The new year has begun and after a year 2018 packed with changes in the real estate sector. We enter a time of new challenges in the sector of Real Estate.
Despite the forecasts of slowdown in the economy and the tension between public and private players, the real estate sector is struggling to reach that bullish streak that started two years ago. But for this, the real estate world must face challenges within the Real Estate for this 2019:
- REAL ESTATE PROMOTERS INCREASE
Figures for 2017 and 2018 for real estate developers confirm that it has been a time of a large number of purchases and whose large cities, Madrid and Barcelona, have raised their prices to double digits.
According to experts, in 2019 this trend will continue and the increases in residential costs will move between 4% and 6% on average. Sources such as Cbre or Tinsa, confirm that the number of operations will increase by 5%, reaching over 625,000 transactions.
The real estate is preparing to reach a point of maturity in which no great peaks of activity are expected, but it will be noted the progress in the delivery of homes and an increase in the speed of the processes prioritizing the customer at all times.
- THE UNION OF THE REAL ESTATE TO THE PROPTECH
The proptech has already shown in 2018 that it is here to stay and one of the great real estate challenges for 2019 is precisely the fusion of both concepts to 100%. A large number of companies in the real estate sector, including Merkel Capital as a real estate developer of new construction in Barcelona; It mobilizes and begins to transform its processes by digitizing the processes, as well as adapting to the customer in its way of communicating and buying.
Tools such as Big Data, artificial intelligence and Business Intelligent begin to automate processes and collaboration with start ups has reached a key point for companies in this new year 2019.
Currently, only 30% of companies invest or have plans to invest in emerging technologies. Still, according to the latest reports prepared by KPMG, it is estimated that this is the year in which the best companies will discover how to observe, test, evaluate and invest in proptech.
At Merkel Capital, we work every day to digitize our processes and achieve an improvement in products and services thanks to new technologies. Our way of working and developing projects not only supports sustainability with the environment, but our communication and asset quality maintains a close relationship with the most current technology.
- POTENTIAL INVESTMENT OF THE REAL ESTATE SECTOR
That the investment of the real estate sector continues to be strengthened and the sector continues to obtain the figures it has achieved during 2017 is, of course, another great challenge for the Real Estate sector for this 2019. According to a report made by CMS Aliñana & Suárez Lezo, it indicates that the investment Real estate in the old continent has reached this year 234,000 million euros. The figure is 7% higher than that registered in 2017 and confirms the upward trend in terms of job creation that exists in Europe.
Madrid and Barcelona are consolidated as the cities with the greatest nerve centers of real estate investment. Therefore, the real estate market continues to maintain its attractiveness for national and international investors and the advantages of acquiring a new home. The economic recovery of the labor market and the low financing costs will lead the sector to grow close to 4% annually, driven by the shortage of supply.