Real estate technologies changed the ways prospective buyers look for suitable dwellings and the ways real estate agents outreach to them.
In this article, we have reviewed 10 tech trends affecting the real estate industry and backed up with the challenges real estate agents face.
Real Estate Market Changes and Challenges
Millennials are quite a specific target audience. And the research of their mindset and the ways of making home buying vs renting decisions is quite controversial. The major share of them still prefers to rent since they consider this option more affordable.
On the other hand, they would like to own a new house that will be customized according to their preferences but saving the necessary amount may take up to 10 years.
The research of the ways pandemic has influenced the real estate market is controversial as well. Against the backdrop of massive job loss, and the inability to pay even utility bills, buying a new home sounds like a utopia.
And nevertheless, the pandemic has caused an even greater demand for private houses, while their prices are kept at a high level, and the conditions for mortgage lending are quite tough.
The future of real estate is expected to be tech-driven. This is the point professionals should consider when deciding to build a real estate website since the patterns of users’ behavior and the specifics of their perception are changing as well.
The real estate websites, their design, and the corresponding mobile apps are now developed with an aim to deliver ultimate clarity, following the data-driven approach and the best practices for creating a top-notch user experience.
Real Estate Information Technology Trends for 2024 and Beyond
The following commercial real estate technology trends are expected to be on the rise this year.
1. The Emergence of PropTech
Property technology or PropTech is a set of tools and technologies created to help people with searching, finding, buying, and selling real estate.
The PropTech industry is expected to grow since it combines artificial intelligence and machine learning, sustainability solutions, blockchain and smart contract, chatbots, virtual and augmented reality, Property as a Service (PaaS), and IoT into a holistic and huge ecosystem.
2. ML and AI
There are a lot of ways to use artificial intelligence, machine learning, and deep learning in the real estate industry.
Content personalization, sophisticated recommendation, voice assistants, and smart home appliances are just a few of the possible use cases.
3. 3D Videos
The use of 3D in real estate isn’t an innovation. However, this approach is among the most relevant real estate technology trends in 2024.
Considering the social distancing requirements, it may be quite an option for improving the experience of potential buyers at the search stage.
The use of 3D videos allows them to see a potential dwelling in three-dimensional space, and then decide on scheduling a personal meeting with an agent.
4. Live Videos
The use of live videos in real estate is the opportunity to connect to a younger audience, Gen Z. They never knew that the world once did without Google, Facebook, and a smartphone, they never read newspaper ads, and their way of finding information is quite specific.
First and foremost, they look to social media for product recommendations. They are also fans of video content and live to stream, plus they value transparency and honesty.
With 83% of them planning to buy a home within the next five years, live videos could be the perfect way to speak to the Gen Z generation in their language using the marketing channels they can’t imagine their life without.
5. Virtual Tours and Staging
The use of augmented reality is among the most prominent trends in real estate technology. What’s more, virtual tours are more engaging compared to 3D videos.
Virtual staging can allow prospective home buyers to find out how their interior solutions will fit the premise planning and design.
6. Safer and Tech-Powered Buildings
According to the expert statement shared by Forbes, in response to pandemic-provoked health challenges, the new buildings will be created with them in mind.
That is, buildings of the new generation are expected to be equipped with UV lights, touchless entry, and automatic disinfection solutions.
There is also a suggestion to take a deeper and AI-powered look at the way building’s occupants behave and make them aware of the new rules to increase safety.
7. Property Tokenization
Property tokenization is one more trend in the real estate industry. The process of tokenization, as the name implies, means using cryptocurrency tokens to confirm and transfer real estate ownership rights.
There are a lot of benefits of using cryptocurrencies as one of the real estate technologies.
This approach provides greater transparency and security of the transaction, plus makes the property more liquid, that is, the owner can sell it more easily and faster or exchange it for a token confirming the ownership of another movable or immovable object, and a new investor can protect their investment from inflation.
8. The Use of Smart Contracts
The use of smart contracts is the logical continuation of the previous real estate technology trend. In this case, there is no need to come up with a personalized contract that may contain legal tricks or potentially put one of the parties in a less advantageous position.
The smart contract is standardized and automated. What’s more, it is irreversible, that is, each of the parties protects themselves from potential dispute of the transaction. The use of smart contracts means huge time and effort savings as well.
9. IoT-Powered and Eco-Friendly Homes
Sustainable and self-sufficient suburban houses are popular among prospective home buyers with an eco-friendly mindset. The combination of the opportunities of the Internet of Things and artificial intelligence can make private houses as environment-friendly as possible.
For example, the idea of a smart home was once inspired by the necessity to reduce utility bills and energy consumption. AI allows for achieving even greater efficiency – for instance, there are computer vision solutions aimed at food waste reduction.
They analyze the types of food wasted and suggest ways to reduce waste to almost zero.
10. Risk Management Software for Smart Investments
It is expected that real estate investors will largely adopt the usage of property management and risk management software in the process of investing in real estate.
These solutions will be largely powered by artificial intelligence, data analysis, and smart forecasting capabilities.
The real estate investment automatization solutions are also expected to become quite promising.
Conclusion
The real estate industry like most of the business spheres is becoming tech-driven.
Innovation adoption is no more a competitive advantage but a necessity for a real estate business to meet changing market demands.
Combined together, the trends we have listed create an ultimate checklist on how to improve the experience of the home buyers and make each real estate deal as beneficial for both parties as possible.
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