Information is critical to the effective and efficient functioning of any market, and real estate is no exception. For real estate, given its unique and complex characteristics, information plays a more important tole to allow participants to better understand the market.
Bring in the Professionals
This creates a need for professional experts whose services center around:- collecting information
- structuring information flows
- synthesising information
- help clients reduce information costs
- match information requirements
Cases in point of the value add by professionals
With market knowledge about local areas and property market activities / transactions (which the lay person typically cannot easily access), the real estate agent helps to reduce client costs of searching for matching parties to close a purchase/lease transaction.The physical aspects of real estate imply that maintenance and management by professionals would be required to ensure functionality and value preservation/enhancement
Trends to be aware of
Tread 1: Growth and GlobalizationE.g. CBRE and JLL as global companies with worldwide networks
Trend 2: Scope of Services
Expanding beyond the core services of valuation, brokerage and management to fund management, capital advisory, occupier consulting, project management and facilities management
Trend 3: Changing Client Profile
From landlords/investors to occupiers with different needs
Trend 4: Data and Technology
E.g. use of video for virtual tours
More data to incorporate into valuations
Trend 5: Complexity and scale of real estate
Sophisticated, multi use buildings, transit hubs, heritage sites
Takeaways
If you are a fellow real estate service provider, are you keeping on top of the trends? Also see Industry transformation mapIf you are participating in the real estate market, are you engaging the right professional to allow you to extract optimal value for your time?
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