Estimated Real Estate Industry Size Today:
Estimated Industry size in the Future:
Why it’s ripe for disruption:
With information at the fingertips of anyone with a smartphone, the real estate industry has been put out a bit by the declining need for human assistance. More and more people are feeling comfortable in selling their own homes and buyers can receive dozens of virtual home tours from their couch.
Real estate agents are slowly becoming obsolete. Many still rely on outdated marketing tactics like leaving fliers in neighbourhood shopping centres or simply placing their name and photo on properties they’re representing. As technology makes it easier for industry novices to buy and sell solo, the real estate industry needs to find ways to become relevant again. But, industry professionals who see the value in technology advancements can remain an asset to their clients if they welcome the new technologies and meaningfully implement them in their practices.
Commercial real estate is a facet of the industry in which startups are making a noticeable impact. With large transactions with many moving parts, companies like Honest Buildings are filling a gap in the operational process. Connecting developers and owners to well-vetted vendors, choosing the right vendor is no longer made based on gut feelings but rather proven track records of success and an array of pricing options.
Top Trends to Watch:
- Use of technologies such as drones and 3D viewings to create a captive audience within their client base.
- Implementation of Big Data practices into commercial real estate firms.
- Demand for real-time data access from both commercial and private real estate clients will nudge professionals in the industry to embrace the technology providing these analytics.
- Mobile technology to keep agents connected at all times will be more widely used.