Key Digital Transformation Trends in Real Estate Technology Every Realtor Should Stay Informed About
Technological advancement occurs at a very fast pace, and every market is soon adapting to it. In today’s world, no industry is left behind, including real estate business with many businesses using more and modern technologies. Nonetheless, real estate businesses need to adopt various real estate technology trends to survive the race. Wondering which trends? This blog is your answer!
Technology is everywhere! Thus, as in any other sector, technology has also affected real estate. Incorporating new technologies into real estate reshapes the traditional operations of these businesses, giving them the icing on the cake. Moreover, the real estate market is the largest segment of the world economy that has a total value of approximately $196 billion, based on the Statista report. Amazingly, the real estate industry was the last one to adopt digitization. Nevertheless, now it is addressing it actively by adhering to the best real estate technologies trends.
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However, today businesses must improve their investment decisions as well as property management in these times of high tech digitization. Therefore, real estate agencies must use some of the essential technologies in real estate such as artificial intelligence, the internet of things, virtual reality, among others. Furthermore, most of the real estate enterprises at present have decided to develop real estate apps.
These modern technologies are transforming the real estate industry with the help of digital trends in real estate. It is evident that the real estate industry is taking advantage of the best tech trends such as automated property management, virtual reality home tours, and AI-based data on buyer behavior.
Want to know more about the top real estate technology trends? Here we go!
- New Business Models in the Real Estate Industry
Modern real estate technology firms continue to develop new techniques and models to suit the new and sophisticated generation.
Amazon has collaborated with the largest residential real estate brokerage company, Realogy, to develop a Turnkey solution for home buyers. This is a real estate buying program of Amazon and Realogy. Therefore, Turnkey links a customer to a property agent and ensures the customer has a say in the buying issue.
Furthermore, after buying a house, Amazon assists with transforming it into a home by giving free technologies, such as installing a TV and smart products, all depending on the amount of money a customer spent on the house.
As such, a non-traditional business model such as iBuyer exists in the real estate industry. With modern technology, property selling is made easy. An automated valuation model can help you accomplish this. Since iBuyer’s first appearance, many customers have decided who to turn to first: real property agents or iBuyer. I’m waiting for the newest platform with an automated buying and leasing experience.
- Proptech: Biggest Change in the Real Estate Industry
Proptech is an abbreviation for property technology. It involves the use of technologies such as cloud computing, mobile solutions, artificial intelligence, and the Internet of Things (IoT) to enhance the real estate industry with more efficient, state-of-the-art solutions. As such, PropTech solutions aim at motivating and adjusting how people buy, sell, rent, and handle property.
Proptech solutions, for example, can help you manage your smart home’s temperature controls, smart lighting systems, smart security systems, data-driven property management system, automating business processes, property virtual tours, and many more. With Proptech solutions, real estate businesses have an easy way of enhancing their efficiency, improving service quality and reducing costs, putting you a step ahead.
It is quite obvious that Proptech is very popular due to its largest potential for revolutionizing the real estate industry. Let us now learn about some of the best real estate technology trends and Proptech trends.
Real Estate Technology Trends Transforming the Industry
Here are the top tech trends in real estate that prove to be game changers for real estate industries today and shortly.
Trend 1: Millennials and Gen-Zs Run the World
I know, and our first trend is, strangely, nothing like a real estate tech trend. However, it gives direction on some real estate technology trends. It does come as a surprise that most app users are from Millennials or Gen-Z. Our Gen-Zs and m-guys are also very ambitious and determined to have their properties that are supported and have modern features such as data analytics management systems, AI driven equipment, etc. It cannot be denied that this is not a real estate tech trend.
Nevertheless, you must understand what the clients need as well as their buying habits and then integrate the technological advancements with suitable solutions.
As far as new home buyers are concerned, ‘One trend we are witnessing is towards wellness homes that support one’s well-being.’ — Farnoosh Torabi, Personal Finance Expert and Host of SoMoney Podcast
Trend 2: Artificial Intelligence and Machine Learning
A closer look will reveal that every industrial sector is now incorporating AI and ML in their software solutions or applications. AI is therefore also one of the best real estate tech trends and a point of confluence, in the real estate sector. Interestingly, 78% organizations are using AI for the prevention of concurrent activities such as timesheets, 82% for prevention of paper work, and 79% for prevention of scheduling according to the PWC report.
This was the time when the process of searching, viewing, selling, and buying properties was an overwhelming task. Thanks to the new commercial real estate technology trends. These issues have long been farewelled with us. Exciting, right?
Trend 3: Blockchain Technology
So to all my tech-savvy buddies, I am sure you are curious on how blockchain technology can be used in real estate. That is correct, it can and surprisingly, it is the most popular Proptech trend. Wondering why? Since purchasing or even leasing a property will need a big sum of money, and your personal information.
The transaction of expensive value assets like land and real estate never took place through digital means in the olden days. They often involved offline transactions, including direct contact and cash. Nevertheless, Blockchain technology as one of the most significant tech trends in real estate, provided numerous opportunities to disrupt this offline procedure. Therefore, real estate is undergoing one of the most dramatic revolutions, with Blockchain being the force.
Trend 4: Virtual Reality
The use of virtual reality in the property business is also common in this age and is an easy and fun way to explore and acquire property. How? VR is a virtual tour of properties that can be done virtually to remote clients who cannot access the property. The real estate industry has gone into the metaverse of technology with the deployment of virtual reality, as in our beloved Spiderman.
