Economic growth and a rapidly growing urban population is expected to increase the demand for residential and commercial buildings brokers. The increasing number of rural residents migrating into cities is resulting in increasing demand for access to affordable housing and commercial spaces.
This provides a significant opportunity for real estate service providers to improve housing, retail and other commercial services.
According to global analytics from Research and Markets, the global real estate agency and brokerage market is expected to grow from $960.12 billion in 2020 to $1008.95 billion in 2021 at a compound annual growth rate (CAGR) of 5.1%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $1351.1 billion in 2025 at a CAGR of 8%.
Accounting for 53% of the market in 2020, Asia Pacific was the largest region in the global real estate agency and brokerage market. North America was the second largest region at 23%. Africa was the smallest region in the global real estate agency and brokerage market.
Real estate companies are also leveraging artificial intelligence applications to perform various functions such as property search, building management and design. Artificial intelligence is helping real estate companies to find people looking to buy or sell properties, find a suitable property based on customer requirements, and redesign office spaces based on user behavior.
According to a research conducted by AI technology provider- Drooms, around 54% of property professionals surveyed already use artificial intelligence to improve keyword search and 69% believe AI gives their companies competitive advantage by enabling high speed search of documents. For instance, REX, a real estate company analyses data from third parties such as Google to determine willingness of a person to buy or sell a house.