With a projected average annual growth of 3.5% over the next 4 years, real estate continues to be one of the most promising industries for investment and successful business development. In this article, we have analyzed the trends in the global real estate market and discussed two effective ways to conduct business in the real estate sector in 2024.

Real Estate market trends in 2023-2024

The real estate market is a key sector of the global economy that is dynamically evolving due to global urbanization and population growth. This year, influenced by economic instability and armed conflicts, the industry is undergoing a significant reset.

In 2022, the growth rate of the global real estate market was 5.04%, and in 2023, it slowed down to 0.5%. The overall value of the industry is approaching $4 trillion, and by 2024, experts anticipate its growth to reach $4.25 trillion.

Analyzing the global real estate market, we have identified its key trends for the current year, which are expected to persist into 2024:

  • Housing price growth. Due to the demand surpassing supply in most countries, the cost of purchasing and renting homes continues to rise, fostering investment inflow into construction. In 2024, a 2.6% average increase in real estate prices is anticipated.

  • Digital transformation. Virtual reality, smart home technologies, artificial intelligence, and blockchain transactions are becoming driving forces in the sector. They enhance real estate buying and selling processes and increase transaction security.

  • Suburban revival. The COVID-19 pandemic has led to a widespread shift to remote work globally, and many people, aiming to create more personal space, continue to move into spacious suburban homes.

  • Demand for sustainable housing. Growing attention to a sustainable future is changing priorities in the real estate market, where an increasing number of buyers and investors prefer environmentally friendly and energy-efficient homes.

  • Global economic impact. Interest rates and geopolitical instability influence the cost of real estate and decisions regarding its purchase. At the same time, rising inflation is driving investments in construction with the aim of generating future income.

How to build your real estate business?

Promising prospects in the real estate market are attracting more entrepreneurs, and the competition here is becoming more intense. That's why, for successful real estate business development, it's crucial not only to adapt your activities to current industry trends but also to use effective methods of attracting investments and selling property. Among the most effective business models in real estate in 2024:

  • Referral programs

Modern society tends to trust recommendations from acquaintances, consequently, the effectiveness of referral programs in increasing brand awareness and business development is growing.

A referral program is a system whereby real estate sales, rental services and construction investments are made through a network of independent agents.

In the real estate sector, referral programs operate on a simple principle, involving the determination of rewards for agents for making sales or attracting investments. The rewards are often commission percentages of the value of the property sold or the amount of investment raised. This strategy allows you to expand your business and attract loyal customers or investors without spending a lot of financial resources. In addition, it also helps to retain existing customers by providing them with a source of additional income.

To implement a referral program in a business, you must first create a compensation plan that will attract and motivate agents. Also, to manage the referral structure, it is important to use software that allows you to keep records of active transactions, track the achievements of agents, optimize the calculation of commissions and automate all processes as much as possible.

  • Crowdfunding

Many people aspire to invest in real estate, but they may not always have sufficient funds for traditional investment. Therefore, the emergence of crowdfunding opens new opportunities for real estate businesses.

Crowdfunding is an innovative method of gathering investments for construction or real estate purchases from various sources through online platforms.

The main idea of crowdfunding is to attract a large group of investors, each of whom contributes small amounts of money. Consequently, real estate investments become more accessible to a wide range of people, and entrepreneurs are able to accumulate the necessary capital to implement their projects faster.

There are two different crowdfunding models that differ in their approaches to raising real estate investments and project management:

  • Classic crowdfunding is a model for attracting investment in a specific real estate object. This approach brings participants a specific reward, in the form of investment income. Investors can follow the development of the project, and all decisions on construction or profit distribution are made by the project team or a centralized crowdfunding platform.

  • DAO is a decentralized governance model based on blockchain technology. It uses smart contracts to automate management decisions. DAO participants have the right to vote, which usually depends on the amount of their contribution, when choosing a property or distributing profits. This model provides high transparency and democracy.

Regardless of the chosen crowdfunding model, to raise real estate investments you need to create your own or place your project on an existing crowdfunding platform. A proprietary platform is often the best solution, because this way you get adaptability to the needs of your business, unlimited functionality, as well as full management and control.

Referral programs and crowdfunding are effective tools for global attraction of investors and clients in the real estate market. However, without the right strategy and software, the introduction of these tools into the business will not bring the desired results.

The FlawlessMLM team creates seamless software solutions for both models, and integrates referral programs to strengthen investment attraction. Follow the link https://flawlessmlm.com/en/mlm_consulting and submit your application, we will help you build your successful real estate business.