Can virtual presence do more damage to real estate markets?

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Over the years, the real estate market has always been a sure plug for investors to make gains. Inasmuch as it's not easy to get in, those who are into a large scale real estate will also boast of substantial returns on investment. This industry can be dated to be as old as man, shelter indeed is a necessity to provide the needed comfort and security. We have seen several advancements in this industry, from bungalows to storey buildings to even skyscrapers turning a city to more of heaven on earth.

This industry has always warned off every opposition until recently. When talking about the introduction of virtual presence, technology seems to be in for a fight with the real estate market. The real estate market according to my research is a triple figure trillion dollars market. Yes, It is expected to reach nearly $640 trillion dollars this year. Wow! This industry seems to be an icing in the cake. There is no doubt that the residential sector of this industry dominates beyond competition, taking more than 70% of this industry.

Don't really see the Virtual presence doing any harm to the residential sector of real estate, in short I see an increase. Let's leave it as a discussion for another day. Where I center my focus is that virtual intelligence is beginning to do some financial harm to the real estate meeting and conference spaces. Although there has not yet been a massive adoption due to some technological limitations especially by the developing countries, I see a possible market decline in this sector as technology and environments continue to advance.

The concept of Virtual presence entails being physically present in a computer-generated or simulated environment, often facilitated by technologies like virtual reality (VR) or augmented reality (AR). This technological advancement allows users to interact with and experience a digital space as if they were physically there, creating a feeling of realistic engagement. In recent years, the rapid advancement and adoption of virtual presence technologies has transformed the way businesses operate, particularly in the realm of meetings and conferences.

There has been a leveraged here to save both cost and time, this shift has raised expected questions about its potential effects on the demand for physical spaces like conference rooms in the real estate market. Will virtual presence actually take over the meeting rooms of the real estate industry in the next twenty years?, or am I being too far noting how fast technology is advancing nowadays.

The introduction of video calls also played a competitive role when it was introduced some years ago, yet the threat was not really felt I must say, Virtual reality (VR) has changed the whole story. We have seen it widely used in the gaming industry booming the gaming market as users are always excited to get a sense of presence in their gaming activities.

Virtual Presence Shaping Business Mentality

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Cost cutting is what every business aims to do to enlarge the revenue territory. There is a continuous rise of virtual meetings and conferences and I must say, the industries involved are benefiting. The aforethought of where a meeting will be held has been mitigated. It is easy to hold a meeting and meet up with several other business activities and you could do this from the comfort of your home. All that is required is a one time expense of purchasing the needed tech gadget to be connected to the virtual realm.

Platforms offering virtual exchanges provide an alternative to traditional face-to-face meetings, allowing participants to connect from anywhere in the world. This evolution in communication should not be undermined as it has the potential to reshape the dynamics of the real estate market, specifically in the realm of meeting spaces.

Professionals have always needed comfort and privacy, even with that there is an added security in the virtual realm meeting. I see this industry growing quickly to replace conference rooms. Nevertheless, there is always an opportunity out there to leverage the conference rooms and make gains. I guess real estate investors have to be on their drawing board soonest or they may soon be swept away from this industry.

Adaptation and balancing

As earlier said, the best of investors know how to adapt to changing market situations. Technology always favors the smart, the needed incorporation is needed to balance every expected market decline. One of the moves that is expected from real estate experts will be them venturing into virtual property marketing, where buyers could explore spaced remotely. Although in a sense, the physical industry will not be completely pushed off when it comes to a needed face to face interaction in which certain situations will demand in-person interaction.

Face-to-face meetings without doubt fosters a sense of connection, accommodation, collaboration, and trust that may be challenging to replicate entirely in a virtual environment. Due to this, businesses are likely to retain a spot for offline meetings to promote some form of balance between virtual and physical interactions based on their specific needs and preferences.

Shrinking the conference and meeting sector of the real estate industry seems inevitable, the question to also here is, could the prices of this physical meeting space increase in the process as a lot may have to change from conference and meeting halls to maybe residential homes? This can also create a marketing opportunity for those who still stick around in this sector to leverage on its scarcity at needed times.

To conclude let me add, the real estate market is facing a future market decline when looking from the conference and meeting hall markets. Investors need to be ready to combat whatever technology has to throw at this industry. Change is a constant and inevitable thing, we have seen technology bring down several markets and raise new ones which have promoted business. Though it in the process brought loss, it has also opened doors for a lot to become independent millionaires. As I earlier said, technology will always favor smart investors in an ever evolving market.

Posted Using InLeo Alpha