In the 21st century, technology has impacted the way we do things. From Artificial intelligence, digital open housing, and cryptocurrencies, these emerging trends of technology have transformed the way we know the real estate sector.
The new tech has taken the industry by storm, accelerating the growth and the way we do business. Every aspect of the real estate industry has been impacted by technology.
The emergence of Generation Y and millennials making up a huge percentage of homebuyers; players in the industry have been able to scale up their operations to keep up with the emerging demands.
Buyers now have the opportunity to view houses thousands of miles away with a drone, looking up for new listings is now simple like downloading an app. According to recent surveys, more than 70% of home seekers look for houses online, and 85% of agents get their work through phones either by skype or texting.
Apps have made it easy to access information regarding the property, which enables buyers an opportunity to make a wise and informed decision as they will have all the facts at hand. In this post, we are going to take a deep dive into some of the emerging technologies that have changed the real estate sector for good.
Top Technological Trends in Teal Estate
The blockchain tech is still at its infancy, but its effects have sent ripples across the real estate industry. The tech has made it possible for firms and buyers to make large transactions without the need for intermediaries like governments, banks, or credit/debit card companies.
Bitcoin led to the rise of blockchain tech, which has reorganized electronic money when making transactions globally. Its appeal to millennials results from the fact that it’s completely borderless, and it’s not controlled or monitored by any financial authority creating a vast digital wealth valued at more than $200 billion.
Despite the expert warning of ‘bubble burst’ or negative tax implications, this has not curtailed its growth as real estate firms are accepting payment in the form of the new digital currency further underlining speculations that blockchain is an emerging global leader in the real estate industry.
In real estate, blockchain is slowly emerging as a major currency, and if full potential is realized, both sellers and buyers will enjoy efficiency, transparency, and security in market transactions. Players in the industry need to adapt and diversify their business as the tech is only set to grow in the coming years.
There are two aspects whereby blockchain technology is set to have a huge impact namely: smart contract and Tokenization
Smart contracts converge all the transactions exclusively between the seller and buyer or the landlord and renter.
With these types of contracts, buyers now can transfer all their information through an encrypted and secure block directly to the landlord or seller without the need of using a bank.
The elimination of human involvement or intermediary reduces fraud occurrence as well as speeding up transactions.
It’s a widely used term in the property industry, which means splitting up of assets into tokens, which are, in turn, stored into the blockchain using cryptocurrency. The use of Tokenization creates massive changes in the property market.
- Individuals with different income capacity and locations to access a wide variety of investment options which could have been otherwise outside their reach.
- Landlords now have the chance of selling off a percentage of their property, and investors can also resell their shares in an open market using secondary exchanges.
Working remotely has been on the rise in recent years, and the sharing economy has not been left behind. According to ltc-proto.com manufacturers and investors, they can now watch the development and design of their products created by CNC machining service from the comforts of their homes or offices.
With a reduced interest in owning physical services and goods, there has been an emergence of real estate companies that facilitate shared and mobile services. Let’s highlight a few examples of this property market
- Modern firms have made it possible for the renting of fully furnished homes for an extended stay. Homeowners now have the opportunity of leasing their spaces to various businesses
- Businesses and persons can now rent furniture rather than buying it and reselling later. This is mostly done monthly.
The idea of AI can be quite intimidating, especially from what we see in movies. Artificial Intelligence has impacted real estate tech as sellers strive for efficiency and convenience like machine learning.
ML allows our computers to learn from the data and information we sift through rather than being programmed to execute commands. In the property market, ML can assist us in making smart business decisions from pattern recognition by predicting factors like when the location of the property is going to be popular with home-seekers.
AI can also be used in streamlining and improving the roles of agents, such as using chatbots to answer customer queries in real-time.
Virtual reality presents a unique opportunity for brokers and agents in speeding up the selling process by giving clients a feel and experience of the property and connecting clients with agents at later stages of the buying process.
VR allows buyers to try the property before buying without having to travel or spend money visiting these properties. But instead, they will use 3D virtual tours using 360-degree video footage and HD photos
Employing augmented reality and drone footage, buyers can now step onto the property to have a better feel and personal experience of how space feels and looks. Before that, agents used to spend a lot of time and money staging and customizing a space for clients to assess.
Technology has revolutionized the real estate industry for the better, both professionals and buyers need to adapt and diversify the way they conduct their business to enjoy the full benefits that come with the tech.