Speed can be defined as the rate at which someone or something moves or operates or is able to move or operate. In the real estate world, the word speed probably didn’t exist. The entire real estate ecosystem moves so slow.
Raising money and buying
It starts with raising money, where you have to have lots of meetings and appointments and it goes over to the construction phase, where it takes ages until a building has been completed.
It then takes so long to transfer ownership from one party to another during a transaction process. In a lot of countries, it is still believed that buying your house is an investment for your life. Hence, a mortgage is issued for 20 to 30 years. The word mortgage contains the word morte, which stands for “until you die”. This is not the case any more.
Constructing a building
The Empire State building was built between 1930 and 1931 and it was the largest building at the time. The Burj Khalifa was built between 2004 and 2009 and is the largest building at the moment. So, it took only a bit more than a year to build the largest building in the 1930ths and it takes nowadays more than five years to build the largest building. So, the efficiency in construction has reduced after 70 years.
Nevertheless, the project was so complex, that it required a lot of coordination with the individual stakeholders and a lot of planning. One of the biggest problems during the construction phase is the errors and mistakes, which were occurring. These are always resulting in a delay.
Luckily, we are in a time where we can utilise Building Information Modelling BIM, virtual reality, augmented reality and live cameras to plan and coordinate the construction.