In 2020 global real estate reached a value of $326.5 trillion.
The real estate industry is huge and is constantly growing. With this growth, new technologies are needed to help brokers keep up with the market. Various technologies have come about in recent years which have helped shape the way the real estate industry works.
For a rundown of seven ways that technologies have done this, keep reading.
- Virtual Reality
Even though it’s still a relatively new technology, real estate agents are already making use of VR (virtual reality) to improve the way buyers view homes. Using a VR headset people can take 3-D virtual tours of homes they’re interested in buying.
This makes things far more convenient for the buyer, as they’ll potentially be able to jump in and take a look around a home that’s for sale without the need to book a viewing or travel to the home itself. This can be especially useful if people want to view a home but are in a different location at the time.
This provides a completely new way for people to view properties, offering them an immersive experience all from the comfort of their own homes.
- Fracionalizing Real Estate
Some real estate companies have started using blockchain technology to sell real estate. Through this method, companies like BlokHaus can split a physical property down into fractions, and people can then buy small portions of a property.
When someone owns part of a property in this way they will receive a percentage of the rental income. It allows investors from all over the world to purchase real estate in the US. This service complies with the US legal system so all assets are completely safe and secure.
For many people, investing in real estate is unrealistic as they don’t have the finances to support it. By fractionalizing real estate, people can invest for as little as $1,000, making it much more accessible to most people.
- Online Marketing Platforms
Traditionally, when someone is selling real estate they will meet up with brokers and potential buyers in person. Now with online real estate marketplaces, people can browse through online listings to make the whole process a lot easier.
A buyer can look through a range of online listings, and even filter the properties available to find ones that meet their preferences. These websites generally show pictures, videos, and even virtual tours of the homes available. This lets a buyer get a look at properties so they can make decisions all from their own home.
Some marketplaces even allow people to buy with a broker directly through the online marketplace, avoiding sizable commission fees.
- Cloud Computing
Cloud computing allows businesses to store data and files on external servers so people with permission can access them from anywhere with an internet connection.
The real estate industry uses cloud technology for a range of processes such as:
- Property management
- Letting management
- Project development
- Financing rounds
Virtual data rooms allow for mobile access over a secure network with far more convenience than physical data rooms. The use of digital workflows helps improve the speed and transparency of various processes, and this technology will likely provide more advantages in the future.
- Repetitive Task Management
Advancements in technology have resulted in much more streamlined, efficient processes. This means that a range of simple, repetitive tasks can be handled by computing systems, saving people a lot of time. Developers have created a wide range of computer programs that can automatically handle these processes.
Real estate agents can use this time more effectively, focussing on networking, researching properties, and generating new leads. Agents can take advantage of different platforms to automate several different tasks:
- Email marketing
- Drip Campaigns
- Appointment scheduling
- Portfolio management
Each of these changes on their own will make a slight difference, but when combined a huge amount of time can be saved. On top of this, using computer systems for these processes can increase accuracy by eliminating the risk of human error.
- Smart Devices for Property Management
Smart devices have improved the way many businesses operate and have even added convenience to people’s everyday lives. Integrating these into an IoT (Internet of Things) system can take this even further.
Smart locks and doorbells are such devices, which allow people to monitor and analyze visitors coming and going. A landlord can keep an eye on any potential security threats as they can see exactly who’s at the door at any time through their smartphone.
Smart thermostats allow for improved temperature control in rental units. This helps keep things comfortable for tenants while maintaining low utility bills.
Adding such devices to a house lets tenants and landlords transform properties adding new levels of comfort, functionality, and convenience.
- Price Refinement
When pricing a house brokers will rely on certain real estate trends. Neighborhood-related factors, as well as specific features within a house often determine pricing estimates.
These days brokers can get far more accurate estimates by using AI (artificial intelligence) and mathematical modeling. These methods allow brokers to evaluate a property based on a range of factors such as historical local crime statistics, nearby facilities (schools, hospitals, etc.), and nearby noise levels.
Not only does this make it easier for brokers to price properties correctly, but it helps buyers make decisions. They can look at various factors that are important to them and narrow down their choices with ease.
The Future of the Real Estate Industry
Technology is always improving, so it’s safe to say that those listed above will make a larger appearance in the real estate industry in the coming years. On top of that, there will likely be new advancements that further help the industry to function.
If you’re interested in reading more real estate articles, check out some of our other blog posts.
Also published on Medium.