A Marketing Agency’s Thoughts on Real Estate
Real estate developers face a changing landscape with the pandemic and related matters. Various considerations determine the impact of development success – based on buyer expectations and technological advancements.
The global real estate market grew to $2,774.45 billion at a compound annual growth rate (CAGR) of 3.2 percent in 2022, and investors can expect a wave of new profitable opportunities.
However, modern real estate developers need to leverage buyer data and real estate industry trends to keep up with the latest advertising and marketing strategy trends to achieve ideal outcomes.
COVID Behaviors Remain a Major Driver of Investments
The pandemic accelerates real estate industry trends in response to global economic growth. Specifically, the new economy drove a dramatic shift in employer and organizational behavior through flexible and remote workplace policies.
There have been lasting changes in real estate investments regarding office space as more companies switch to a home or hybrid office arrangement. According to Barclays, which cited information from the commercial real estate database Costar, the national office vacancy rate has increased from 9.7% to 12.2% over the previous two years.
The Rise of PropTech
A global preference for remote services and capabilities has led to increased use of intuitive prop-tech, where optimized platforms can offer real estate developers a significant advantage over competitors.
More real estate investors are turning to the adoption of software with comprehensive features that include building management and sales and marketing (i.e., CRM) processes. From the buyer’s perspective, mobile apps can expedite the buying, selling and management of properties while facilitating communication with real estate companies.
Additionally, real estate industry trends show some of the lowest technology adoption rates in the market. Therefore, investors and companies that are early adopters of the latest integrated prop-tech, ranging from backend management to on-site property applications (e.g., smart locks), could reduce expense concerns that may arise in 2022 and beyond.
Mobile-friendly real estate platforms will become highly popular among investors, buyers and construction owners as more online users access mobile technologies. There might be increased use of mobile prop-tech based on existing trends that 73 percent of buyers used mobile or tablet devices for their real estate purchases in 2021.
Blockchain technology serves as a secure method of storing data in a highly encrypted online ledger. 2022 could be the year when companies finally implement blockchain solutions in safeguarding sensitive buyer data and transactions, fostering greater trust between investors and real estate agencies (i.e., reliable channels for commercial property marketing and sales).
Some of the biggest companies worldwide have taken a collective stance in recognizing eco-sustainability as a core aspect of their corporate and social responsibility. The real estate industry lies at the heart of the pressing need for sustainability based on findings from the United Nations Environment Program.
According to reports, building operations and construction account for 39 percent of global greenhouse gas emissions. Experts also calculated that industry decision-makers need to halve direct carbon emissions by 2030 to reach the targeted net zero carbon building stock by 2050.
Commercial property marketing teams can expect several trends in 2022 in response to sustainability movements. For starters, energy-efficient building projects may rise in number into the next decade, with the IFC (International Financial Corporation) estimating global investment opportunities to hit $24.7 trillion by 2030.
However, as a broader advertising and marketing strategy, real estate investors should consider re-assessing all portfolios by focusing on carbon reduction and energy-efficient features, which might draw increased buyer demand in 2022.
The Millennial Factor
Millennials comprise a significant portion of current real estate clients, accounting for 37 percent of homebuyers and more than 50 percent of new mortgages. As such, real estate investors who prioritize the interests and preferences of millennial buyers can gain a considerable advantage in attracting a majority demographic.
A report by the National Association of Realtors report shares the most popular features preferred by Millennials when browsing a real estate website. The top elements include photos, property info and floor plans.
Additionally, real estate investors need to identify the behaviors among millennial prospects, such as a preference for neighborhood safety and quality over property size and value.
It might be highly advantageous for investors to keep track of Millennial property preferences in their advertising and marketing strategy as individuals continue to accrue higher spending power from career progression, opening doors to more real estate options.
Real estate investment remains highly profitable despite the latest challenges from the pandemic. However, investors should familiarize themselves with the latest industry and technology trends to attract quality buyers.
An experienced full-service marketing agency such as Madison Taylor Marketing provides the latest insights that drive the most effective investment decisions for maximized profits during the most uncertain times. By combining real-time data with contextual marketing expertise, investors can successfully drive ROI and expand their portfolios without speculation.