differentiate themselves from competitors and make informed strategic decisions.
Evalueserve's CI solutions offer real and immediate access to insights on market developments, trends, and competitors’ actions, thus helping you uncover new possibilities and make informed decisions.
