As Rich Levin had stated on his book, Guide to Windows Me, “The moment somebody buys a computer, it’s already obsolete. Computer technology has always evolved rapidly.”
This concept of Levin also applies to what the real estate industry is experiencing right now. The advent of new technology has gradually posed an impact on most real estate properties thereby creating a shorter life span of most edifices. The fact that the construction of new buildings and offices cannot match the pace technology is taking on these days will definitely pose a major problem in the real estate industry in the near future.
The specifications of the on-going constructions or even the newly built buildings are not fit for the new technology. Such that when the time comes that the building is fully functional, renovations are apparent just to make some room for the new technology. And if it continues for the next twenty years or so, the real estate business will absolutely fall and crumble down.
Also, some futurist contend that the growth of real estate will be sluggish and will continue to do so in the next few years due to the fact that the industry was greatly affected and is still experiencing some effects from the things that are happening in the society today. What goes on in the real estate industry is some sort of an aftermath of events like the alarming growth of bankruptcy cases, merging activities of giant companies, and the September 11 tragedy that rocked the world with tremendous blast.
This, in turn, created a snowball effect in the industry. Little by little, there are factors that contribute to the creation of one big worldwide financial crisis, and the real estate industry is not exempted.
Some futurists also contend that the escalating prices of crude oil in the international market can also pose a great upshot on the real estate arena. This is because the instability of the oil prices triggers the growth of costs of commodities.
If there is any one formidable obstacle to the realization of free trade, progressive globalization and fair market prices, it is the staggering effect of oil prices. And to proclaim that the slogan of globalization, competitive markets, fair prices, and booming real estate industry under the regime of a shaky economy is to utter an oxymoron – a glaring contradiction in terms.
However, things may continue just the same, corporations will still tie up with real estate investments. But one thing’s for sure in the next century, the real estate industry will be a marketplace of hard selling and arguments all centered at one common point – to obtain a lesser price.