Since its recovery and stabilization following the housing market collapse in 2007, the real estate industry has undergone considerable change driven by technological advancements and significant demographic shifts. While these changes together have resulted in the growth of the real estate sector at an unprecedented rate, the real estate cycle will inevitably run its course and lead to a real estate downturn at some point. As a result, brokerage firms and realtors must study the trends and respond proactively to maintain a sustainable position in the highly competitive real estate market.
In today’s collaborative economy, real estate is not just about asset management. Instead, rapid urbanization and shifts in consumer behavior have created a more user-centric environment where growth-oriented organizations are using huge volumes of data available to them to deliver ‘real estate as a service.’ In addition to this, to meet the needs and demands of today’s increasingly more aware and empowered customers, real estate developers are feeling compelled to develop infrastructure that promotes and protects the health and wellbeing of the occupants.
Technological advancements and more ubiquitous and transparent access to data have made online leasing/buying more cost-effective. Computer access has not only improved user convenience but has also threatened the long-term market monopoly of traditional brokers. To stay competitive, real estate brokers are making dramatic changes in how their business operates and are partnering with technology-driven startups to stay ahead in the game.
With improved employment opportunities and increasing household income, housing demand has increased considerably. While this presents an opportunity for real estate developers, they face significant challenges in fulfilling the customer’s needs due to labor shortages, permit issuance delays, and regulatory issues. To meet these challenges while maintaining revenue margins, real estate developers will be required to study the current and upcoming real estate trends carefully, and come up with a long-term strategy to bridge the demand-supply gap efficiently.
Preparing and responding to changes in their competitive environment, real estate companies need to reinvent their strategies. While investment in new technologies and partnerships with startups can help real estate developers and brokerage firms respond to these changes, improved processes and insightful leadership are two long-term solutions to problems currently faced by the real estate industry.
At Allen Austin, we understand that executive search and leadership development can be one of the most challenging yet high-value aspects for any real estate organization. With our deep industry experience and knowledge of executive search, we assist real estate companies in solving their human capital needs and hire the right talent that can drive their long-term success. Utilizing our business insights, skills, and tools, we develop a comprehensive executive search and leadership development strategy that focuses on improving candidate retention and helping a company achieve a greater return on investment in human capital.