7 Trends to Watch in Real Estate for 2022

No industry exists in a vacuum—and real estate is no different. The trends that define so much of what happens this year will impact almost every sector of the business world. Don’t know where to start? Worry not: Knightsbridge Park’s strategy team has summarized seven key trends you need to know across the spectrum of real estate, tech, social media, advertising, and consumer behavior.

BY GAVIN MANLEY

1. Crypto + Real Estate = The Future?

Some forecasters predict that the most critical real estate story of 2022 will center on the rise of digital currencies. In fact, there are almost 10,000 different digital currencies today (as of January 2022) and new iterations appear all the time.

As the name suggests, ‘digital currencies’ refer to money that exists in the digital realm. As such, you cannot touch or hold it – much like the dollars that sit in you PayPal account. ‘Bitcoin’, ‘digital wallets’, ‘ICOs’ (Initial Coin Offerings) and many other terms associated with cryptocurrencies have already crept into the parlance of our industry.

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More and more, sellers and agents are listing homes for sale with a Bitcoin price or alternatively, a hybrid version – where both US dollars and Bitcoin is accepted. This trend appears to have emerged in part as a marketing tactic to generate more buzz in the short term.

Typically, it’s luxury high-end listings that advertise a Bitcoin price – where many of the prospective buyers already have digital currencies and are attracted to investments like real estate which will allow them to convert their Bitcoin into something concrete.

The rental market too is shifting to adapt with some landlords accepting rent payments by Bitcoin. Last April, LA-based real estate firm Caruso announced its partnership with ‘Gemini’, a cryptocurrency exchange to begin facilitating rental payments. For Rick Caruso, Founder and CEO, digital currencies offer the potential for a host of value-added experiences for tenants. “We envision a myriad of opportunities where we can better engage our guests and enhance their experience on properties like introducing blockchain-enabled rewards and enabling cryptocurrency payments,” he said.

So now is most certainly the time to tap into your network and find those who know about how digital currencies work in real estate transactions before someone asks you “Do you take Bitcoin?”

2. Customer Service & CX (Customer Experience)

The pandemic has brought ‘customer service’ and what that actually means under the microscope once again. As companies continue to adjust to all manner of operational challenges – customers in 2022, it is predicted will reward brands that help them alleviate stress. Moreover, a recent report by Forrester claims that around six in 10 US consumers believe that companies should have figured out how to handle pandemic-related disruption by now.

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The rise of delivery apps has helped redefine expectations about what good customer service looks like. In 2022, residents and tenants will demand the same high levels of customer service from the places they work and call home. Tenant Experience Software like HqO and Equiem will become much more commonplace. These customer-facing applications allow tenants to control and personalize the lighting or temperature in their workspace for example.

It all goes back to the ‘experience’ and “the quality of that experience often determines whether a tenant moves in, stays or leaves” according to Dr. Vincent Chow, CEO of En-trak – a proptech-solutions company.

3. For Influencer Marketing, Small is Beautiful

The “world’s first neuroscience study on influencer marketing” has claimed that the medium is 277% more emotionally resonant when compared to TV ads. Influencer marketing also scores high on recall and is judged to be 87% more memorable than TV ads according to the 2019 study.

The reason behind the stats? In contrast to TV ads, consumers do not see influencer marketing as an interruption of their entertainment content.

And it’s widely reported that consumers are more likely to act when brands provide an experience that takes them on a journey – one that goes beyond a static product post. Influencers provide the perfect vehicle for these narratives.

What’s more, studies increasingly point to the fact that investing in nano-influencers (1,000-5,000 followers) or micro-influencers (under 25,000 followers) will yield a better return. These creators with smaller followings will become the “A-listers of the influencer marketing world” (Ogilvy Insider Intelligence Social Trends).

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Consider expanding your frame of reference – thinking creatively about specific types of influencers who share some of the same values with your real estate property (e.g. similar aesthetic, lifestyle, target audience etc.)

Look beyond those activations that rely on the usual beats of the year and instead think strategically about your goals for influencer marketing.

4. AR is Set To Soar

AR (augmented reality) technology is going to be one of the key innovations for many businesses in 2022. In fact, this year the number of mobile AR users is expected to grow to 3.5 billion.

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AR allows potential buyers to ‘tour’ a property via their smartphones – providing an immersive experience, almost as real as an in-person tour – but with greater convenience and better time savings.

Agents can also use AR to tweak the design of a room on a virtual tour to align with specific preferences of prospective buyers. Though many commercial and residential real estate professionals already use drones to capture aerial imagery, we expect the adoption rate of these tools to grow exponentially. You can expect to see greater instances of drones being used to capture compelling visuals – not only for marketing materials but for buyers and tenants who want to thoroughly inspect properties before purchasing or even renting.

5. Higher Spend on Social Ads

Despite historically low budgets, marketers are spending more on social ads according to research studies by Hootsuite, a leading social media company.

However, more than half (51.4%) of the marketers that were surveyed said they plan to increase their paid social spend in 2022. Where do they plan to allocate these resources? While last year the majority of the marketers disproportionately pointed to Instagram, this year investment in Facebook, YouTube, and LinkedIn has caught up.

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For real estate marketers, gaining a competitive edge through holistic, all-encompassing social strategies will be a key driver of success in 2022.

Not surprisingly, creativity will be of equal importance as real estate brands compete for consumers’ share of mind – particularly in the sea of sameness that’s prevalent in much of the social media marketing that’s served up to consumers today.

6. Consumers Crave Control – Seek Meaningful Experiences

The widespread uncertainty of the last two years has compelled consumers to question every aspect of their lives – from how and where they live and work, to what resources they can reasonably allocate to recreation, fitness and even annual holidays. “Feelings of precariousness and financial insecurity both created and exaggerated by the pandemic mean that consumers are looking for a sense of control” according to Mintel’s Global Consumer Trends for 2022.

And yet, beyond feeling “like they’re in the driver’s seat”, consumers, more than ever want to feel special. In this age of hyper individualization, we can expect to see those brands that respond to consumers’ unique needs with quick and easy solutions rise to the top. This year, creating meaningful connections between brands and consumers will be more important than ever before.

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Broad mass marketing strategies for real estate brands will only take you so far this year. Campaign messaging will need to be constantly re-evaluated over the next 12 months to ensure brand communications are aligned with consumers’ need for clarity, transparency and flexibility.

Understanding all of the component parts of what’s on offer – what’s included and what’s not, the key features and overarching benefits – all have a part to play in how consumers will ascertain value and whether brands are delivering on what they promised.

Expect to see a growth in “predictive technologies” which can anticipate adverse events – allowing consumers to retain that sense of control while planning for the future.

7. Omnichannel Engagement & Social Media

Today, almost two thirds of consumers (64.5%) receive breaking news from social media platforms like Facebook, Twitter, YouTube, Snapchat and Instagram – instead of traditional media sources. According to software company HubSpot, omnichannel engagement will continue to change the way consumers interact with social media.

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The rise in the availability of information and entertainment content across multiple platforms will afford real estate brands the opportunity to expand their audiences and grow consumer connections. But as consumers are no longer loyal to just one channel, creative concepts and content strategies that work across all platforms are better positioned for success.

Brands that publish content that is consistently honest and informative while still placing a premium on entertainment value have the opportunity to win consumers’ hearts and earn their trust over the long term.

Originally published on Knightsbridge Park’s blog.