Even when the credit squeeze abates, probably early next year, the property market, with its heavy dependence on borrowing, will face a fundamental shift: Historically low interest rates, maintained by central banks in the United States and Europe for much of the past decade, are gone and will not return anytime soon.

Real estate has been the industry responsible for some of the most dramatic changes in Europe over the past decade. Vast investments in coastal regions have turned Spain into the property-boom capital of the Continent, while breathless development has likewise helped transform London into a city of gleaming, innovative office towers.

The Real Estate Market in Europe is changing. This change is driven by two forces outside of the Real Estate industry. The strength of these forces are so strong however, that their impact on the Real Estate Industry is unavoidable. These two forces are technology and consumer pressure. More precisely, the Internet and consumer protection through regulation. The aim of this report is to consider these two forces and how they affect the way real estate agents conduct business today and how in the future, agents can adjust their working practice to benefit from the changing face of the market.

Most people have some experience of the internet. Surfing the web now competes with television in terms of number of hours spent each day. As it applies to a Real Estate business the internet is starting to become more and more important. A website is seen almost as a necessity today, although for reasons I will explain, the effectiveness of over 95% of individual company websites as a means of attracting clients is negligible or completely non-existent. Most traffic these websites receive comes via another form of advertising, be it newspapers, business cards or as a point of reference after initial contact has already been made with a potential client. This said, it is expected that within 5 years, 80% of all property transactions will be initiated through contact via the internet.