As we start 2020 after many years of lacklustre Real Estate business, we are tempted to adopt a pessimistic outlook, but this is exactly what we do not need. There are many positive signs, if embraced, can lead to us to having a very good 2020. The market for Real Estate seemed to have bottomed out and prices are beginning to show a rebound or at least a firming up.
The Central Bank has reported a 10% growth in mortgage applications for the last year and there is a small increase in cement sales, which indicates a growth in construction. There continues to be low inflation rates and it is an election year. Taken together we can interpret a positive start to the New Year Real Estate industry.
Yet as positive as these signs may be, these factors do not guarantee a growth 2020. More than positive indicators 2020 will depend more on your mental attitude. Will you approach the year with enthusiasm and confidence or with a business as usual mindset.
As we scan the world for big trends we can expect vigorous demand for specific Real Estate goods and services in our country and region. The years ahead will be years of social challenges and the Real Estate industry will have to rise to the situation. A few of these will be:
- A need for more sustainable development, less wastage, less energy consumption and less carbon footprint. The Real Estate sector will be expected to lead with more environmentally friendly developments and properties.
- More social upheavals with more people on the move. This will give rise to increased demand for short term rentals or leases.
- More small-scale entrepreneurship with increased demand for shared workspace
- The continued march of urbanization with increased demand for properties nearer the urban centres.
- Smaller families with the increased demand for studio, one bedroom and two bedroom apartments.
- Increased incidence of Money Laundering and Human Trafficking leading to a need for a greater awareness of professional Real Estate practices.
- The impact of the de-criminalization of marijuana with the social impact to housing and housing communities and the need for the Real Estate industry to take the lead in developing guidelines.
- The aging population with increased demand for housing and communities better suited to senior citizens
All of the above, together with developments not anticipated, will put greater demand on the professional Real Estate agent. To succeed in the industry will require a more learned agent, a better managed brokerage, more productivity, greater use of technology at the most economical prices.
All of the above can seem daunting, but viewed with a positive mental attitude, they can also be seen as opportunities for your practice differentiation and growth.
Let us all commit ourselves to such a positive mindset, a practical application of faith and hope to overcome the challenges ahead and create value for our clients and the citizens of our nation.