The real estate online burst into the sector at a thunderous pace making competition to traditional real estate. And it is that, the changes that come from the hand of technological advances are inevitable. This has also happened in other sectors, in which digital platforms are having a strong demand from the ...

The real estate online: a significant competition for traditional real estate

The real estate online: a significant competition for traditional real estate

Real estate online burst into the sector at a thunderous pace making competition with traditional real estate.

And that is because the changes that come with technological advances are inevitable. This has also happened in other sectors, in which digital platforms are having a strong demand from customers (taxi sector, hotelier, travel agencies ...), affecting workers in more traditional activities. Undoubtedly, digital platforms offer services at a much lower price .

The end of digital real estate is the same as traditional real estate: search for real estate and buyers, although they do it online . Currently we can find numerous agencies that work only online . Among them: Lemonkey, Cliventa or Housell. In order to get an idea of ​​the competition, it has been calculated that in the United Kingdom, digital companies cover 5% of the market and that this figure can be tripled within 3 years.

According to Ignacio Martínez-Avial , (CEO of Corporate Business Development of Aguirre Newman and head of the new Aguirre Newman Digital division), these real estate companies "have come to stay" and cover a market group "that does not need face-to-face advice".

traditional real estate companies do not feel threatened yet , since they have characteristics that these new real estate companies do not have: as a personalized professional advice for each client , with which the deal is direct, in person, from the moment you visit the property until the end of the negotiation. And it can not be denied that this is a great virtue, because buying a home is a very important decision and there are always customers with specific needs.

But similarly, digital agencies defend their activity , since they ensure to offer a personalized service even if the treatment is given by telephone or virtual. Arturo Ballester, CEO of Lemonkey believes that "The challenge is that anyone who wants to sell their house knows that there are virtual real estate and see it as a real option." Likewise, they also have their particular advantages: access to them is quick and easy. Anyone can visit a website from their mobile phone and hire their services, whose rates range from low cost plans to premium services. In addition, these real estate announce that they do not charge commissions (although some set a rate per sale).

The lack of regulation of online real estate

Currently, digital firms act in a context of lack of regulation of their activity and this allows them to be more competitive and lower prices.

On this aspect, Jesús Gil (CEO of Gilmar) has shown his concern about the bad management that virtual agencies can have and says: "Not everything is the price. I can give a cheaper service, but of less quality. " To avoid problems, the director has asked the Government to start "putting filters and demand guarantees" to the real estate online .

But, after all, for now, the real estate online have moderate results. We will have to wait to see how this activity develops and what influence it ends up having in the sector and customers.

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