The current macroeconomic situation does not affect the demands of employees that emerged during the COVID-19 pandemic: they still seek flexibility and alignment with their own values. About 35% of employees say they need to work from home.
Undoubtedly, the main advantage of working from home is the balance it creates: 71% of respondents believe that it helps them maintain a work-life balance. Among them, 52% say it helps them a lot.
Source: Freepik
As of 2024, many people have managed to maintain their remote lifestyle. This phenomenon has influenced the choice of residence and the purchase of remote houses from the office. That’s why inflation is much lower now, but house prices and mortgage rates remain high.
In many regions, sellers still have an advantage due to the shortage of houses, and no one expects a sharp drop in the housing market. At the same time, many analysts predict a shift to a more balanced market, which will benefit buyers.
The Impact of Remote Work on the Industry
In recent years, the shift to remote work has had a significant impact on cities, sparking serious discussions about the possible consequences. Many real estate agents are worried that workers will move away from cities to cheaper and more relaxed locations. But is this really the case, and are remote jobs worth it?
Research from Columbia Business School shows that the shift to hybrid work has a major impact on both commercial and residential properties: rents in the suburbs are rising along with housing prices compared to urban areas.
“The pandemic and its aftershocks have changed the real estate investment landscape for both the short and long term,” explains researcher Stijn Van Nieuwerburgh. “One of the pandemic’s longest-lasting impacts will be the wider adoption of remote work.”
Throughout human history, there has been a close connection between where people live and where they work. The rise of remote work has disrupted this connection, and this could have an impact on society as a whole.
Reduced Use of Office Space
During the pandemic, the use of office space has significantly decreased. This has resulted in the following notable changes:
- Before Covid-19, there were 2.5 times as many leases for millions of square feet of new office space signed annually as in the first half of 2022. This has had a significant impact on office values, which have fallen and remain lower than in 2019.
- The average cost of office space in Ukraine is expected to remain 39% lower in 2029 than in 2019.
- Migration from cities, driven by remote working homes, has led to higher housing and rental prices in the suburbs. In the central areas of cities, the trend is reversed, with prices and rents falling.
- Urban workers are choosing to live in areas with coworking and fitness centers, as well as places for recreation, both for purchase and rent. These conditions facilitate social interaction and allow for a better work-life balance.
As many companies try to bring employees back to the office, it is likely that the industry and attitudes towards work will change. More time and data will be needed to understand the full impact of the trend on society and the industry.
Changes in the Work of Real Estate Agents
Remote real estate jobs have also impacted the industry, changing its requirements and opening up new prospects for growth. With more and more companies implementing flexible working conditions, these changes are likely to remain for a long time. Therefore, it is extremely important for professionals in this field to adapt to them.
Real estate work from home, actively using innovations. VR and AR technologies play a key role in the interaction between employees and their customers:
- online platforms with 3D tours and videos make it possible for potential buyers/tenants to explore properties without visiting the site;
- virtual meetings simplify communication between clients and agents, reducing time and travel costs;
- AR allows you to show clients the possibilities of reconstructing the object, adding furniture, and changing the color of the walls, finishes, and decor.
Another obvious requirement is the need for a constant, reliable Internet connection at home. The success and productivity of remote work largely depend on a stable network connection.
Source: Freepik
New Prospects for the Growth of the Real Estate Market
The impact of remote work on the industry has expanded the boundaries of development opportunities. There is a growing need for space where home offices and workplaces can be set up.
Agencies and developers have new chances to meet this demand. The most promising areas:
- Converting existing properties into comfortable home offices. By offering innovative solutions, such as the conversion of vacant premises or the construction of separate office blocks, real estate professionals can capitalize on this trend.
- Development of coworking spaces in residential complexes. As remote workers seek community and collaboration, creating shared workspaces in residential areas can be very lucrative.
- Construction of facilities outside large cities. The growing prevalence of remote work is opening up new opportunities for the sale of properties in the suburbs. Investors have a unique opportunity to develop in rural and suburban markets, where demand is growing.
Thus, remote impact on customer requirements and opens up new perspectives in the sector. Therefore, it is important for those working in the sector to stay abreast of these changes.
The employees of these agencies are also actively switching to remoting. Thanks to the introduction of modern technologies and a stable Internet connection, they can interact with clients faster and more efficiently at various stages of buying real estate remotely, from 3D inspection to signing documents.
Also, taking into account the changes caused by the transition to home office will be useful for homeowners who want to sell their homes and developers who are planning new projects. This will help them navigate the dynamic industry and succeed in the ever-changing real estate sector.
