It’s impossible to predict exactly what the real estate industry will look like in five years, but given what we’ve seen this year, I expect we’re going to see some significant changes.

AI will continue to create efficiencies at scale. It will change how agencies operate, what agents spend their time doing, and what consumers actually need from a real estate professional.

I think we’ll see two types of agencies emerge.

Two agency models

The first will be the mega brands. Think super agencies with large numbers of salespeople operating across multiple locations in a market. They’ll have the scale, resources and technology to service a huge number of clients.

The second will be incredibly nimble teams. With AI taking away much of the heavy lifting around administration, data entry and repetitive tasks, I believe a small team will eventually be able to do four to five times what an operation of the same size can do today.

Agents will be able to sell and manage more property than ever before because their roles will change so much.

For agency leaders, this raises an important question about how we structure our businesses. Rather than automatically hiring another administrator or salesperson as the business grows, we need to look at how much more productive our existing team could become with better systems and technology.

That means reviewing where time is being spent, identifying repetitive tasks that can be automated, and building processes that allow people to focus on higher-value work.

But technology won't eliminate the need for good people. If anything, it will make the human side of real estate more important.

The skills that leaders must leverage

As AI takes on more of the operational workload, the skills that differentiate a great agent will become clearer.

I believe the essential skills will be:

This will also change how we recruit and develop agents. Technical skills and industry knowledge will still matter, but I'd be placing just as much emphasis on someone's communication skills, work ethic, and ability to adapt. You can train someone to use a new system. It's much harder to teach them to genuinely care and to be a good culture fit.

Clients are also going to have access to so much more information. And too much information can lead to analysis paralysis. People can research sales data, compare suburbs and investigate properties before they ever speak to an agent. What they can’t always understand is what’s happening on the ground.

Local knowledge will become more valuable

This is where I think intimate local knowledge will become paramount.

Why is one suburb worth more than another? What makes a particular street desirable? How should you present a property in our market to achieve the best result, whether you’re selling it or leasing it?

These are the kinds of questions that require more than a data point. They require experience, context and an understanding of what buyers and tenants actually value.

As consumers become better informed, agents will need to do more than provide information. They’ll need to interpret it, challenge assumptions when necessary, and help clients understand what it means for their particular situation.

For agency leaders, I'd be looking at how we're developing that knowledge across our teams.

Are our agents regularly inspecting properties in their core areas? Are they having enough conversations with buyers, sellers, landlords, and tenants? Do they understand why certain properties outperform others, beyond what the sales data tells them?

It's one thing to have access to market information. It's another to be able to sit in someone's lounge room and explain what it means for their property and goals. That nuance will become increasingly valuable.

Systems and compliance will matter more

I also expect we'll see more compliance and regulation, both around AI and across the real estate industry. Agencies will need the right systems and processes in place to manage that complexity. AI will play a role in monitoring workflows, supporting compliance and helping teams stay on top of their obligations.

But technology alone won't solve everything. The business still needs clear processes, accountability and people who understand their responsibilities.

If I were looking at how to prepare an agency for the next five years, I'd start by reviewing the systems already in place and build from there.

The goal should be to build a business that operates more efficiently, with less reliance on the principal to oversee every little thing.

Ultimately, the agencies that thrive over the next five years will be those that combine the efficiency of technology with the strengths of great people.

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