The real estate agents and brokerage services market was valued at around USD 582 billion in 2016 and is expected to surpass USD 746 billion by 2021.
Procurement market intelligence analysts have announced its latest market research report on real estate agents and brokerage services for the period 2017-2021. This market analysis examines the major drivers and primary emerging trends that will influence the growth of the real estate agents and brokerage services market during the forecast period. Some of the top vendors listed in this industry analysis include CBRE, JLL, Cushman & Wakefield, Eastdil Secured, and Newmark Grubb Knight Frank.
Regarding geographical analysis, the Americas is the largest shareholder in the global market, with a market share of around 35%. The US was the key revenue generating country as it has a well-defined market, which results in high yields, and possesses price appreciation potential.
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According to Angad Singh, a procurement specialist at Technavio for research on category spend intelligence, “The increasing use predictive analytics for CRE transactions will boost the demand in the real estate agents and brokerage services market. These solutions are designed to identify new investment opportunities, and brokers use data parameters such as the cost of capital, demographic changes, and worker trends to conduct empirical demonstrations regarding potential property value. The predictive analytic tools offer real-time market intelligence, helps reduce cost, and optimizes real estate strategy. This tool also offers insight in the leasing space that is used to demonstrate population growth, headcount ratio, and rent trends.”
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The new procurement market intelligence report analyzes some of the main drivers and trends accountable for the growth of this market and its sub-sections.
Cost savings
The CRE agents help buyers to obtain cost-effective office spaces at strategic locations and optimal prices. These tactics offer by the agents helps organizations reduce facility costs and increase office spaces. Various enterprises use space restructuring as a strategic lever to reduce costs and obtain operational efficiencies. Moreover, these companies look for locations based on population density and easy transport options with the assistance of CRE agents.
Demand for mixed-use centers
The rapid rate of urbanization is resulting in a rise in demand for new locations for developing office spaces. The rising need to attract labor force to these new commercial hubs is leading to the development of high-density mixed-use centers. These developments in the market will boost the requirement for real estate agents and brokerage services. Many agents offer luxury residential space, retail, office spaces, entertainment centers, and parks as a part of their services. The limited availability of urban centers has also led to the development of suburban commercial spaces augmenting the demand for CRE services in securing such spaces.
Economic development and global expansion by MNCs
The MNCs are using CRE services to help them formulate global expansion strategy, advisory support for investing or renting properties, and procuring strategic commercial properties at cost-effective rates. For instance, the investment required to scale a property in South Africa differs vastly from property growth in mature markets such as the US or Europe. A growing economy poses potential challenges such political risk, capital returns, and changing workforce dynamics. Hence, buyers are relying on CRE providers to benefit from transparency and market intelligence while transacting in these countries.
A more comprehensive analysis is available in the procurement market intelligence report titled, ‘Global Real Estate Agents and Brokerage Services Market – Procurement Market Intelligence Report 2017-2021.’
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