The Internet has revolutionized all business models. From traditional banking to retail, there is no market segment that has not been affected by the technological revolution brought about by the network.
Without going any further, the Real Estate sector does not escape new innovations. The Internet has introduced new methods of internal communication and new ways of relating to customers and suppliers.
In this article we will analyze the growth of customer power on the internet and how their empowerment has revolutionized the Real Estate sector.
In fact, the Internet has not only placed the customer at the center of the business model, but has made them an active part of it. The user, nowadays, no longer needs intermediaries for the process of acquiring or renting a home.
Currently, this user has the new smart solutions to get in touch with real estate developers, to find roommates, to decorate the apartment, among other functionalities.
From client to user
User empowerment has had a direct impact on the business model of real estate developers. This process, which in English is called digital enpowerment , stands out for placing the user as the king of all processes.
According to the study of mobile consumption carried out by Deloitte, 73% of users use their telephone to search for desired products and services; 56% make purchases and 40% contract services through their smartphone .
The Internet is a tool that makes possible what was previously inaccessible. The network offers digital solutions that reinforce the power of the user against companies.
Not surprisingly, there are currently more than 236 start-ups technology in the real estate sector that provide power. To get an idea of the power of this sector: of these, 39% were founded between 2017 and 2018, and 54% between 2015 and 2016, according to Finnovating data, and it seems that the number is increasing.
Another factor that has been affected by the Internet boom has been the business model of the Real Estate sector. Today, both for sale and for rent, the process is included in the framework of consultative sales.
Not surprisingly, as we have emphasized before, the Internet and digitization have allowed users to have more information: when they arrive at the office they already know the product and its characteristics.
The consultative sale refers to the role of the commercial or real estate agent: it is no longer he who monopolizes the data of the sale, but the client has the same technical details.
Based on this fact, the commercial paradigm has changed: data is no longer important, but knowing how to manage customer emotions, offer the best offer and publicize real estate development in its best scenario.
Cultural change: the immediacy of the Internet
Beyond the entry of generation Z, the post-millennial, into the rental market, the sector has been revolutionized, as we said, by the phenomenon of digitization.
In this way, the marketing plans of the promoters must reflect this Internet boom, promoting actions to impact this market niche:
- Videos and virtual reality
- Active presence in social networks
- SEM Campaigns
- Inbound marketing
The real estate sector must incorporate these strategies to adapt its business model to new trends and generation. In fact, it is not just a question of sales. Real estate developers are fighting more and more for another element to take into account, many times just as important: reputation.
After all, a proper marketing campaign attracts potential customers and makes sales easier, allowing blue world city islamabad to become a reality in the Real Estate sector.
The 6 disruptive technologies that revolutionize the real estate sector
New technologies have changed the way to reach the future real estate buyer. You no longer work the same in 2019, than in 2009 and less than in the late 2000s.
The Real Estate sector has changed both the way of working, and of advertising or selling new promotions. In this article we will review several disruptive developments in the market.
The great search engine has represented a revolution throughout the world, including Real Estate. Google Maps is a very practical advance for any Real Estate user, be it a buyer, developer or real estate agency.
Thanks to Google Maps and Google Street View, anyone can get a quick idea of what the property is like and the neighborhood where it is located.
As if that were not enough, Google Maps can be used as a platform for Big Data tools . In other words, implement the knowledge provided by data analysis on digital maps . The result? The atlas of a city with the data you want.
2) 3D modeling
A real estate developer can have an accurate picture of how the constructed building will look . Thanks to the implementation of 3D modeling in architecture studios , during the design process, renderings with shapes and textures of the new property are already made. These images are more impressive than a flat plan or a drawing to sell to buyers.
3) Virtual tours of each floor or promotion
Forget about balancing agendas with interested clients. The developer can make a single virtual visit and have the house full of people eager to see the property from the inside. All you need is an internet connection, an iPad, and a streaming program (yes, even Facebook live). It’s that simple to be able to present a new property to hundreds or thousands of clients wanting to know the apartment.
Moreover, it is highly recommended to add a drone to the iPad on foot for aerial panoramas . Being able to show details of the roof, the neighborhood, in short, a way of selling the property that until now had never been considered.
4) Audience targeting on Facebook
The real estate marketing professional is able to create communities on Facebook to increase the conversion rate. Facebook allows us to impact users who are similar to our current clients.
If the segments of the social network are used, it is possible to reach more people with the same geographical location, with the same family attributes and, what is more, that the AI learns on its own and creates new patterns.
This community building by targeting the audience of like-minded people was impossible before the commercial development of social media.
5) Cloud systems to be more efficient
Data storage has always been a big problem for companies. The software generates a large amount of data that is not always easy to save. Now, there are several programs to save our reports on the cloud, as well as our entire system. Safe and reliable platforms that allow a real estate developer to be more efficient or that allow the management of a property electronically.
6) Space optimization
The programmable spaces allow you to transform the use of one room in the house into another with just one click. That is, being able to physically change a bed in a closet at the push of a button. In other words, optimize the space of a home to the maximum.
It seems like science fiction, but more and more companies are taking care of it. After all, users increasingly have a greater number of needs in their homes, at the same time that the price per square meter increases in large cities.
Why You Should Diversify Your Real Estate Portfolio
Assets in the same market tend to behave in a similar way. If the popular proverb states that “eggs should not be put in the same basket” the trend is also applicable to real estate portfolios.
Although the Real Estate sector is less affected by market volatility than others such as the Stock Market, as it is a staple asset, the premise remains the same: the lower the correlation between assets, the lower the risk of a global decline.
In this article we will warn you why the real estate market, it is essential to diversify your portfolio of assets to mitigate the effects of market volatility. Likewise, we will give you three ideal options that, according to the experts, you should incorporate into your portfolio and that will minimize the risk of a possible fall.
In the end, and following the comparison with gastronomy, putting all the food in the same basket is exposed to the fact that, with a single apple that has rotted, the others are infected. The same happens with real estate promotions.
In this way, the trend of real estate developers is to diversify their portfolio . Although in a rising market more benefit can be obtained by reinforcing investment, diversification exposes the real estate developer to a direct benefit in the long-term strategy .
Technology enhances diversification
Like any economic market, the behavior of real estate products is cyclical and subject to the volatility of the economy. With this, the diversification of the real estate portfolio must cover all kinds of behaviors.
Specialization has its advantages but also its risks:
- When a market falls, the real estate developer falls
- Investment at the hands of the markets
- Less margin for action in the event of a crisis
The entry of advanced analytics in the real estate sector has provided tools to instantly know the state of the markets and thus be able to diversify taking into account their cyclical behavior.
In fact, big data has even allowed real estate developers to create a portfolio by hand following an investment pattern, which has made it easier to diversify real estate portfolios.
After all, the introduction of data into the business decision equation has allowed real estate developers to study which context benefits them the most and, above all, which is the best in which to invest.
One of the premises that must be taken into account when creating a real estate portfolio is to balance those assets that pose more risk with those that are consolidated in the market.
If the residential market is governed under certain conditions, so does the commercial rental and sale market in other terms . In this way, this investment consists of acquiring one or more premises and transferring them to businesses.
Advantage? Although it is a less stable market than that of residential housing, especially in less populated areas, it is governed by a different supply and demand law, so these investments will not be affected.
Also, beyond having a smaller market, investing in the commercial sector has an added value, the Anglicism Triple Net Lease, the lessee takes over:
- Of business taxes
- And from a monthly rent
Understanding that markets work based on fluctuations, not just Tajarat properties and that these are the basis of the growth of a real estate developer is essential to be able to diversify your portfolio successfully.