Trends in 2020 the Real Estate Industry Should Keep an Eye on
2019 was a terrific year for real estate, with the industry growing in myriad aspects. However, now that 2020 is here, it is time again to brace for what it will bring for the real estate industry. You see the latest trends, which allude to the developments in a particular sphere, are crucial to not only help the business crack optimum growth but also prepare to successfully deal with any adverse events in the industry to ensure minimal impact on the business.
So, yeah — real estate industry trends for 2020. The global economic slowdown has taken a considerable toll on the market, but there are myriad other factors that have been the saving grace. For starters, the market has witnessed the seen growing interest and business from a new category of house buyers: Millennials. Other than that, the industry has also seen a shift in the type of properties the market is investing in and much more. As you can see, this year has a lot in store for the real estate industry and any business that intends to stay competitive must take cognizance of the trends. To help you get started, we have listed some of the most important ones below.
1. Artificial Intelligence: The world and the technologies within it have observed unprecedented growth over the past few decades. And one of the most significant results of this evolution is artificial intelligence. This highly advanced technology has long proven its mettle as one of the most reliable tools available in the market in general. And, in the context of real estate, AI has much to offer, thanks to the goldmine of data the industry has gathered and has access to. While that provides a plethora of opportunities, some of the nascent uses for AI in real estate include digital assistants, fortifying internal systems, and more.
2. Pressing need for economical housing: The divide between renting and purchasing is still vast, with as much as 59 percent of the market demand still going to the former. This challenge has become further pronounced because house prices continue to skyrocket. And there being no relief in sight in that regard, expect demand for rentals to grow even further.
3. Prices will grow at a slow rate: Unfortunately, the time when home prices were increasing at a rapid pace, i.e., 2017–2018, is long gone now. It can be chalked up to a handful of factors, including the general economic situation, which has resulted in much insecurity among both house buyers as well as those looking to sell them. But this is somewhat set off by a small but significant growth in the demand for construction of new homes.
Real estate property management is a complicated endeavor that everyone knows. But with the insight gained from understanding the current trends and using the latest technologies on offers, such as artificial intelligence, machine learning, and more, the task is rendered substantially simpler if not entirely so.
