After the COVID-19 pandemic swept across the world, the real estate market experienced a series of changes that are reshaping the future of property for good. It’s still too early to know which of those changes are temporary and which ones will be structural. One thing is for sure, though: the acceleration in the adoption of real estate innovations will drastically change the way the industry conducts itself.
That doesn’t mean that the real estate sector was stagnant in its tech adoption. Truth be told, the industry had been innovating for years, giving way to the rise of property technology (proptech). What’s changed is the pace of the adoption in line with most industries around the world. Today, real estate agencies are going through a digital acceleration process that’s highly dynamic and will bring numerous changes to how we rent or buy properties.
That’s only natural. Ninety-five percent of people looking for properties are already using technology to hunt for alternatives. And now we have to add more recent restrictions that push agencies to look for new ways to showcase the properties they are offering. Here are some of the technologies that real estate agencies are quickly adopting in an ever-changing world and meet the new consumer demands which will surely reshape the sector for the upcoming years.
#1 Artificial Intelligence For Better Services
AI is revolutionizing practically all business activities, and real estate is no exception. Proof of that is the widespread adoption of chatbots across real estate agencies to help with customer service. Through these intelligent assistants, real estate agents can automatically answer questions, filter prospects, and provide a better experience overall.
But that’s far from being the only use of AI in real estate. This tech is also a great addition to real estate management platforms as it allows for customers to receive better suggestions on properties they might be interested in, all based on data analyzed through AI-based algorithms.
Real estate agents also benefit from AI when it’s embedded in their systems. Managing multiple properties is easier with it, generating leads can be scaled exponentially, and even predicting future market scenarios is now possible with a more reliable level of accuracy. Thus, AI provides better services for consumers and agents alike, a huge reason why so many agencies are already using it pushing AI to a standard proptech.
#2 Blockchain for Smart Contracts
Blockchain has become an important tool in the real estate sector and beyond. The decentralized, immutable ledger creates transparency in transactions in the industry, as well as offers efficiency and increased security.
Smart contracts, which leverage blockchain technology, can facilitate quick and seamless transactions, automating the process of buying, selling, transferring, and marketing properties. This reduces the amount of time involved and makes the process more cost-effective at the same time.
#3 Virtual Reality For Showcases
While pretty much all potential buyers will search for online photos and information about a property they are interested in, it’s obvious that they’ll want to visit it as soon as possible to have a better idea of the property itself. Sure, nothing can replace an in-person property visit but, with virtual reality, real estate agents are as close as they’ll ever be to an alternative.
Through the use of VR boxes, real estate agents can provide a more faithful representation of a property than they could ever provide with images and descriptions. Virtual reality brings both spatiality and an exploration component that allows renters and buyers to have a better idea of a property’s layout and details. Thus, anyone interested in a home can check homes from the comfort of their own sofas and shortlist the ones that they liked best.
What’s more, a virtual tour of a property can embed details about the construction as well as layers with additional information (such as the electrical installation or the plumbing). By doing so, real estate agents can limit the number of visits they have to arrange (and reserve them for truly interested people). As for consumers, checking homes anywhere and anytime is an unbeatable experience that can help them make up their minds about a property in the most comfortable way.
#4 Augmented Reality For Unconstructed Properties
While a virtual reality tour is a fantastic way to showcase already-built homes, augmented reality is the best option for unconstructed properties. With it, real estate agents can clearly represent the finished property without having to resort to sketches or miniature models. Just by using AR, agencies can better showcase how all rooms will look once the construction is done.
The best thing about AR is that real estate agents can take people through a visit and invite them to use this tech to customize the rooms under construction to see how they’d look with the potential buyer’s style and interiors already applied. In other words, people can use an AR device to point to a room and modify its look at will, painting walls, placing digital furniture, and playing with light fixtures.
Thus, AR can bring sketches and architectural plans to life by using digital components that allow buyers to easily visualize the final product. This is a very engaging way to sell properties under construction, one that provides real estate agents with a perfect aid when closing a deal.
#5 5G for Remote Property Management
5G, or 5th-generation wireless technology, offers low latency, nearly impossibly faster internet speed, and reliable connections. It’s a huge upgrade from the previous wireless iteration, 4G, offering data transfer rates of unprecedented speed.
And 5G is proving to be a huge asset to real estate. The wireless technology enables the remote management of properties. Using sensors, property managers can monitor the building, appliance performance, and other aspects of the facility. This will allow them to handle any building needs before they cause problems and keep residents happy.
The Tech-Driven Future of the Real Estate Sector
Real estate is undergoing a major renovation that will forever change how we all buy or rent properties. The pandemic has accelerated the adoption of the key technologies we’ve mentioned above and will drive them to the mainstream in the short term. In other words, we’ll see more and more of AI, blockchain, VR, AR, and 5G in real estate agencies real soon.
That’s not all. The real estate field will keep pushing for more innovations with the help of other cutting-edge technologies such as the Internet of Things, and Big Data, which offers invaluable insights and information to real estate professionals. The benefits of applying all of those technologies will lead to a more immersive, engaging, and secure experience for consumers and will provide agents with more sophisticated tools to carry out their businesses.
The entire world has increased the pace at which it is adopting new technologies to respond to the new challenges brought about by the pandemic. The real estate industry isn’t far behind and is doing its part, a smart move to meet the highly dynamic demands of the real estate market that’s coming in the post-pandemic landscape.
