In the real estate sector, gone are the days when we had to go to the realtor’s office or project sites and contact brokers to buy or sell the property. Yes, traditional property dealing is nowhere seen or heard all thanks to advancing technology that has taken over our world consists of land, homes, office spaces, and all sorts of properties.
Property technology or PropTech has revamped the way we deal with the property for different purposes. These days, PropTech has grown to be further classified into Commercial Real Estate technology (CREtech) and Real Estate technology (REtech). Looking at the facts and figures, CBRE has examined the US real estate industry closely to give the following points-
- Investment size in the real estate sector will remain anywhere between $478 billion to $502 billion in 2020
- Though globally a lot of uncertainty prevails due to coronavirus outbreak, the US commercial real estate remains the top choice for investment in the year 2020
One of the major reasons why the pandemic age does not affect the growth of the real estate sector much is the technology has favored the sector a lot in recent times.
Let’s go through the key technology trends that influence the real estate domain and will drive innovation in the sector in the years to come.
Top Six Technology Trends that Drive Growth for Real Estate Sector
Big Data and Data Analytics
In this data-driven world, we have to rely on insightful information for making real-time decisions. Every industry sector has started leveraging the benefits of Big Data and data analytics, and the real estate sector is no exception! Realtors and customers can get insights on buying patterns, property trends, pricing, demographics, and potential value lies in the specific locations using big data and analytics.
Thanks to big data and data analysis, we can get an accurate estimate for the property by analyzing the regional price analysis and predicting future fluctuations. Big data technology also lends a helping hand in mitigating risks associated with frequent price changes. Talking about the customer’s benefits, real estate apps can help them to choose the right property through data analysis. The top US-based real estate apps Zillow and Trulia follow the big data-based model to provide insights on property trends.
Internet of Things (IoT)
IoT technology is getting mainstreamed across various industry sectors. It becomes a game-changer in the real estate sector. The concepts of smart homes, smart cities, and smart properties are based on connected devices and incorporate the physical and virtual world seamlessly. IoT Analytics has predicted that the global IoT sector is all set to exceed $1.5 trillion by the year 2025.
Proptech is poised to use IoT technology to create more comfort for consumers while showing them every aspect of the property. Home devices will contain smart sensors for ensuring security and offering predictive maintenance alerts. Property managers, owners, or realtors can get real-time alerts about potential problems with the help of the integration of the IoT concept. What’s more, IoT also contributes to saving energy and saves money for property owners.
AI (Artificial Intelligence) and Machine Learning
How do you prefer to find and view properties in the corona age and beyond? How about providing your potential customer to provide an enhanced experience by integrating AI and ML-based features in the real estate search app? These futuristic technologies can make the entire process of searching, buying, and selling faster than before.
Real estate mobile apps can more accurately predict the rent rate fluctuations with the help of machine learning. A McKinsey research report has revealed that the rent rate prediction is 90% accurate in the real estate apps based on machine learning models. What’s more, AI and ML together provide a personalized customer experience. Based on the searching pattern, the real estate app can show the users relevant properties with the help of AI and ML-based features. It increases the customer’s engagement and enhances the value of the app.
Chatbots are also based on these technologies and they can give answers to the questions of prospective customers with ease on a 24/7 basis.
5G-enabled smartphones are already available in the market and giant telecommunication service providers are getting ready to introduce this revolutionary technology across the world. Immense data speed and seamless connectivity offered by 5G technology will evolve the real estate industry along with other sectors. Also, 5G technology will help the real estate sector to make the most of the thriving IoT technology.
Augmented Reality (AR) and Virtual Reality (VR)
Do you want to give an immersive experience to your prospective customers or app users when they initiate the 360-degree tour of your property? There, AR and VR technologies come into the picture and bridge the gap between the digital and physical worlds. AR and VR technologies make properties highly accessible as your potential customers can access them using their fingertips.
Augmented reality enables you to superimpose images to create a realistic image that helps customers understand the property even if it is under construction. AR and VR technologies can save a lot of time and effort for people as they eliminate the need to visit the property physically. With a clearer and more precise product representation, these technologies can enhance the customer experience.
Those who believe that blockchain technology is limited to cryptocurrencies and the BFSI sector as a whole should think again! It is expected that the share of blockchain technology will grow from $3.0 billion to $39.7 billion by 2025 globally. Of course, the real estate sector will also play a role in achieving this target.
Buying, selling, or renting any property needs a lot of money and involves a plethora of confidential information. Also, high-value transactions can be securely made using blockchain technology in the real estate app. Blockchain has also introduced tokenization and cryptocurrency-based payments in the real estate sector along with offering encrypted online transactions.
All these trends will shape the future of real estate over the period. The importance of technological advancements is increasing daily in the growing real estate sector. The real estate mobile app development reflects these trends in the form of user-friendly and future-ready apps or up-gradation of existing real estate apps. Startups or realtors can consider developing customized and feature-rich apps to grow their business and stay ahead of the curve.