Ryan Mahoney (Dubai, UAE) has extensive experience of the real estate market as the owner of Cencorp, a conglomerate of property-related businesses. Today, Ryan Mahoney serves as CEO of Cencorp. This article will look at the evolving role of real estate brokerage firms amidst a slowdown in many housing markets around the world.
The Real Estate Agency and Brokerage Global Market Report 2022 polled major companies operating in the real estate agency and brokerage industry, including the likes of Berkshire Hathaway Inc., Realogy Holdings Corp., FirstService Corporation., Savills Plc., Sekisui House, CBRE Group, Mitsui Fudosan Co. Ltd. and Jones Lang LaSalle Inc. The report suggested that the global real estate agency and brokerage market was on course to grow from over circa $1.22 billion to $1.34 billion between 2021 and 2022, demonstrating an impressive 10% compound annual growth rate. This growth was largely attributed to companies rearranging operations and benefiting from a post-COVID-19 recovery, with the report predicting that the global property market would exceed $1.91 trillion in value by 2026.
While the report predicted a rapidly growing urban population and economic growth driving an increase in demand for residential and commercial building brokers, a Redfin report painted a less positive picture, indicating a slowdown in the housing market as mortgage rate increases started to hit home. Nevertheless, in spite of declining demand for homes, median sales continued to climb throughout the first two quarters of 2022 according to the Redfin report, increasing by 14.8% in May 2022 compared with figures for the same month the previous year. The Redfin report suggested there had been no decline in prices in metro areas in May 2022, with some reporting a considerable price jump.
The real estate brokerage industry is currently undergoing a major transformation. While traditionally real estate agents have served as gatekeepers to the market, today, increasing numbers of sellers and buyers are turning to online resources and tools to sell and buy homes.
In order to stay relevant, forward-looking real estate brokerages are seeking out innovative new ways to add value to their clients, from providing more personalized services to leveraging the latest technology to streamline selling and buying processes. Experts predict that, as the market evolves, the success of any real estate brokerage business will depend on its ability to adapt in line with changing customer needs and expectations, placing an emphasis on agility in uncertain and rapidly changing times to come out the other side with a successful brokerage business.