Emerging New Age Digital Businesses in the Construction and Real Estate Industry

The construction and real estate industries, which have been thought of as slow to adopt new technology, are experiencing a major shift. With the start of 2023, many digital companies and technologies are emerging, changing the way these industries operate.

Digital Capabilities and Technologies

McKinsey & Company has been at the forefront, advising infrastructure and real-estate clients on the integration of new technologies and digital capabilities. The emphasis is on selecting, planning, deploying, and scaling up these innovations to ensure they bring about transformative changes in the sector.

Sustainability and ESG Concerns

The integration of Environmental, Social, and Corporate Governance (ESG) concerns into business models is becoming paramount. The real estate sector, which encompasses construction, finance, and operations, is progressively focusing on sustainable and responsible business practices.

Generative AI and PropTech

Generative AI, as highlighted by McKinsey, is showing potential for a transformative business impact. This technology can be applied in various ways within the construction and real estate sectors, from design to operations. Furthermore, PropTech, or Property Technology, is revolutionizing the industry by using modern technologies to change traditional business practices. This includes virtual tours, AI-driven property management solutions, blockchain applications, and more. Source

The Digital Transformation

The digital shift is evident from automated rental platforms to 3D virtual house tours. Conversational AI, Big Data, Blockchain, and IoT are just a few of the technologies making waves. These innovations are enhancing the customer experience and streamlining operations, making the industry more efficient and responsive.

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Real Estate Technology Trends 2023:

Here's a more detailed breakdown of the emerging technologies and trends in the real estate industry for 2023:

1. Automated Rental and Purchasing Property Platforms: The way clients find new properties is shifting towards online platforms. The 2021 NAR Home Buyer and Seller Generational Trends report indicates that 43% of all buyers look online for properties for sale. Automated property technologies are becoming essential, offering significant advantages over traditional methods.
2. 3D Virtual House and Apartment Tours: Virtual tours are becoming a primary tech trend in real estate for 2023. These tours save time and money for both buyers and agents by eliminating the need for physical visits to multiple properties. Advanced VR technologies are now offering almost lifelike virtual tours.
3. Conversational AI: Automated service desks with conversational AI are becoming more prevalent. These AI-driven systems go beyond traditional chatbots and offer 24/7 support, ensuring faster response times and reduced error rates.
4. Big Data: Real estate applications are leveraging machine-learning models to predict rent rate changes with high accuracy. This data-driven approach aids clients in making informed decisions about their investments.
5. Blockchain: Beyond its association with cryptocurrency, blockchain technology is finding applications in the real estate sector. It can verify encrypted transactions, facilitate fractional property investment, and securely store important documents like property titles.
6. Fractional Property Investment: Enabled by blockchain technology, fractional ownership allows multiple investors to share ownership in an asset, making properties more accessible to a broader range of buyers.
7. Mobile Apps: Mobile platforms for rental and purchasing are becoming increasingly popular. These apps offer real-time updates on properties, facilitating quicker decision-making for buyers and sellers.
8. Internet of Things (IoT): IoT is transforming homes into smart homes. Features like smart lights, locks, sensors, and integrated services are becoming standard, enhancing the living experience for residents.
9. Analytics and Data Management: Data-driven decision-making is becoming crucial in real estate. Innovative solutions are being developed to analyze vast data, providing valuable insights for market participants.
10. Digital Twins: This technology involves creating a 3D digital model of buildings, allowing prospective buyers to explore properties in detail. Digital twins can also be used during construction to assess the safety and viability of projects.
11. Direct Digital Engagement: The shift towards touchless services is evident. Traditional procedures, like in-person home tours, are being replaced by digital interactions, emphasizing the importance of high-quality photos, brochures, and virtual tours.
12. Digital Transaction Management: This trend focuses on eliminating paperwork and enabling electronic document signing, making transactions more efficient and accessible.
13. Hyper-personalized Messages: With the help of datasets and predictive analytics, agents can now send highly targeted messages to specific audiences, enhancing engagement and conversion rates.
14. Lead Generation and Engagement Automation: AI-powered chatbots are being used to initiate conversations and respond to inquiries, helping agents capture and qualify online leads more effectively.

Final Thoughts

As 2023 unfolds, the construction and real estate industries are poised for a digital revolution. The integration of cutting-edge technologies and the emphasis on sustainability and ESG concerns are setting new standards. Stakeholders, from developers to buyers, need to stay abreast of these changes to harness the opportunities they present and navigate the challenges that lie ahead.

Also, here are a few recommended courses for you to start your digital construction career journey;

• AI Foundations for Everyone by Johns Hopkins University is an excellent starting point to understand the basics of AI.
• The Machine Learning Specialization by Duke University, Princeton University & Stanford University focuses on the application of machine learning, a significant component of AI.
• Mind and Machine by Duke University & Stanford University explores the intersection of AI and cognitive science.
• IBM Data Engineering by Johns Hopkins University is designed for those interested in the data handling aspects of AI.
• Artificial Intelligence Nanodegree offers a comprehensive curriculum covering various aspects of AI.
• ?Supply Chain Analytics by Duke University & University of Pennsylvania is useful for those interested in applying AI to supply chain management.
• AI, Business & the Future of Work by Lund University offers insights into the role of AI in shaping the future of businesses