Drastic changes on the way?

The growing influence of automation and next-generation communications technology across all industries is introducing a fundamental disruption into how society is structured, and a recent study provides a tantalizing look at the changes that could be ahead for the real estate sector.

In a white paper published in mid-July, consulting firm Avison Young predicted that the greatest shift would stem from the remote accessibility that is a natural consequence of distributed networks and open-source platforms.

“E-commerce, fintech, co-working, big data, autonomous vehicles and blockchain technologies are distributed-network systems that logistically change where and how work gets done,” wrote Avison Young managing director Amy Erixon, the author of the white paper. “For real estate professionals, these technologies’ distributive aspects pose the biggest challenge when it comes to forecasting property performance outcomes. Distributive technology holds the promise of equal access to opportunities and significantly enhanced consumer value propositions.”

The paper also posited that the real estate sector’s continued relevance will depend on its ability to rapidly respond to the workplace’s appetite for ever-greater computational power, along with improved resiliency and cybersecurity.

Avison Young allayed fears surrounding artificial intelligence, suggesting that industry professionals learn as much as they can about this nascent technology to ensure they can make the most of it.

“Put in the hands of humans, AI can help find solutions to vexing problems, and time-consuming processes can be streamlined,” Erixon wrote. “An AI system in dynamic interaction with changing surroundings or morally impactful decisions needs context to make judgements. Can we program a machine to follow social, cultural and emotional norms that underlie the essential trust underpinning societies? Some researchers think we can, but these systems sometimes surprise their creators.”

In addition, emerging trends in automobile production and operation will make themselves felt in real estate. The most important of these might be the growth in ride-hailing and ride sharing options, which “corresponds with a significant reduction in the need for parking spaces in major cities and rising tolerance for distance commuting,” Erixon wrote.

MBN

We hope you are finding our Blog informative and enjoyable to read while keeping you up to date with the ever changing real estate market.

Please feel free to contact me via Direct/Text or e-mail at any time and my team will be pleased to assist you, family members and friends with all your real estate needs. Referrals are always welcome!