There have been some truly remarkable changes in the way people live and work since the Covid-19 pandemic. Rapid technology development, transformation of the real estate financing industry and the introduction of new business models have catapulted the real estate industry into overdrive.
In the past year, the market witnessed a home-buying frenzy of first-time millennial homebuyers, largely fuelled by mortgage rates at an all-time low. With the increased interest from prospective home buyers to expand their portfolios and secure the right home for themselves and their families, 2022 will continue to be labelled as a strong buyer’s market. In the UAE, especially in Dubai, real estate brokers are anticipating a more balanced market, but with high demand continuing.
Moreover, home buyers are increasingly relying on their chosen real estate professional to become their eyes inside the house by capturing a video tour instead of actually visiting the property. A survey conducted by the National Association of Realtors found that 35 per cent of realtors are seeing sellers rely on virtual tours. The increased use of this technology means this trend will continue as the primary means of viewing a home and engaging clients.
Some of the top trends we will continue seeing this year include:
When restrictions were implemented during the pandemic, virtual home tours and 3D mapping were the solution. Now that these features are bound to stay, what’s next? Advances in technology, data and analytics will soon allow realtors to create more personal experiences across the home buying process. According to a report by McKinsey, personalisation has proven to drive 5 to 15 per cent increases in revenue. Millennials are now becoming the largest real estate buyers. Marketers today need not only to reach out to millennials but do so in the manner they expect, which means offering personalisation in everything, from small tasks such as shopping for a gift and ordering takeaway to bigger items such as buying a house.
Companies known as iBuyers, meaning instant buyers, will muscle head-on with conventional brokers by using algorithms to set home prices and provide an instant offer to sellers. This instant method of buying and selling homes is set to revolutionise the real estate market. Using artificial intelligence and mathematical algorithms, an iBuying company can generate an automated valuation, giving the seller a more streamlined approach to sell the house, eliminating the banks and brokers in the process.
These instant transactions will offer a quick and less complex procedure, resulting in an easy house sale.Sellers aren’t the only ones who can benefit from the iBuying process. For buyers, the instantaneous nature of iBuying means constantly new inventory is added to the market and they have the option to choose a property that fits their requirements. It is easy to schedule viewings and homes are always in turn-key condition, enabling a smooth buying process.
THE IMPACT AND DEMAND OF NEW CONSTRUCTION
Until just recently, the importance of sustainability in the construction of homes or commercial buildings was merely a distinct minority. Since millennial buyers have entered the real estate market, there has been increased focus on environmental sustainability in the real estate industry. As the space continues to transform, sustainability can no longer be considered ‘niche’ by real estate developers. According to a recent survey by Nielsen, 81 per cent of consumers around the globe believe it is very important for companies to have environmental improvement as an objective.
Green building initiatives have now gone mainstream, and buyers expect a certain amount of sustainability in their homes and commercial buildings. According to the National Association of Homebuilders, homebuyers want and are willing to pay more for sustainable features such as energy-efficient appliances and windows alongside features that ensure better air quality.
Tymour Fisher is the general manager UAE at Nomad Homes