The COVID-19 pandemic has shaken up all recent economic predictions, and real estate was not far behind. Like Commercial Real Estate (CRE) lost a major chunk of business due to remote work and social distancing norms, and travel restrictions. But in the same wave of the pandemic, warehouses and hybrid working spaces saw a rise in sales.
All of the new challenges the real estate industry is facing in 2022 also come with their own set of opportunities. Property managers and real estate owners need to be more industrious in finding them. Read this article to get a detailed understanding of what these challenges are and how you can turn them into business opportunities impacting growth.
Real estate Trends and Challenges
From proper technology selection in project management to recovering from the grilling effects of the pandemic, there are numerous rising trends in the real estate market. Here are the top 6 that you can not miss out on. You need to understand them and work with them or around them to convert them into business prospects rather than a roadblock. Here’s how.
Reviving from the pandemic
The pandemic has made people more aware of open spaces and the advantages of working from home. Most employees are now keen on permanently working from home. As per reports by Forbes, as many as 25% of all office jobs in the whole of America are set to go completely remote with their work by the end of 2023. This means that Commercial Real Estate and office spaces are bound to see a major dip in demand.
But that also means that these people are all staying home or looking for long stay workations. Providing a hybrid space where people can find leisure and work in the same space is a great way forward for real estate owners at this point. This idea of a hybrid workspace can be used in hotels with 'workation packages', office spaces where there is enough open space, or even multi-family homes where the properties offer common area activities for people to unwind post work.
Climate change makes an impact on real estate
In the two years of the pandemic, when people stayed home for long and saw the bright sides of lower pollution levels, they became serious about lowering the carbon footprint in the real estate business. According to CNN Business reports, the carbon footprint of the real estate industry alone is a whopping 49% of the global carbon emission. Both construction and building performance is part of these metrics. According to CNN Business reports, the carbon footprint of the real estate industry alone is a whopping 49% of the global carbon emission. Both construction and building performance is part of these metrics. Real estate property managers can do a lot from new plans to make real estate more sustainable to getting Energy Star appliances for the buildings and making them energy-optimized.
Real estate property owners can also get energy audits done by third-party providers to optimize the energy usage in their facilities and positively impact the ROI of their buildings. Not only will this make their buildings more sustainable and save money, but it will also help the environment in the longer run. More and more millennials are demanding better housing options that will allow them to have a more secure future and help the environment. You can also tap into this market when your projects are more sustainable and increase sales. Surveys confirm these market predictions, more than 83% of millennials are looking for sustainable homes as a long-term solution to real estate problems, and they are ready to pay more for such houses.
Affordable pocket-friendly housing is a concern
Affordable housing has always been a problem, and in 2022 it still remains a major concern. Pew Research Center survey says that more than 49% of Americans still feel that their local communities do not have enough affordable housing options for them to choose from. As the population keeps increasing and there is a lack of space, real estate owners and property managers need to rethink their strategy and leadership plans to make housing more pocket-friendly for all cross-sections of people.
From revamping old housing buildings to upscaling and reusing them for affordable housing to investing in governmental housing schemes, real estate owners can do a lot to better the housing scene in America.
Keeping up with PropTech is a must
The pandemic has made the world adapt to remote work and the latest technological inventions. Before the pandemic, the real estate industry was quite reluctant in using technology in business; human labor was the only prevalent way they had. Post pandemic things like virtual home tours, drone inspection of houses, and AI-based chatbots to automate interaction with customers in the real estate business are on the rise. Many companies are reaping the benefits of it. All of it can be done with the latest software usage from construction management to asset management, property management, and investment management.
Reusing and revamping properties is on the rise
Many old malls and closed commercial real estate spaces form the center of major cities but are closed down, and their existence is redundant. Many real estate investors and owners and now investing in revamping and reusing these commercial spaces for better business. Not only do these spaces need no new construction, but they also help to reactivate dormant resources that are a burden to the city resources without any use.
ESG is reaching its limit
Environmental, social, and governance are at a tipping point; it is no longer a luxury; it is a must-have for all real estate projects. Serious investments need to be made to bring about fundamental, sustainable changes in the market. Policies need to be changed, and new generation technology needs to be involved in moving forward with this.
Get the Right Real Estate Property Management Solution for Your Business
These trends are on the rise, but they are not here to intimidate you; you just need to take a closer look at them to understand the business opportunities in them.
At Assetsoft, we can help you in this journey with a fine technology real in real estate property management or asset management. Our technology experts can help you integrate the latest software like MRI, Yardi, Procore, Zoho, UiPath, and many more to streamline your work and automate most of your tedious back office work. To know more about our services, give us a call. Talk soon!