Introduction
The real estate industry is one of the main sectors contributing to global economic growth. Due to the developing trends in information technology, the industry is undergoing a significant digital transformation. Due to the IT development the market dynamics is shifting and is creating room to hire skilled professionals to fill skill gaps which has been a major concern. Skill scarcity is a pressing issue which has been a hindrance for many business industries lately.
In this article we’ll cover what are some skill gaps present within the real estate industry, its impact on business growth and how you can minimize the gaps.
Before, going into the details let us begin by understanding the Real Estate industry from a global viewpoint.
Real Estate Industry: A Global viewpoint
The real estate industry is an important component of the global economy surrounding residential, commercial and industrial properties. According to one report by MSCI the global real estate market was valued at $9.6 trillion in 2019 and it grew to $10.5 trillion in 2020.
Some more statistics that show the WOW economic growth driven by our favorite Real Estate industry.
Statistics showing contributions of Real Estate to Global economy
- The Real Estate market market worldwide is expected to reach a staggering value of US$637.80 trillion by 2024.
- Among the various segments, Residential Real Estate dominates the market with a projected market volume of US$518.90 trillion in the same year.
- Looking ahead, the sector is anticipated to grow at an annual rate of 3.41% (CAGR 2024-2028), resulting in a market volume of US$729.40 trillion by 2028.
This growth is fueled by several factors, including:
- Urbanization : According to the United Nations, 68% of the world’s population is expected to live in the urban areas, including the demand for both residential as well as commercial properties.
- Rise in disposable income : As disposable income rises, particularly in emerging economies, there is an increased demand for a higher-quality of housing and real estate investments.
- Technological Advancements : The integration of technology in real estate operations, known as proptech, is driving efficiency and innovation in property management and transactions.
So much growth, but still not everything that seems gold is real gold. Despite all the growth, there is one concern which can hinder the growth of the Real Estate Industry and is known as skill gaps. Let’s understand a few skill gaps present in the Real Estate sector.
What are some Skill gaps in the Real Estate Industry?
The real estate market’s quick evolution has brought to light a number of skill gaps, including:
- Technical Skills : As proptech (property technology) has grown, there is an increasing demand for experts in the use of cutting-edge instruments and software for data analytics, virtual tours, and property management.
- Sustainability Expertise : As sustainability gains importance, there is a need for professionals with knowledge of energy efficiency, environmental impact assessments, and green building techniques.
- Customer Experience Management : Seamless, digitally-first interactions are what modern customers demand. It is essential to have knowledge of user experience (UX) design, digital marketing, and customer relationship management (CRM) systems.
- Data Analysis : Real estate organizations increasingly rely on data-driven decision-making. There is a need for professionals that can assess market trends, property values, and customer behavior.
Apart from the above-mentioned skill gaps there also exists some problems faced by the Real Estate Industry, we’ve mentioned them.
What are the problems faced by the Real Estate Industry?
General problems
- Market Volatility : Economic swings can have an impact on property values and investment returns in real estate markets.
- Regulatory Difficulties : It can be challenging to navigate complicated regulatory frameworks, especially when making overseas investments.
- Problems with Financing : Getting funding for big projects can be difficult, particularly in erratic economic times.
Skill Gaps and Their Implications
- Talent Shortage : According to one report by Deloitte, 62% of real estate businesses consider talent retention as a major concern for their business growth.
- Aging Workforce : As the report by Urban Land Institute shows, a major portion of the real estate workforce is about to retire, which leads to a potential shortage of experienced professionals.
IT Problems in Real Estate Industry
Impact of Skill gaps
The lack of proper IT skills and proper technological infrastructures are hindering the growth of real estate business in a number of ways:
- Insufficient Operations : A lack of skilled It professionals may lead to Real Estate companies struggling to implement and maintain an efficient property management system, thus inviting operational inefficiencies.
- Poor Customer Experience : Lack of expertise in web & app development can lead to a subpar digital experience for customers, which will affect engagement and customer satisfaction.
- A limited data usage : Companies risk missing out on important insights that could guide strategic decisions and spot market opportunities if they lack data analytic expertise.
- Competitive Disadvantage : Businesses that don’t embrace and use new technology run the risk of lagging behind rivals who use technological innovations to improve their products and services.
Let us understand what type of IT problems these Real Estate Industries can face.
Types of IT problems
- Cost Saving Software Development : A lot of real estate firms have trouble coming up with cost saving ways to create and manage their online presences. Exorbitant development expenses can impede a company’s capacity for innovation and competitiveness.
- Outdated Systems : Various real estate companies use an outdated software and system which is not optimized for modern day needs.
- Cybersecurity Threats : As the transactions in the real estate industry are taking a shift, the risk of cyber attacks is increasing. Many real estate companies are finding it hard to implement efficient cybersecurity measures.
- Integration Issues : It can be difficult to integrate new technology with current systems, which can result in interruptions and inefficiencies.
Now, we’ll finally move forever to understand how a solution named IT Staff augmentation can help you in bridging the skill gaps present in your Real Estate IT team.
Real Estate: How IT Staff Augmentation is the Savior
IT Staff augmentation is considere an effective strategy to minimize the skill gaps of the real estate industry. By helping companies hire remote developers, Acquaint helped real estate companies to access a diverse pool of talent without any hassle.
Let’s get straight and understand how IT staff augmentation can help.
- Access to Specialized Skills : Building a remote team by hiring remote developers can often bring specialized skills and expertise which might not be available locally. This allows real estate companies to use the latest technologies and best practices.
- Cost-effective solutions : Hiring remote developers can be more cost saving as compared to hiring in-house developers as this allows the companies to save overhead costs like office spaces, equipment and benefits.
- Scalability : Depending on the demands of the project, IT staff augmentation provides the flexibility to scale the workforce up or down. This is especially helpful for real estate companies whose needs could change over time.
- Faster Time-to-Market : Businesses can increase their competitive edge by developing and deploying digital solutions more quickly when they have a team of knowledgeable remote developers working for them.
- Focus on Core Business : Real estate organizations can concentrate on their core business operations, such property management and customer service, by outsourcing their IT functions and leaving the technical details to professionals.
Now, let’s understand How Acquaint Softtech successfully implemented IT Staff augmentation to help their client save millions.
How Acquaint Softtech implemented IT Staff Augmentation?
Acquaint Softtech is an outsourcing software development company & an IT staff augmentation services provider. Being an official Laravel partner, ensure they use Laravel framework to help their clients meet their business needs with ease. Read the Expand Your Real Estate Business Online to know more.
Wrapping Up!
The real estate industry has come to a crucial juncture with the demand for skilled professionals being paramount. There are great hindrances to business growth due to the skill gaps involving technology, sustainability, customer experience, & data analysis. However, IT staff augmentation provides one with a practical solution to these gaps.
At Acquaint Softtech, we understand the exclusive industry challenges and needs of the real estate sector. Hire remote developers from us to navigate these challenges in stride toward business growth in your organization. Get in touch with us today to get empowered on your journey towards your success with IT staff augmentation service.