It’s no secret that the real estate industry has transformed in a big way over the last few decades. In fact, buying a house today is much easier than it was some 30 years ago. However, the future of home and real estate investments remains optimistic if the past anything to go by. Something big and good is coming. We know that there is always something disruptive that comes and changes the way things are done, and it’s coming soon. For instance, the internet and industry-specific technology have been two of the most disruptive factors in the past two decades.
But we can see the signs of other disruptive factors in the near future. These are key factors that are going to be catalysts for the coming changes. We are going to look at these factors and see how they likely to the landscape and the future of home and real estate investments.
Here are factors that will shape the future of home and real estate investments.
Industry-Specific Technology For Affordable Homes
Technology is, without doubt, one of the factors that have transformed the real estate industry of the last two or three. From the extraction of raw materials to the building of homes, technology has played a significant role. Today, most contractors in the real estate industry are replacing human labour with machines. That’s why the cost of building homes have been on the declines over the last years. We expect the same trend to continue and better the industry even further as the machine technology keeps advancing.
Today, technology is being used for the production of cheap materials for homes construction. Unlike the past few decades, the cost of raw material has reduced especially for the construction of low-cost homes. This is a trend that will definitely continue, and we are going to see better quality but affordable building materials. The impact in the real estate industry will be massive, and it will open up the industry to a larger market.
Demography Factor in Real Estate Australia
The future of home and real estate investments is also going to be determined by the demographic factor. In the past few years, the number of middle-class Australians, especially in the cities, has increased tremendously. These are the target market, and their bulging number will affect the future of home buying in a great way. The large and consistent number of the people coming into the middle-class bracket simply means the real estate industry growth will continue on an upward trajectory.
However, this middle class comes with its unique characteristics. Most of these guys are young people who are tech-savvy. They are highly informed and thus the packaging and approach this market will have to be very different. The quality and the structure of the homes will change significantly to accommodate the needs generation in the middle class.
Customer Driven Home and Investment Packages
For the longest time, the real estate industry has remained very rigid to changes especially in addressing the demand aspect of the market. From design to details, they have been dictated by the home provides for the longest. That has been one of the limiting factors, but things are now changing. The start-ups in the industry are extremely versatile and are selling packages that resonate with home buyers.
Buyer or customer driven home packages will be the future if the real estate industry. Home buyers of tomorrow will take choose from available options but will say what they want. These are the kind packages that start-ups are offering and it is the future doing business. The approach will change the way which people buy homes and also the customer’s satisfaction level. Therefore, going forward, there will be a dynamic shift in how the real industry transacts its business with the customer at the centre dictating what they want.
Artificial Intelligence (AI) Impact in Real Estate
The hype about AI technology has spread across almost all industries. The game-changing technology is expected to revolutionise the real estate industry by making almost everything ‘smart’. From the construction, managing, organization to the designing of the homes, there is a lot we expect to change in the future. Already, there are companies around the world that are already using the technology, and the result has been. Once the technology is in the mainstream, then we can expect the buying the house and real estate investments to ease. Therefore, going ahead into the future, we are in for more smart homes and smart way of doing business in real estate.
The blockchain is a disruptive technology that is promising to streamline and transform mainstream business, and that includes the real estate industry. It is a technology that will make it easy to transact in the industry as all deal will be done on an open network. The technology promises to enhance the transparency in the industry by keeping the information safe and free for all those connected to the network.
There are various that Blockchain will change the future of home and real estate investments. First, transactions will be person-to-person or P2P based hence eliminating the needs for agents brokers. It will also make it possible to sign a contract on the platform thus removing the need for lawyers. Therefore, buying a house and other real estate investments be cheap; hence the overall cost of homes will come down.
Social Media Platforms and Marketing
Internet and more so the social media will remain a force to reckon with. Almost every real estate company has social media platforms for marketing purposes. The beauty of this platform media is that almost everyone in the world has an account. That’s why it will be a powerful factor moving forward. We expect more sales of homes and other real estate investments on social media where the seller and buyers can meet freely without brokers or agents. Therefore, with this tool, buying and selling of homes will not easy and cheaper.
These are key factors that will shape the future of home and real estate investments. We can see signs of some of these factors, already and we’re just waiting for them to fully fledged. However, we cannot rule out new disruptive factors that could turn around the entire industry. So expect anything.