The Impact of International Mobility on the Real Estate Industry

The Impact of International Mobility on the Real Estate Industry

November 4, 2024
Read Time:
6
min

How Global Movement and Technology Are Shaping Property Markets

International mobility is transforming the real estate industry, driven by the increasing movement of people across borders and the rise of digital solutions. As people relocate for work, study, or better opportunities, the demand for housing has grown, creating new challenges and opportunities in property markets worldwide.

Evolution of International Mobility: From Ancient Diplomacy to Modern Migration

The concept of global mobility has been present throughout history. In the 3rd century BC, the Romans often sent ambassadors as part of their foreign policy, fostering early forms of diplomatic mobility. Today, international movement continues to play a crucial role in shaping societies. People migrate for diverse reasons, from economic opportunities to educational pursuits, creating a significant impact on the housing market.

In the 21st century, over 270 million people live outside their country of birth. This mobility has fueled the demand for real estate, especially in global hubs. In cities like Dubai and Singapore, 30-40% of real estate demand comes from international residents, reflecting the importance of accommodating a mobile population. With the global population growing by 5.8% annually over the past decade, the pressure on urban housing markets is evident.

Challenges in the Real Estate Market – Mid-Term Rentals

Despite the opportunities presented by international mobility, the real estate industry faces several challenges:

  • Lack of Digitalization: Many real estate processes remain manual, with limited integration of digital tools. This leads to inefficiencies and a slower experience for property owners and tenants.
  • Limited Scalability: Without digital solutions, real estate services struggle to scale up. This means that markets often cannot keep up with the demand for housing, resulting in delays and limited availability.
  • High Costs: The processes involved in international renting—like background checks, legal procedures, and property management—are costly. These expenses can deter potential tenants and make it difficult for landlords to provide affordable options.

These issues can make the housing experience frustrating for international students, expats, and those seeking temporary accommodation.

Case Study: The Rise of Lodgerin

Lodgerin emerged as a solution to these challenges, designed to streamline the process of international mobility. The company was founded by Óscar Rubio, who experienced these mobility issues firsthand, recognizing the need for a better way to manage international accommodation and mobility processes. Lodgerin validated its approach with input from clients and agents involved in mobility, focusing on three main concerns: security, visibility, and cost.

Lodgerin has built the first platform to simplify the entire mobility process, creating an ecosystem that benefits both property owners and organizations. The platform serves investment funds, property managers, universities, and companies, helping them manage rentals for mid-term stays (1 to 12 months).

How Lodgerin Works: A Digital Solution for a Complex Market

Lodgerin’s technology supports property owners and organizations throughout the rental process, from listing properties to managing tenant relationships during their stay. By providing a single platform, Lodgerin allows both sides to coordinate seamlessly. This approach has three key benefits:

  • Reduced operational costs: The digital platform automates many of the processes involved in property marketing and management, saving time and money.
  • Enhanced communication: Improved interaction between property owners and tenants ensures that needs are met quickly and efficiently.
  • Greater visibility and monitoring: Lodgerin’s platform provides real-time tracking of stays, helping to ensure a smooth experience for tenants and relocated individuals.

With a philosophy of "We do care," Lodgerin combines advanced technology with personalized customer service. Founded in 2022 by Óscar Rubio, the company now manages over 30,000 rental units across cities like Madrid, Barcelona, Lisbon, Milan, and Dubai, and has recently expanded to Miami, Florida, opening a new commercial office.

Conclusion: The Future of International Mobility and Real Estate

As global mobility continues to rise, the real estate market must adapt to meet the needs of a more mobile population. Platforms like Lodgerin show how technology can help address challenges like high costs and limited scalability, creating better experiences for property owners and tenants. By embracing digital solutions, the real estate industry can unlock new opportunities and support the growing trend of international living.