With the virtual tours, your clients can easily visit the property from any sitting place. VR is gaining popularity because sellers and buyers no longer need to meet in person in order to strike deals that are more sustainable and sophisticated.
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Trend 5: Internet of Things
Here, IoT means the devices and gadgets that are digitally connected to the cloud, which enable them to send and receive valuable information any time. This real estate tech trend can be a real meaningful change in its integration. This is what gave us a smart world of the interconnection between the physical and digital worlds due to IoT.
Additionally, Proptech is a uniqueness factor as IoT development is used to make clients’ comfortable. The sensors and smart alerts in IoT-integrated home devices warn property owners on the onset of any issues that may be experienced at home. In this sense, IoT can be regarded as one of the Proptech trends that enhances sustainability and energy efficiency, leading to significant savings in the long run (and making property owners happy).
Trend 6: Mobile Applications Usage
Today, people can pay bills, do shopping and so on by just one click of a mobile phone. Therefore, in Proptech, searching, purchasing, or selling properties, as well as getting an agent using different kinds of mobile apps, is one of the most successful Proptech trends. Buyers can digitally meet sellers or search for a particular property using these applications. Ultimately, it saves time, effort, and transportation costs and eventually makes all processes transparent.
The mobile apps in real estate have been there for quite some time, but the next few years will show an improvement in experience with the use of technologies such as Business Intelligence, big data, 3D printing, 5G, and drones.
Trend 7: Big Data
Real estate sites tailor customers’ experience by showing related properties to past ones selected. In the future, big data will play a crucial role in real estate. This enables the software to suggest more sensible and individual searches. For instance, Redfin uses the Amazon Web Services complete big data stack.
Trend 8: Real Estate Crowdfunding Platforms and Fractional Property Purchase
Real estate crowdfunding platforms provide a platform where customers can raise small capital amounts from a large number of people. They are the evolution of equity investment where people become investors and customers. However, you need to have a bigger pool of investors. Crowdfunding is a source of money that companies will probably never raise.
Fractional ownership is where a real estate asset is split into fractions, and each fraction holder gets proportional rights and duties in the property. Fractional ownership has become popular, especially in vacation destinations and luxury property markets, as it is an affordable way of giving more people a share in high-end assets. This is an excellent method for real estate investors who are interested in the benefits of owning real estate, particularly prime property, without all of the expenses.
Trend 9: Other high-technology devices and drones
Drone photography is the latest real estate fad and provides a compelling and creative angle when reviewing a property. Drones are used for any kind of real estate listing, from apartments to resorts to vacant lands and commercial properties.
Modern in-drone camera tech can provide video footage, overhead map images, and 360-degree panoramas. This also gives more details and information that is clear for the would be customers.
Trend 10: Data Analytics and Data Visualisation Software
It becomes tougher to separate important information that needs to be filtered and unimportant information. Nevertheless, visualization helps in filtering through this information very rapidly. Additionally, many people comprehend information more effectively in a visual format rather than in writing.
Data visualization is one of the most important parts of any business intelligence platform because it has many advanced analytics. It helps organizations make sense of the large amounts of data created. It can be displayed in the form of a graph, bars, or a pie chart, among other methods.
Trend 11: Improvement engagement using real estate marketing automation
Automation has found its way in almost every industry, including real estate. The adoption of chatbots and virtual assistants to ease automation is gaining momentum in the real estate industry. Together with websites, they can automate an answering machine or first respondents to frequently asked questions. This facilitates more engagement with users and makes them stay longer on the website. Real estate marketing automation relieves agents from a lot of repetitive work and gives them more time on other crucial tasks.
Conclusion
These 11 trends don’t just shape the future, they redefine the way realtors work within this modern era of real estate technology. Each trend comes with its own way for the real estate professionals to improve their services, streamline operations and better connect with the clients. In the age of digital transformation, it pays to incorporate these innovations into your business model.
The mobile app development company in India can serve as a stepping stone for realtors who want to take a major leap. Mobile apps give ultimate convenience and accessibility and let your services appear literally in the fingertips of possible buyers and sellers. Leveraging mobile technology will offer you opportunities to create tailored experiences, real-time updates and interactive elements that speak to today’s customers. Always, realize that in the ever-changing realm of real estate, being informed and flexible is the key. Take advantage of these trends, and your business will soar in the era of digitalization!
FAQs
1. What can virtual reality (VR) technology do to elevate the real estate sales?
Virtual reality also allows for immersive property tours, in which clients can see and experience properties remotely and save time and resources, with the same real view of the property.
2. How does artificial intelligence (AI) impact real estate?
In market analysis, predictive analytics, personalized customer service, and automation of routine processes, AI helps organizations to operate at greater efficiency.
3. Are blockchain and smart contracts reliable platforms for real estate transactions?
Blockchain and smart contracts provide higher levels of security and transparency in transactions thereby reducing fraud and speeding closing.
4. What impact does the IoT technology have on real estate?
Property owners can improve energy efficiency, safety, and provide valuable data for property management and optimization with IoT devices in properties.
5. Will real estate businesses be greatly influenced by social media and content marketing?
Social media and content marketing are indeed effective means of raising brand awareness, interacting with clients, and presenting properties to a broader target audience.
6. What are the advantages of mobile app in real estate?
Mobile apps offer convenience, targeted notifications, easy access to property listings and realtor contacts, and customer engagement improvement
