Real estate sector trends that will mark 2024

What is real estate?

Real estate is all property that cannot be moved from one place to another without losing quality or altering its nature.

The real estate sector is in a stage of recovery and reconfiguration after the change in dynamics generated by the Covid-19 pandemic and the effect it had on the population's consumption habits.

2023 has been a year of preparation and evolution at an accelerated pace, which has required entrepreneurs to have a great capacity to adapt.

The lessons of 2023 are multiple. It was a year of changes and innovations, an uncertain economic environment and challenging situations that merit aspects of reengineering and transformation.

In this context, we present some trends that will mark the real estate sector during 2024.

Sustainability

Awareness about climate change will increase preference for this type of property, where renewable energy, savings systems and sustainable materials will be a key factor in purchasing decisions.

Therefore, developers must offer homes with ecological certifications and innovative energy solutions to satisfy this growing demand in order to take advantage of market opportunities.

The agenda of investors, developers or real estate operators and the young entrepreneurs behind the startups is marked by sustainability.

This point even goes beyond the application of ESG criteria; it is about taking decisive steps to achieve a greener industry.

We have the technology to achieve it. Startups that are designing technological solutions can help reduce or definitively eliminate the negative environmental impact of the real estate business.

We must bet on open innovation. Rather than starting to design technologies, let's turn to startups.

Let's get to know what they offer and take the step of investing in that direction.

This is the time to adopt and incorporate technologies in our adaptation or digital transformation plans in the real estate production chain.

Digital transformation

From online platforms to virtual tours, technology will redefine the real estate experience, so these tools will become common in the buying or renting process, as they will facilitate the customer experience.

Real estate agents and companies that embrace the changes will be better prepared to meet the challenges.

Artificial Intelligence is unavoidable

In less than a year, after the debut of many of these tools, with Open AI and its ChatGPT at the helm, a third of those surveyed by the consulting firm say that they already use generation AI regularly in their organizations, at least as a business function.

Amid recent advances, AI has gone from being a topic among technology employees to becoming a focus of attention for leaders of all types of companies.

Although it is still early, the use of AI is already widespread.

The development of new solutions that incorporate Artificial Intelligence and generative AI is advancing at an accelerated pace.

There is no room to resist or postpone the incorporation of this technology in our businesses. If we believed that the blockchain or the metaverse were the most disruptive technologies a year or two ago, that conclusion was displaced by all the changes and transformations that Artificial Intelligence has been generating.

Indeed, they are not yet tools whose results are one hundred percent reliable, but it is evident that this is evolving very quickly and very soon the margins of error or inaccuracies that it still makes will become smaller.

Tangible asset boom

In a context of financial instability, the real estate sector emerges as a solid option, as investors look for tangible assets that offer security and moderation, which provide stable figures to their savings and investment portfolios.

Buying and selling will return to normal with a more solvent buyer profile

In 2024, it is anticipated that resistance to rising mortgage costs will be notable due to intense pent-up demand and more purchase and sale transactions could be recorded.

A scenario that would represent a return to normality and market dynamics

Furthermore, the high post-pandemic demand has stabilized and has given rise to a new type of buyer, characterized by:

• A solid financial situation.

• Experience in the real estate sector.

• In many cases, of foreign origin.

• Less need for bank financing.

• Greater purchasing power.

By 2024, a dynamic scenario is envisioned for the real estate market, which not only reflects a change in the way housing and work spaces are perceived, but also as an invitation to smart investment.

“The key for developers lies in continuously adapting, incorporating sustainable practices, integrating technology in all stages of the process, as well as responding agilely to changes in market preferences,”