The Top PropTech Trends Transforming the Real Estate Industry
Technology advancement is an ongoing process. It has become an integral part of all kinds of industries. Technology plays a critical role in bringing transformation in any industry. Real-estate is no exception. Websites and apps have become our new real estate agent. 360degrees virtual site visits have enabled buyers to have a look at the property without even visiting. The list is quite long.
Technology has brought numerous changes at every stage of the real estate industry. Prop Tech is the name used for the Corporate Real Estate Technology sector. The increasing popularity of Prop Tech trends is proof that not only is the industry going through a drastic change, but also the sellers, as well as the buyers, are accepting these changes. If you are into the real estate business, then having a clear understanding of the topmost Prop Tech trends is very crucial.
Some of the most popular Prop Tech trends are:
- Business intelligence and an increase in data volumes
Business intelligence is the secret behind the successful working of any real estate mobile app. Data and app development are inseparable. As we all know, data tends to grow continuously and exponentially.
One of the most popular and fastest-growing trends in real estate is deriving Business Intelligence (BI) using big data. The data available, along with business intelligence, results in a more productive outcome as far as the interaction between buyers and sellers, is concerned. Tools provided by BI help in decision making. Today’s real estate markets are more data-driven. It is all about collecting data and analyzing and reviewing data. This data analysis helps the seller to understand the needs and requirements of the potential customer and also help them find the best way to approach them.
Blockchain technology is another Prop-tech trend that is becoming very popular in the property market. The best example is the use of cryptocurrencies for buying property. In the past few years, numerous blockchain real estate businesses have emerged in the market.
Advantages of using blockchain technology in real estate industry.
- Blockchain reduces the risk of fraud. The smart contracts, once encrypted, cannot be altered. Hence, these documents are much safer as they cannot be forged.
- Blockchain cuts down the paperwork. Digitalization has made documentation and buying process much comfortable and simpler. Verification and time stamping of smart contracts is done via blockchain technology.
- It helps in reducing the number of intermediaries. Numerous mediators are involved in a sale and purchase deal. This includes broker, banker, notaries, etc. A buyer needs to pay some fees to each of these mediators. With blockchain technology, a buyer can avoid one or more mediators. This way, buyers can save a lot in terms of money, time, and effort.
- Availability of an up to date information. In the real estate industry, the more information you have better it is for the deal. Blockchain technology not only provides an up to date information about properties to the interested parties but also keep it safe and secure.
- Virtual and augmented reality VR/AR
Another technological advancement that has brought a significant change in the real estate industry is Virtual reality. VR/AR helps in managing physical spaces more efficiently. More and more buyers, as well as realtors, are using this technology. This prop/tech trend enables interested buyers to have a close look at the property as well as near-by areas without even visiting the site. Many real estate companies are using this technology to give their buyers a high-quality experience.
Benefits of using VR/AR technology
- It enables the buyer to have a virtual tour of the property.
- An effective and efficient way of marketing the property.
- Properties can be accessed through websites and mobile applications.
- Buyers can view and investigate the property in detail as per their own time and comfort.
- Buyers and sellers can save lots of their time, effort, and money, which they otherwise have to spend on-site visits.
- Real estate cybersecurity threat landscape increases
Another trend that is attracting the interest of the real estate industry is cybersecurity. Increasing digitalization in real estate is a reason that more and more businesses, as well as buyers, are getting worried about their safety and security. With the increasing risk of cyberattacks, real estate companies are getting more concerned about the loss of business, the ruining of the brand, inconvenience to their customers, and safety.
- Co-living and co-working
The principle of co-living and co-working is another trend that is quite popular nowadays in the real estate industry. The basic principle that many property owners have started following is ‘property not in use is of no value’. People have begun renting their properties, with a motive to earn some extra money.
Prop Tech has made managing properties much simpler. Property owners can easily manage their rented properties on their mobile phones. One simple app can take care of all landlord jobs.
In addition to this, many real estates have incorporated the idea of Co-living+ co-working. This means that the same space can be used as a living place as well as a working place.
- Technologies allowing in-depth comparisons and analysis with Real Estate Data
The internet is the library of the new digital world. It contains enormous information. Sometimes, finding the right answers to the question asked can be quite tricky. Developers are trying to find ways to make the data more clearer for the viewers. Developers are using Prop Tech for collection, analysis, conducting a comparison of data.
Users can use in-depth comparison and analysis to make decision-related to real estate investments. Some Prop Tech solutions carry out functions, including automated property valuation, estimating rent amount, etc. In simpler words, Property technology advancements are changing the way buyers, sellers, renters and, buy, sell or rent a property.
- Al changing indoor navigation, real estate marketing
The use of Artificial Intelligence in real estate marketing has taken digital viewer experience to another level. Prop Tech marketing trends like visualizations, virtual tours, 3D models, digital floor plans, etc. enhance the buyer’s experience. With the use of these technologies, buyers, renters, realtors, and property owners can save their time and money.
We all are aware of the fact that one that pleases eyes has a higher chance of leaving an impact on viewer’s mind. These AI marketing techniques allow viewers to feel the property. Viewers can tour the property virtually and check it for room size, kitchen area, spatial management, etc.
- Artificial intelligence algorithms assistance
AI is penetrating almost all aspects of the real estate industry. It not only provides property-related information to buyers, and technology itself is very beneficial. AI algorithms are used by buyers and renters to find the house of their dreams that too at the best possible price.
Benefits of using AI in real-estate:
- Data analysis
It is more inclined towards machine learning than artificial intelligence. Data analysis through machine learning algorithms are analyzing incoming data and provide real estate owners with multiple optimal options, maintaining transparency with their customers.
AI increases the significance of the leads and recommendations. If you are in the real estate business, you can use AI algorithms to customize buyer’s interaction with your company’s website.
- Localization and the power of geolocation
One of the most in-demand technology trend in real-estate is geolocation. Viewers use this technology to have the exact location of their property. Also, interested buyers can check details such as the nearest market, school, etc.
With geolocation technology, buyers can even check various property-related data such as topography, soil detail, flood zone maps, etc. This would help them in assessing property value.
The present and future of any real-estate businessmen depend a lot on how they make optimized use of Prop Techs. To stay ahead of the competitors, the earlier you use these technologies, the better it will be.