Executive Search & Leadership Advisory
The disruption wrought by the global financial crises left almost all industries violently upended and hammered. The real estate sector, too, experienced the seismic effects of the crisis. While real estate transaction volume has rebounded, the development sector continues to experience reverberations as developmental activity remains low.
In addition to the diminishing trust of investors in real estate, there are a number of factors that continue to plague the growth of the real estate development sector. Some of these include the new technologies, project management and delivery methods, and evolving workforce management trends that are expected to impact and reshape the development sector.
The shortage of skilled labor has remained one of the primary concerns for the real estate development sector. The global recession forced the experience construction workforce to leave the industry for other jobs. While the real estate sector is gaining pace, a significant portion of these workers have not returned. In addition, increasing interest of millennials in tech-based industries, combined with an aging workforce, is likely to worsen the dearth of workers that pose a major challenge to the real estate industry.
The uncertain geopolitical situation is a major risk for the long-term success of real development companies as well. Although the Trump administration has promised to cut regulations and invest heavily in infrastructure, there is still uncertainty and restlessness among real estate developers. In addition, possible trade conflicts with China, Canada, and other countries are likely to raise the prices of building materials and increase construction costs as well.
Increasing interest of both homeowners and businesses in offsite construction is another trend that will impact the real estate development sector in coming years. Also known as modular or prefab building, modular construction is not only more time- and labor-efficient than the traditional construction method, the fabrication of a module in a factory allows better quality control as well. Real estate development companies that want to stay competitive must build their expertise in this domain in order to cater to the demand for offsite construction.
Like any other industry, the real estate development sector is also ready to leverage the many benefits of the revolutionary technology called the Internet of Things (IoT). This technology holds potential to encapsulate several aspects of the construction process, including the tracking of materials, site surveying, and equipment repair and maintenance. Real estate development companies that are the first to adopt the technology will be able to enjoy unparalleled cost-related benefits.
At Allen Austin, we understand that the real estate development sector faces a diverse range of challenges and opportunities. We assist companies in hiring the right people who have the skill set and experience required to seize opportunities and overcome challenges. Leveraging our industry-specific experience and deep insight, we provide bespoke talent solutions to business owners helping them hire high-caliber executives and managers for their firm.