HOW THE EMERGING AND DISRUPTIVE TECHNOLOGY TRENDS ARE TRANSFORMING THE HORIZONS OF REAL ESTATE?

INTRODUCTION

Technology has created ripples in each and every industry and sector. The orthodox ways of doing business have changed. Likewise, the real estate sector is also evolving by leaps and bounds.?

Do you know? As per Statista, real estate is a major contributor to the world’s economy with a global value of $7196 Billion.?

Although the adoption of technology lagged in real estate because the major players in the industry were reluctant to change. Alongside that, numerous other factors slowed the adoption down but now issues are reducing. Industry players are now understanding the importance of tech and rightfully the need to invest in it.

The statistics, that 53% of digital real estate companies are now directly investing in technology, is very promising in itself. According to research, 42% of the research pool agreed that they see potential in Smart Building technologies, while 56% of respondents have noticed the impact of the tech sphere

WHAT IS PROPTECH?

The emergence of real estate tech innovation, which is often known as Proptech, has fundamentally revolutionized the housing market on a global scale.?

The term Proptech is derived from the amalgamation of two words, property, and tech. In pieces of Forbes, Plunk describes Proptech as follows;

“The underlying technology that real estate professionals, underwriters, developers, property managers, title companies, banks, and others use to manage and improve real estate transactions from start to finish.”

It curtails numerous solutions that are directly involved in the growth of commercial real estate software. The automation of tedious and repetitive tasks is one of them. It is also known as CREtech for commercial real estate or REtech for real estate technology.

Venture Capitalists' (#VC) investment in residential real estate tech has reached an annual record of $6.2 billion as per PitchBook data. While $2.6 billion in funding by VC in the commercial segment is rewinding the game. And this shows that there will be no slowing down as a new generation of consumers and realtors are opting for this technology.

8 REAL ESTATE DISRUPTIVE TECHNOLOGY TRENDS FOR 2023

The success and scalability of any technology are directly dependent on the satisfaction of the clients. So, the prime focus is to diligently work on that part of the technology. Certain features including photos, detailed information, real estate agent contracts, virtual tours, and many more are of prime importance for users.

The technology that will focus on user pain points and facilitate them in decision-making will flourish. So, these are some of the industry's disruptive technological trends that one needs to follow in 2023;

1. AUTOMATED RENTAL AND PROPERTY PURCHASING PLATFORM

The real estate industry is being revolutionized by a groundbreaking innovation. Today, clients are relying more on the internet than face-to-face meetings with real estate agents to discover new properties they want to buy.

According to the 2021 NAR Home Buyer and Seller Generational Trends report, 43% of all buyers search online for properties for sale.

The advantages of using automated property technologies are numerous. Consumers and real estate professionals who fail to take advantage of these valuable real estate technology tools to locate or sell a home will be at a significant disadvantage.

2. 3D VIRTUAL HOUSE AND APARTMENT TOURS

Real estate technology is evolving rapidly, and one of the latest trends for 2023 is virtual property tours. These solutions are closely associated with search applications, and they allow prospective buyers to take a virtual tour of properties while making their selections. By doing so, buyers can save time and money by eliminating the need to visit multiple properties physically, many of which may not be a good fit for their needs.

While most buyers will still want to tour the property in person before making a final decision, virtual tours can help them narrow down their options quickly. This is a win-win for both the customer and the real estate agent, as it streamlines the decision-making process and frees up time for other important tasks.

Thanks to today's advanced VR technologies, virtual tours can provide an almost realistic experience of a property, allowing buyers to examine the property's state, interior details, and furniture from the comfort of their own homes. Additionally, real estate photo editing services can enhance property images to make them as true to life as possible, further improving the virtual tour experience. Overall, it will not be wrong to say that virtual property tours are a game-changer in the real estate industry, and they're a trend that's likely to continue growing in popularity in the years to come.

3. BLOCKCHAIN

While most people associate blockchain technology with cryptocurrency, it has many other potential applications, including in the real estate industry. In fact, blockchain can be used to verify encrypted transactions, ensuring that financial records remain secure and free from tampering.

One of the most exciting potential uses for blockchain technology in real estate is fractional property investment. This technology could enable landlords to sell portions of their stake in a given property, making it easier for smaller investors to participate in the market.

Moreover, blockchain can also be used to store important documents such as property titles securely. This could reduce the risk of fraud and improve the efficiency of transactions.

While the potential of blockchain technology in real estate is just beginning to be explored, it's clear that it will be one of the top real estate tech trends in 2023 and beyond. As more applications for this technology are developed, it has the potential to revolutionize the way we buy and sell real estate.

4. BIG DATA

Storing vast amounts of consumer preference data requires robust databases and data warehouses. However, this data can be leveraged to help clients make informed investment decisions in the real estate industry.

McKinsey's research suggests that machine-learning models can predict rent rate changes with 90% accuracy when applied to real estate applications. Furthermore, these models can predict changes in other property metrics with 60% accuracy. This level of accuracy can provide valuable insights for clients seeking to make wise investments in commercial or non-commercial properties.

