The real estate market is consistently evolving and changing, making it one of the most resilient industries in the world today. However, many factors can impact the industry positively or negatively, so it’s important to be aware of them before you make your next move in real estate investment or real estate development. Some of the most potentially occurring factors would be climate change, pandemics, economic factors, design trends, customer loyalty, and more.

The real estate industry contributes to the country’s economy massively. When these factors affect the industry, the country’s economy also gets affected.

Factors that affect the real estate industry –

◉ Technology

Both business and residential real estate are being affected by new technology each year. Real estate is the world’s largest commodity category, so the market stands out as a new challenge for tech integration.

With advanced technology, real estate developers can now have non-intrusive, constant communication with their customers. This helps eliminate the gap between builders and homeowners. To help real estate developers engage with their customers and channel partners, prop-tech companies like Reloy have built digital platforms.

The market is changing for many reasons than just technological interior finishes. Due to the impact of virtual reality (VR), property tours have evolved into an unreal experience that immerses potential customers in a floor plan navigation environment.

◉ Design Trends

New design trends have rapidly changed in recent years, making it even more important for developers to focus on aesthetically pleasing buildings. Companies have tried to implement new styles by developing open floor plans and adding rooftop decks. One of the most popular interior designs is a minimalist look that reduces furniture, wall colours, and decor.

Drawing our senses to the latest interior design trends of 2022, the top seven are brown shade walls, pastel colour interiors, flexible spaces, smart homes, upraised outdoor furniture, green interiors and 3D art designs.

These innovative changes are intended to attract younger buyers of all categories, from those not interested in settling down yet to those who have families with children and want extra space.

Today, real estate builders focus on presenting the experience of being a luxury homeowner rather than just selling the product. They are giving more importance to home design trends, green spaces around the property, and modern amenities and trying to create a healthy ecosystem for their customers. Design trends have evolved from modern and luxurious to practical, comfortable and stylish.

Reloy’s ConnectRE is a platform where builders can showcase all their new design trends for the house and the property. Apart from providing digital amenities, Reloy also allows the homeowner to avail of moving-in benefits from top interior design companies. One can bring out the aesthetic of their home design using these deals.

This platform also provides a perfect channel for builders and homeowners to communicate in a non-intrusive manner.

◉ Customer trust

The trust of homebuyers is a key component of the real estate business. When buyers are uncertain or feel there’s a lack of transparency in the real estate market, they’ll be less likely to purchase homes.

The key to earning and maintaining customer trust is building relationships by taking them on tours, answering their questions, and following through on promises. For example, some developers offer deals for prospective homeowners from lifestyle or moving-in brands.

Homebuyers have a strong sense of what type of property suits their needs; just because a certain popular model doesn’t mean it will fit that specific family’s lifestyle. It’s important to take time with each client and find out what they’re looking for to ensure they’re satisfied.

Many real estate companies design loyalty programs for homeowners to maintain long-lasting relationships. The builders provide many benefits through loyalty programs to make their homeowners feel special.

With the help of Proptech companies like Reloy, they organise curated events and workshops according to specific audiences to keep them engaged, thus building delight towards the builder. This way, the builders can retain their customer’s trust and earn referrals. It’s the perfect WIN-WIN situation.

◉ The Interest Rate on Property and Loans

Interest rates are crucial to the growth and development of the real estate market. People will only want to invest in real estate if the government imposes reasonable property taxes.

Investment in the sector is rising at a brisk pace. According to a Colliers report, investments in Indian real estate touched $3.6 billion during January-September, 2022, thus, registering an increase of 18% year-on-year.

Higher taxes will prevent people from purchasing real estate. The government establishes and implements new rules and regulations yearly to boost the real estate market.

Unlike before, taking a home loan is much easier. People will obtain loans and make real estate investments if the nation’s banks issue loans with manageable monthly payments and clear terms and conditions. Reloy is also coming up with a new feature to simplify customer loan payments.

Conclusion

The enormous real estate market significantly impacts the global economy but is also quickly influenced by various factors.

The last one and half years have been extremely great for the real estate sector. As per a PropTiger.com study, housing sales rose 49 per cent year-on-year to 83,220 units in the July-September period across eight major cities as against 55,910 units in the same quarter last year.

Most cities have also witnessed a dip in the unsold inventory, with Bengaluru witnessing the steepest decline of 14% YoY. As per a recently released CREDAI – Colliers – Liases Foras report, only Hyderabad, MMR and Ahmedabad saw an increase in unsold inventory, led by significant new launches.

It is crucial to keep a balanced business in such a large industry. Real estate is unquestionably a better sector than it was in the past, leading to an increase in demand.

Dynamic infrastructure, innovative architecture and design, upscale facilities, prime locations, and more have all helped draw buyers to the Indian real estate market. However, if builders

want to continue with the trend of increasing demand, they must add value to the lives of their customers & channel partners.

Reloy’s ConnectRE & WinnRE programs allow real estate builders to create comprehensive loyalty programs for their two most important stakeholders to ensure greater satisfaction & motivation, respectively. If you also want to join this real estate revolution as a frontrunner, get in touch with us today and schedule a demo!