As 2020 is coming to an end, many people and industries are feeling underwhelmed and worried about the current state of affairs. That is why we did some research to create a growth forecast for the Real Estate, PropTech and Construction industries in 2021. Is there hope for growth in 2021?
- More than 600 PropTech businesses in Australia alone.
- Demand for PropTech that allows virtual interactions will increase
- Marketing will become more personalised and multifaceted
- Agencies will focus on data as a source of truth
- 80% of millennials searched for homes on a mobile device, and 52% of house hunters and renters of all ages found their home by beginning with an online search.
Commercial Real Estate forecast:
- Digital transformation of the business and tenant experience could become a business imperative.
- More than one-half of respondents (of the survey source) (56%) believe that the pandemic exposed shortcomings in their organisations’ digital capabilities.
- Companies can strengthen operations and build trust with tenants by adopting a structured approach to digital transformation, bolstering cybersecurity and data privacy efforts, and leveraging and using analytics to make data-backed decisions.
- The pandemic is disrupting the value proposition of CRE, especially for offices, retail, and hotels, causing most CRE companies to re-evaluate existing portfolios.
- CRE companies face cost pressures due to softening operating fundamentals: Respondents plan to reduce costs by 20% on average.
- Optimising operational costs and using technology to reposition space and for facilities management can improve operational resilience.
- CRE organisations are feeling the financial impact of the current economic environment—36% of North American respondents, compared to 25% European and 23% APAC counterparts, expect rental collection declines of more than 20% in the next year.
- To enhance financial strength, companies could focus on bolstering their asset portfolios and digitising the finance function.
- More than 50% of respondents acknowledge that their ability to succeed in the post pandemic world will be hampered in the near term by employee concerns about returning to work.
- Planning and implementing a talent transformation strategy to adapt to the future of work, and prioritising diversity and inclusion will provide a competitive edge.
Construction Industry Forecast:
- Global construction industry real growth is set for a timely rebound to positive growth territory during 2021, following an overall contraction in 2020 amid the Covid-19 pandemic, with Latin America forecast to see the fastest real growth of any region.
- Asia, having suffered the shallowest contraction in 2020 of any region, will continue to account for an outsized portion of global construction industry value, while also standing as the second-fastest-growing region in 2021.
- After shedding 85.6bn USD of its overall construction industry value in 2020, global construction will more than recoup this Covid-19 pandemic-induced value hit by adding 376.5bn USD during 2021.
In a recent article, Appello Software went into detail about mobile applications for the Real Estate, PropTech and Construction industries which shows that we feel very optimistic about the growth and digital transformation happening in these industries. Adapting to technological advances has never been so important for industries to not only survive but thrive.
Contact us today for advice on software your company can use to scale your business!