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The year 2021, severely affected by the COVID-19 pandemic, posed challenges for property operators in terms of labour shortage and the transportation crisis. Rising regulations, consolidation of industries, and affordable housing have also slowed their business. Property managers tackled these challenges successfully by providing timely customer service and leveraging new technologies designed to automate business processes. Anticipating the real-estate opportunities they can seize in 2022 and predicting the potential challenges for the real estate industry in 2022 and the upcoming years can help real-estate operators come up with appropriate solutions.

Trends

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Here are some key trends to get the property operator’s attention:

[1] It is predicted that inflation and interest rates in 2022–2023 will increase financing, labour, utility, and operating costs, thus impacting the real-estate sector’s income generation. According to a TimesProperty report, property prices will increase by 10%–15% in 2022. Companies offering property management services can leverage smart financing, reducing the overall budget without needing loans even in the face of rising business expenses.

[2] With supply chain delays and a shortage of workers, the property management industry is working in smaller teams; consequently, companies in this domain must exert more effort in recruiting and retaining employees. Investment in cutting-edge technology can also help them simplify processes and reduce the amount of human labour involved.

[3] Location of residence is another crucial factor determining property operators’ business. Domestic workers must reside in the same city or neighbourhood in which they work. However, financially sound individuals can flexibly rent a property close to their workplaces. Furthermore, individuals working from home expect a zone of high-speed bandwidth and fiber optic. Hence, such aspects must also be considered while offering property.

[4] Recent demographic trends demonstrate that millennial and Gen-Z tenants are more involved in the tenant market and expect high-tech digital solutions as a part of the deal. Property owners are also keen on technology-driven asset management companies.

[5] PropTech adoption is one of the latest trends today. Even after the pandemic, it has become more convenient for consumers to deal with the digitization that has been a relief in the last few years.  

Property managers are keeping technologies that create more functionality for their team as well as more convenience for their clients.

[6] Property management efficiency can be facilitated by designing comprehensive property management solutions using cloud-based SaaS software technology.

Challenges

Keeping abreast of technological advances and affordable prices is a challenge for the real estate industry.

Below are some key sections that asset managers need to provide satisfaction:

  • Fixed Infrastructure Policies – Businesses, as well as home buyers, decide when infrastructure is available. The absence of concrete decisions regarding reconstruction, improvement, or restoration of infrastructure creates uncertainty among property owners.
  • Ensuring Budget-friendly housing – Affordable property near the workplace is a preferred option for middle-income groups. However, providing “reasonable” or “affordable” housing options for homes that are increasingly out of reach for millions of people can be difficult for property agents.
  • Engaging in Digital Marketing Strategies – Effectively utilizing digital marketing channels to build a customer base and ensuring an increase in sales turnovers are two major challenges that the real estate industry will face in 2022.
  • Facilitation of Advanced Technology – Fulfilling home buyers’ expectations of smart technology in apartments and homes is a challenge for agents. Moreover, automation technology and advanced virtual tours – including the iBuyers app – in the real-estate industry typically bypass agents in deals, posing a challenge to property operators.
  • Environmental Impact – Natural disasters and global warming are major threats to property. The challenge is to earmark a safe site and ensure that the building meets the predefined standards and entails properly linked insurance.
  • Unavailability of Skilled Labour – The future will still depend on highly skilled workers to operate complex systems and machinery, including robotics; consequently, finding skilled labour will become increasingly difficult.

Takeaway

Incorporating the right tools at the right time gives you the freedom to focus on what works best for you – you can reap the benefits of exceptional on-the-ground support, local market skills, and empathetic customer-driven customer service that keeps the property market afloat on a seemingly difficult sail.

Property managers can avail of the assistance of The Housemonk, a one-stop solution in property management,  to address the challenges prevalent in the property market.

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