Proactive use of technology is the key to success in this industry
London, United Kingdom (PRWEB) October 25, 2012
Few industries do well during economic downturns, and the Real Estate Agencies industry is not among them. A fall in property prices during 2008-09, combined with risk-averse lending institutions making finance harder to come by, cut revenue for real estate agencies. According to IBISWorld industry analyst Craig Shulman, “the worst year was 2008-09, when an 8.5% fall in revenue triggered office closures, staff cuts and pay freezes in the industry”. Overall, industry revenue is expected to remain stagnant with an annualised decrease of 0.7% over the five years through 2012-13.
With real estate agencies earning such a large proportion of their revenue from commissions on property sales, industry performance is linked to the value of real estate in the United Kingdom. Therefore industry performance will improve with the expected recovery of the property market over the next five years. Due to the continued effects of government austerity measures and the European debt crisis, industry revenue is forecast to increase only marginally over the five years to 2017-18.
A recent government review was unsatisfied with the level of competition in the industry and called for service innovation to provide customers with improved value. Shulman adds, “the online sphere is a prime area for innovation and although an increasing share of agents' marketing expenditure is dedicated to online campaigns, there remains a lot of capacity for growth and diversification in this area”.
The Real Estate Agencies industry is highly fragmented, with thousands of local and regional players. The four largest operators are estimated to account for only 11% of industry revenue, with the remainder being largely generated by smaller operations in local areas. This gives the industry a low level of market share concentration.
For more information on the Real Estate Agencies industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
Real estate agencies are intermediaries in the buying, selling and renting of real estate on a fee or contract basis. Additional services provided by companies in the industry include advisory activities and appraisal services in connection with buying, selling and renting of real estate, and real estate escrow agent activities.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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