Every time I seek new technology solutions to enhance real estate businesses, I am even happier to see how these two have allied, creating the Proptech. And that’s what I will talk about today, overviewing 5 technologies that have changed the real estate industry for the better.
The Development of the Proptech
It completely changes how people interact with their properties, from house constructions to home buying, renting, and selling.
Proptech itself intersects with commerce real estate technology and real estate technology (or CREtech and REtech). These suggest software implementation into real estate technology.
Although pandemic has reduced the development of the real estate market, which was significantly stronger before, it is growing. According to estimations by CBRE, investment in the real estate market for the previous 2020 year should have increased up to $500 billion.
Technologies only complete the growth. As the latest surveys point, customers use digital for everything, starting from searching homes online to consulting on the home buying processes. And that’s only the beginning.
Top 5 Technologies that Changed the Real Estate World
Now let’s take a closer look at how emerging technologies accelerate the property market growth.
This technology joining Proptech is not yesterday’s case. Internet of Things (IoT) systematically and increasingly advances real estate since 2015 or even earlier.
From the technological perspective, IoT entails the connection of computing devices through the internet so that data sending and receiving are possible via embedding them in everyday objects.
How does the real estate sector benefit from it?
- For customers, IoT helps them control all the house environment, such as unlocking the house without a key or turning off the light without a switcher.
- For real estate businesses, IoT is a great assistant throughout the whole home selling-buying process to show the apartment without unnecessary communication through remote control or tracking the prospective buyers’ interest.
IoT Applications in Real Estate
So, where can the technology be implemented?
- Predictive maintenance – with integrated sensors, letting the property managers know about possible issues to be solved and their approximate cost.
- Energy efficiency – by tracking and reducing electricity usage where possible to keep sustainability and cut costs.
- Informed decision-making – collecting data about the property itself and certain infrastructure elements around it.
AR/VR Opportunities for Real Estate
These are other great technologies to support the real estate industry for several years already.
Augmented Reality and Virtual Reality (AR and VR, respectively) are enabled with advanced 3D image capturing and recreating them completely on virtual platforms (VR) or imposing the 3D images on the surfaces in the real world (AR).
- For customers, it saves time and cost, eliminating the need for their physical presence.
- For real estate businesses, it allows improving a customer experience with advanced property presentation and personalized approach, therefore, increasing ROI.
AR/VR Industry Applications
Where’s the technology applied?
- Unbuilt or soon-to-be-released property – by providing a full-scale exterior visible model on the land chosen by customers or developers.
- Property staging – by presenting how the property would look like, superposing the digital images of furniture and necessary equipment.
- Property showcase – by providing virtual tools to the property via the headset of 360-degree video.
Big Data and Advanced Data Analytics for Property Businesses
Hardly any industry or business now can handle without data-driven facts that boost informed decision-making. Real estate is no exception.
Within the technology, the industry uses real-time and historical data to gain insights on trends, patterns, pricing, and many more.
- For customers, data analytics provides meaningful information on pricing, potential property value in particular spots, and other impactful data.
- For real estate agencies and businesses, Big Data and data analytics simplifies all industry workflows, mitigates nearly all property-related risks, and advances pricing and marketing.
Big Data and Data Analytics Applications for the Property Industry
Where can the technology be applied?
- Risk mitigation – with predictive analytics providing access to critically essential information about yet unknown property features.
- Property insurance services – with Big Data to help property insurance companies analyze their optimum products and services for particular geographical spots and customers’ needs.
- Market strategy shaping – with a vast amount of data to realtors for a faster and clearer definition of customers’ trends, patterns, and preferences.
AI and ML-Enhanced Approaches for the Industry
These technologies have already proved to be one of the main supportive and moving forces for real estate, such as streamline repetitive tasks and evaluate risks.
The industry leverages Artificial Intelligence (AI) and Machine Learning (ML) to turn raw data into actionable insights and enhance customer experience, accelerating the entire searching-viewing-buying-selling process.
How do the industry participants benefit from AI and ML?
- For customers, it provides a wholly personalized experience, recommending properties and introducing tailored search results based on their preferences like location, price, and personal likings.
- For real estate businesses, it can predict property rate fluctuations with better accuracy and suggest better property choices for investment.
AI and ML Usage for Real Estate
How can these technologies enable the property industry?
- Property search – with AI algorithms providing visitors alternative listings being a perfect match for those they searched according to their criteria and placing them at the top of search results.
- Lead generation – with deep learning and Natural Language Processing (NLP) methods for lead generators to qualify their leads accordingly to track them as potential buyers in the future.
- Lending – with AI and ML to read down all the documents about the potential borrowers and make the preliminary decisions on them, accelerating the pre-underwriting process.
The Blockchain in Real Estate
It may seem surprising, but the blockchain has a promising future within the property industry, incredibly personal and financial information.
As super-secure technology, the blockchain allows locking up the information on transactions and other critical data in the block, allowing verified operations to eliminate any risk of counterfeiting or unauthorized intervention.
How do both parts of the property-related processes benefit?
- For customers, it makes the whole process more transparent, reduces cost by eliminating intermediaries.
- For real estate businesses, it cuts time-consuming paperwork, eliminates fraud risks, and significantly fastens the transaction speed.
Blockchain Real Estate Applications
Now let’s look at how the blockchain can boost real estate?
- Financial evaluation – with blockchain-powered platforms keeping all data secretly without alteration, allowing the whole evaluation process automation and agreement acceleration.
- Property management – by using a smart contract to simplify all the interaction between parties involved – from signing an agreement to submitting and handling maintenance requests.
- Real-time accounting – with blockchain-enabled platforms by automating and significantly fastening the accounting process for better compliance and brighter investment opportunities.
To wrap up on the bright side, let’s just hope that this cooperation of industry and technologies won’t fade away with time but will only get stronger, producing excellent results.