Although it is as an industry that appears to constantly be in flux due to uncertainty, real estate has proven itself to be an area in which where trends can quickly emerge. With technology taking every industry by storm, it should come as no surprise that there are a whole new set of trends taking place in real estate. If you’re looking for opportunities to capitalize on for investments, then it’s best to ride the tides use the trends to your advantage.
Technology plays a major role in the rise of the newest real estate industry trends. On that note, there are two particular pieces of technology changing the industry as we know it: Data and applications.
From data analytics to machine learning, there is a wide array of different ways that data and applications can be applied in real estate. It isn’t uncommon to witness real estate transactions take place with blockchain or to attend open houses that take place through VR channels. Thanks to recent trends in data, applications, and real estate, the extensive use of technology in all things property-related has begun to turn into a relationship so effortless that it now seems like one can’t function with the other.
How, what, and why does technology affect real estate?
To understand how current trends are affecting the industry, let’s look at five different areas in which real estate is impacted by data and technology:
The retail sector has changed tremendously over the past few years, with technology creating an abundance of opportunities for all types of landlords. The scope of these new opportunities spans far and wide, creating openings for backfilling to take place with anchor tenants and increased foot traffic through non-retail tenants. Currently, the retail sector has been enjoying the benefits of data analytics. Some of these benefits include the creation of new rental models, generation of valuable tenant insights, and improved business operations.
2. Single-family housing
Due to the increased demand for single-family housing all over the country, most local governments and real estate agents face difficulty in maintaining an adequate supply. Contrary to the claims of low prices made during promotions, single-family housing continues to rise in price due to demand, scarcity, and rising interest rates. With the help of data, the cost of single-family housing has stabilized as agents have been employing data to source out more flexible and budget-friendly options.
Despite rising mortgage rates, stricter rules, and speculations about tax changes, the demand for condominiums has been more or less stable. As a precaution, however, most experts are gearing up for possible downturns through data analytics. That said, it’s safe to assume that condos are still very much in the green because their value remains intact with population growth and economic expansion.
When it comes to occupancy data, office spaces have taken quite the hit lately. After all, remote working has continued to rise in terms of relevance. It is important to note that technology has paved the way for the co-working trend. This explains why so many office spaces are transitioning into co-working areas to stay profitable. Forecasts state that co-working spaces will soon take up as much as 30 percent of the real estate market, which signals one thing in particular: it’s time to invest.
Thanks to the rise of e-commerce and the online retail marketplace, industrial spaces such as return and distribution centres have seen a staggering increase in demand. For the first time in years, rental rates have significantly spiked, making it the prime piece of real estate to go for in this era.
Technology affects the real estate industry in countless ways, most of which are more beneficial than they are harmful. By staying on top of the trends and using them to your advantage, you can make the right investments and purchases in the real estate market without having to make costly mistakes.
If you’re looking for a Real Estate Agent in Windsor, get in touch with us today! We’re happy to help find the perfect property for you.