“All that glitters is not gold”, this maxim stands firm when compared to the real estate business. Real estate is perceived as one of the most profit generating businesses, but behind the curtain, there’s a bounty of problems that keep coming in no time. Look at some!
In spite of positive headwinds to the industry now, the condition is still alarming. The economic condition after the pandemic is not hidden from anybody. Savings of the general public is all time low, resulting in low investment rates, obviously. Public and private indebtedness is showing the symptoms to downfall again after the great 2008 depression.
People are heading toward buying affordable houses without spending too much of their money. This has forced realtors to find ways to utilize the available cost, effectively and save more in order to fulfil this demand. Real estate “business management” is also facing a lot of hurdles and problems.
The too much documentation being recorded and maintained by the traditional methods are no longer viable. Environmental social grievance has also become a common concern of every nation. Hence, realtors are being constrained to provide environmental solutions too.
All these things are taking too much realtors money and lowering their profits year by year. Low customer conversion, Low rental yields, weak rental contract implementation, trust-deficit between owners and tenants and ease of finding properties are some of the biggest problems of the real estate industry. Growing online competition is also putting pressure on real estate professionals who are not too tech savvy.