Technologies Disrupting Real Estate Industries
While technology has disrupted many industries, real estate has been slow to adopt new
technology. However, new technologies are changing the way consumers are buying, renting, and selling properties. Real estate software services help out the professionals to
control, manage, and track the property. Real estate professionals are left with no choice but to equip themselves with the latest skills and knowledge to take advantage of disruptive technologies.
Here are 5 major technologies that are reinventing real estate.
Technologies Disrupting Real Estate Industries
1. Blockchain technology
The blockchain sector is expected to grow from USD3.0 billion in 2020 to USD39.7 billion by 2025 worldwide.
Blockchain technology uses distributed ledger for real estate transactions. The ledger is like a shared database that is synchronized across a network that spreads over many sites. All real estate transactions will have public witnesses as participants having an identical copy and any change made will reflect on all the copies.
Blockchain eliminates the need for third-party intermediaries and ensures transactions are
transparent. Additionally, cyber-attacks and real estate investment scams are less likely with blockchain systems.
2. Artificial and machine intelligence
Artificial Intelligence has the ability to interpret data that it has been provided with. Additionally, it can provide insights about real estate property, markets and even project return on investment (ROI) from the rental property.
Currently, when someone is looking for a property, they input basic parameters such as location, number of bedrooms, and price. Soon, AI will allow sites to guide potential buyers towards properties that match their requirements and tastes.
A chatbot is a great example of AI and could even help a potential buyer to several property showings. Currently, a few companies are investing in technology that would facilitate an agent conducting showings on chatbots or tablets. This also opens up the opportunity to conduct many showings simultaneously.
Simply put, AI is set to make the buying property experience seamless right from start-to-finish.
Instead of simply storing real estate data on listings and agent info, AI can modify the way
agents do business and customers make investment decisions. Also, software such as Digidesign and ZipForms are making signing with an actual pen a thing of the past.
3. Internet of Things (IoT)
IoT includes devices and appliances connected to the cloud that keeps sending and receiving information. Globally, the IoT sector is expected to exceed $1.5 trillion by the year 2025. This has resulted in a significant increase in the number of active IoT devices across the globe.
IoT for real-estate includes predictive maintenance and will soon roll out more comprehensive resources that a homeowner or landlord utilizes. For example, informing the tenants of the maintenance history of an appliance.
Smart devices can be connected to utilities such as plumbing and electrical. This will help save costs on house inspections and conserve energy and bring about a more environment-friendly result.
Eventually, IoT will grow from smart appliances into smart buildings and smart cities. Soon, the cloud system will improve and expand with sending and receiving data becoming an integral part of our lives. This will allow for improvements and efficiency beyond what can be predicted yet.
4. Big Data
The real-estate industry can reap many benefits from big data. Big data refers to a large amount of data that is analyzed computationally to reveal patterns, associations, and trends. In the U.S, companies like Redfin, Zillow, or Trulia have based their entire model on big data.
They achieve this by collecting data on buying and selling trends in a specific area, demographic information, internet traffic and results from customer surveys. The data is then analyzed and collated and the results are used to gain insights into home values, pricing, and the potential value of an area.
Additionally, big data is a great source of information for managers and property owners.
Historical and real-time information about a variety of building systems can be translated into proactive maintenance. For example, telecommunications, fire safety, utilities, HVAC, and electrical, where a manager can be notified before equipment failure occurs. In other words, maintenance or replacement can be scheduled ahead of time.
5. Augmented Reality (AR) and Virtual Reality(VR)
According to the National Association of Realtors, 50% of people looking to buy a home today will search online first. AR and VR are becoming increasingly cheaper and easier for tech-savvy agents to implement and are the way of the future.
Both these technologies create an exciting and informative experience from the comfort of
one’s home. Buyers feel more confident when buying from a distance.
Tenants can take a virtual tour of the property and become acquainted with it before moving in. Pre-shot videos can be more like educational videos taking them through the process of turning on the heater or air-conditioner or showing them where the fuse box is compared to the traditional written or verbal instructions.
What does it mean for the future of the real estate industry?
It means that the growing use of disruptive technologies in real-estate is for real and can’t be ignored. While some people believe that this would make the role of an agent obsolete, others believe that it won’t disappear. Instead, the agents need to change and adapt. That is because much of the real-estate business relies on advice and guidance from a human expert.
Final words
The usefulness of disruptive technologies can’t be ignored. Instead, it's better to explore them and understand how they can benefit the real estate industry. The best way to leverage these rapidly evolving technologies is to consult an effective and recognized PropTech solution provider or consulting company.
Author Bio: Tony believes in building technology around processes, rather than building
processes around technology. He specializes in custom software development, especially in analyzing processes, refining it, and then building technology around it. He works with clients on a daily basis to understand and analyze their operational structure, discover (and not invent) key improvement areas, and come up with technology solutions to deliver an efficient process.
