The real estate industry is a relatively traditional industry that has been slow to adopt modern technologies. However, this is changing as the industry is undergoing a significant digital transformation.
Therefore, PropTech startups and scaleups are leveraging emerging technologies and impact various aspects of the industry. The use of technology is broadly focused on two fronts; how to improve the client-tenant experience throughout the property lifecycle and how to make informed investment and property management decisions
Here are the 5 Technology Trends in Real Estate shaping the future of Proptech:
1. AI and Machine Learning for automation of back-office processes: whereas Big Data in Real Estate is about structuring large amounts of data, AI and machine learning help to make it more actionable. From robust search prediction functionality to autogenerating personalized email sequences to customers based on their life events, AI will do the job for you!
2. Immersive Technologies: touring multiple properties is still a standard practice for property investors to find their ideal match. But this is a tedious process with various limitations like time, location access, and, most recently, the advent of COVID-19. To tackle these limitations and improve buyer experience, the use of VR and AR technology has risen as a key property technology trend in the industry. Many real estate firms now offer virtual tours of their properties to prospective clients. This allows clients to tour multiple properties in a short time from anywhere in the world. Similarly, the use of AR to stage properties for clients is increasing. Based on individual tastes, real estate agents show different furniture setups to different clients which allows them to envision their future property. These technologies make the buyer experience more immersive and also assist agents to convert potential leads into actual sales more swiftly.
3. Internet of Things: we are living in a digital age where convenience and quick access to information is a top priority. The use of various types of IoT devices and sensors facilitates this. For example, voice and speech recognition sensors in virtual assistant devices allow them to communicate with people and control other smart devices within a home or workplace. IoT devices like cameras and motion detectors also monitor the physical environment of a building and keep it secure from unwanted access or activities. IoT sensors now find use in all types of systems within a building from water pressure monitoring to electricity usage monitoring and more. The data from these sensors monitoring different aspects of the property facilitates the development of a digital twin. Digital twins of buildings don’t just provide an overview of building functions but are also used to control these functions.
4. Virtual Reality for better online search & home buying experience: according to a report by Goldman-Sachs, Virtual Reality will be at the top of Proptech disruption by 2025, with an estimated 1.4 million realtors relying on the technology by that time. This number makes up the bulk of the total professionals in this area today. The application of VR in Real Estate may vary, from virtual tours of properties to augmented reality solutions for digitally adding furniture to the existing interior (like in roOomy).
5. Chatbots for better customer experience: initially powered by AI, chatbots have become a must-have feature for almost every website. Chatbots can benefit your business in a number of ways, including but not limited to providing detailed, actionable insights into your customers’ greatest pain points, reduction of manual work, and improving customer satisfaction.
In conclusion, proptech trends in the real estate industry significantly improve the property buying experience for clients, automate building processes, and allow real estate investors and firms to make more informed decisions.