the commercial real estate outlook remained largely unchanged. These changes present a challenging scenario for real estate investors who rely on financing for new investments or refinancing existing ones. Despite these challenges, savvy investors may find opportunities by adopting more conservative strategies or exploring less interest-rate-sensitive sectors. REAL ESTATE INNOVATION THROUGH TECHNOLOGY ADVANCES The advent of technology and digital transactions has revolutionized the real estate industry, making processes more efficient and transparent. Digital transactions have expedited the buying and selling of real estate. Platforms providing extensive property information have made the market more accessible, and technologies like virtual reality have enabled remote property tours, a feature that has proven especially useful. EFFICIENCY AND SPEED. Digital transactions have made the process of buying and selling real estate much quicker and more efficient. Buyers and sellers can now complete transactions online, which can significantly speed up the process. Documents can be signed electronically, reducing the need for physical paperwork. TRANSPARENCY. Technology has increased transparency in the real estate market. Online platforms provide extensive information about properties, including pricing, location, features, and photos. This information is readily available to anyone with an internet connection, making the market more transparent and accessible. REMOTE ACCESSIBILITY. Virtual reality and 3D tours allow potential
buyers to tour properties remotely, which was particularly beneficial during the COVID-19 pandemic. This technology can also benefit investors who are looking to invest in properties in different locations. BIG DATA AND AI. The application of big data analytics and artificial intelligence in the real estate sector allows for more accurate property valuations, better prediction of market trends, and personalized customer experiences. Machine learning algorithms can analyze vast amounts of data to make predictions about which properties will increase in value, while AI can automate mundane tasks, freeing up time for real estate professionals to focus on more complex tasks. BLOCKCHAIN TECHNOLOGY. Blockchain has the potential to revolutionize property transactions by providing a secure, decentralized ledger for transactions. This could make transactions more secure and efficient and reduce the potential for fraud. Furthermore, the application of big data analytics and AI in the real estate sector leads to more accurate property valuations and better market trend predictions. For IRA investors, these technologies can make identifying and purchasing properties faster and more efficient. REMOTE WORK CONTINUES TO SHAPE THE URBAN LANDSCAPE The COVID-19 pandemic has prompted a significant shift toward remote work, leading to a noteworthy urban- to-suburban migration. This trend has resulted in increased demand for suburban and rural properties, as remote workers seek out larger spaces and quieter environments.
Conversely, the demand for urban commercial real estate has decreased as companies reduce their office spaces due to the rise of remote work. These trends present a mixed bag of challenges and opportunities for real estate investors. Although urban commercial properties may offer less return on investment than in the past, residential properties in suburban and rural areas could provide profitable opportunities. The dynamics of the real estate market continue to evolve in the face of changing interest rates, the rise of new technologies, and shifts in work and living trends. As investors navigate these waters, staying informed and adaptable is key. By considering these factors and adjusting strategies as necessary, investors using an IRA for real estate can continue to find opportunities and success in this ever-evolving market.
TARA BOGARD
Tara Bogard is the senior vice president of business development for Digital Trust and has more than 10 years’ experience in the self-directed retirement plan and alternative asset space. She has played an integral role in creating exponential growth in the firm’s assets under custody. Bogard holds a master’s degree in business with a focus on organizational communication from Murray State University and a bachelor’s degree in organizational communication, also from Murray State University.
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