Top 5 Trends in Real Estate Technology
As one of the world’s oldest surviving industries, the real estate industry has seen many trends come and go without lasting impact. But the one significant change that’s here to stay is the introduction of technology, and the development of real estate technology has changed the game in a major way.
Also known as property technology, or proptech for short, technologies in the real estate space have come a long way in transforming the processes of buying, selling and renting property. But what exactly does it mean?
What is proptech?
Simply put, it is the use of technology across the different functions of the property market to help property investors, landlords, and tenants manage property as efficiently as possible.
According to Forbes and the Center for Real Estate Technology & Innovation , over $32 billion was invested in proptech companies in 2021 alone, with that number continuing to rise rapidly. As the digital landscape evolves, so do consumer trends— and the demand for innovation continues to grow.
Here are 5 of the top trends within the proptech space that are driving change right now, with exciting possibilities for the industry's future.
Artificial intelligence and machine learning
Collecting raw data and turning it into actionable information has never been easier with the use of AI technology, and artificial intelligence in real estate is proving to be invaluable in streamlining processes and boosting productivity.
Some of the current AI-powered processes used in real estate include:
● Machine learning can help forecast trends and provide more accurate insight into housing values and rental rates based on historical data and various local statistics
● Chatbots that can communicate with potential owners or tenants online to provide real-time solutions to common questions, direct them to relevant information sources on the company website and collect necessary information like contact details
● Property management software that incorporates AI technology has helped to cut down on repetitive manual tasks like scheduling and paperwork as well, helping to digitize the process of property management and focus on more important areas.
With the scope of AI and machine learning expanding rapidly, more functions within the real estate industry will gradually be further developed and optimised to keep up with the growing demands of consumers.
Virtual and augmented reality
The impact of the COVID-19 pandemic has had many dire consequences for the real estate industry, with one such example being the strict restrictions around inspections and property viewings. And quite frankly, a few grainy photos in an online listing just doesn’t cut it anymore.
According to the 2021 report by the National Association of Realtors on Home Buyer and Seller Generational Trends , 43% of all buyers look online for properties for sale as the first step in their search, while 58% found virtual tours useful. Using virtual reality to showcase a property and augmented reality to virtually furnish it has enjoyed a spike in popularity post-COVID, and will likely continue to see a demand due to the convenience factor.
As far as real estate technology trends go, this one is fairly low risk with a great ROI. Real estate agents and potential buyers alike can now save time, without the need to conduct in-person viewings, with the added benefits of reducing travel costs and providing a better representation of the property. or else you can make your own video which is related into real estate "If you’re new to video editing" you can explore some tools for better quality of the presentation in real estate.
Data analytics and ‘Big data’
Collecting and storing vast amounts of data on consumer preferences has been the norm for most industries for a while, and the real estate market is finally catching up in this respect.
Using big data analytics can help real estate companies make data-driven decisions that tap into what consumers really want, and use the buying and selling trends to their advantage.
From collecting information to make accurate recommendations of pricing and values, to simply staying on top of home maintenance by tracking building systems and equipment usage big data is a cornerstone of today’s real estate technology solutions.
Mobile apps
The world is more connected than ever through the meteoric rise in popularity of smartphones, with everything you need at your fingertips. With more than 3.48 million apps on Google Play and 2.22 million on Apple’s App Store , companies are developing mobile application versions of their product, or are moving to purely app-based software development altogether.
Real estate software is no exception, with many apps on the market covering different functions. Potential buyers can browse dedicated platforms for property investments and listings, live chat with real estate agents in-app, and much more. Tenants are able to find rental properties and connect with landlords faster and easier as well.
A fast-growing trend in property technology is offering app-based property management systems, where companies can provide support to both landlords and tenants with just a few taps on their smartphones.
This new era of property management systems (PMS) gives property managers the ability to communicate with both landlords and tenants in a more streamlined way while giving them greater control over their property. Everything from accessing finance information and trust accounting, maintenance requests, inspection and leasing information and much more can be offered through an app, benefiting everyone in the long run. Blockchain Some of the key priorities for real estate technology include data security and process optimising, making blockchain interventions the perfect solution and Blockchain Development Company.
A blockchain is a distributed database or ledger that stores transactions, contracts and sensitive data in a highly secure digital format that doesn’t require verified third parties like banks or brokers. Not only does this cut down on the lengthy physical paperwork, but it also provides greater security for important documents like property titles and smart contracts.
Though it’s still in the very early stages of development, The use of blockchain in the real estate industry has the potential to make property investment accessible to younger generations, such as by tokenizing assets to allow for overseas investments. For real estate agents and companies looking to expand their operations and move with the times, blockchain could be a great option.