By analyzing the vast amounts of data gathered through databases and data warehouses, machine learning models can help clients identify the properties that are most likely to yield favorable returns on their investments. This is particularly valuable in the fast-paced and ever-changing world of real estate, where accurate predictions can make all the difference.

In short, utilizing machine learning models to analyze data from databases and data warehouses can provide clients with valuable insights into the real estate market. These insights can help clients make informed investment decisions, ultimately leading to better returns on their investments.

5. INTERNET OF THINGS (IoT)

Smart homes and devices are rapidly changing the way we live our lives, and they're quickly becoming one of the top property management technology trends. These devices are powered by the Internet of Things (IoT), which involves embedding sensors and computing technology into everyday items to make our lives more convenient and enjoyable.

Smart apartments have three main characteristics that distinguish them from traditional homes. The first is smart amenities, which include devices like smart lights and locks, as well as integrated services like home cleaning and package delivery.

Connectivity is another critical feature of smart apartments. These homes are designed to enable devices, building systems, residents, and management to communicate seamlessly. With features like WiFi, smart sensors, and intelligent access controls, enhanced connectivity is one of the key benefits of a smart apartment.

Finally, community management is a critical component of smart apartments. Property managers and renters can benefit from features like built-in event calendars, resident assistance, and on-demand services that help build a more vibrant community.

As one of the most sought-after trends in proptech for apartment websites and real estate platforms, smart apartments are quickly gaining popularity. While new construction is an ideal place to implement these homes, older structures can also be retrofitted to provide the same level of connectivity and convenience.

Overall, smart homes and apartments are transforming the way we live, and we can expect to see even more innovative solutions that make our lives easier and more enjoyable in the years to come.

6. MOBILE APPS

Mobile technology has become a game-changer for the real estate industry, with many companies developing real estate apps to help streamline the buying, selling, and renting process. Rental and purchasing platforms are among the most popular apps, offering numerous advantages over traditional methods of locating properties.

One of the key benefits of using real estate apps is that they provide up-to-date information on available properties. Databases are frequently updated, giving consumers access to more timely and accurate information on new properties on the market and those that are no longer available.

Whether you're interested in purchasing, selling, or renting a property, there are apps tailored to your specific needs. These apps can help you find the house or apartment you're looking for and connect you with a real estate agent to facilitate the deal.

With the convenience and accessibility offered by real estate apps, it's no wonder they're among the most efficient technologies used in the industry today. As the demand for these apps continues to grow, we can expect to see even more innovative solutions that will make the real estate experience faster, easier, and more enjoyable for everyone involved.

7. DIRECT DIGITAL ENGAGEMENT

The real estate industry is adapting to the new normal of touchless services, prioritizing the safety and health of clients. To provide a seamless experience, disruptive technology is now being utilized to automate traditional processes such as home tours, reducing the need for in-person interactions. High-quality digital materials, including photos, brochures, and virtual tours, are necessary for buyers to scrutinize each detail and make informed decisions.

Moreover, the ability to view properties still under construction has become a crucial feature in real estate applications. Developers can showcase the progress of the future building through regular photo updates, instilling trust in potential buyers and increasing direct engagement. This shift towards touchless and digital interactions is one of the most popular trends in real estate, and it is expected to continue in the coming years.

8. DIGITAL TRANSACTION MANAGEMENT

Digital document management is a crucial property technology trend that should not be overlooked. Buyers and agents today value their time, and a solution that can eliminate paperwork and enable the electronic signing of documents can be a game-changer. This way, the parties involved in a transaction can be in different locations and still have access to contracts from any device. By streamlining the process of handling documents, this technology can significantly reduce transaction time and costs while providing greater convenience to all parties involved. So, if you're in the real estate business, it's worth considering implementing a digital document management solution.

THE FUTURE OF REAL ESTATE TECHNOLOGY

Proptech is a bidding industry that will grow exponentially in the upcoming years as the world population is predicted to double by 2050, and so do the demand for real estate will be.

Consumers are becoming more comfortable with technology and the possibility will continue to expand. Every individual in one way or another other is interacting with real estate so, this technology will impact that.?

LOOKING FOR A REAL ESTATE SOLUTION?

If I say we are living in the world of technology, then it will not be wrong as it has changed the world completely. It has created a lasting and deep impact in many industries. Undoubtedly, real estate is one of the most prominent industries in which it has created ripples. It is expected that in the few years, the popularity of emerging technologies in the real estate market will talk to the sky.?

If you are planning to inculcate real estate innovations into your business, don’t kill your time by just imagining or daydreaming. In 2023, Proptech is already providing there to facilitate you but to remain ahead of the game you need an innovative solution that can give you a competitive advantage over your competitors.?

We Strategist Hub clearly understand our client's needs and wants and will be glad to help you in developing any real estate solution that meets your business goals and needs.

So, what are you waiting for? Let’s catch up to discuss the details of your project, lock the scope and then kick-start your project.