Real estate technology includes many IT solutions, from property management software to smart home devices and tools available through the Internet of Things (IoT). The newest real estate technology helps find deals, process transactions, or manage properties, making customer service easier and more efficient.
Technology in real estate benefits a wide range of users, including owners, investors, and tenants. For example, landlords are increasingly using virtual reality technology to allow potential tenants to take virtual tours of the property. Prospective clients benefit from the ease of “touring” properties from the comfort of their own homes, reducing the need to travel back and forth between apartment buildings.
According to Statesman, the real estate market is the most critical part of the global economy, with an expected growth of approximately $729.40 billion by 2028.
Source:https://www.klipartz.com/
Real estate technology has evolved rapidly over the past decade. Let’s consider how modern technological innovations are changing the real estate market, affecting investments and buying and selling processes.
How Have Trends in Technology Affected Housing?
Proptech is an acronym for “property” and “technology.” It is an industry that combines real estate technologies such as cloud computing, mobile solutions, artificial intelligence (AI), and the Internet of Things (IoT) to provide more efficient, cutting-edge solutions for the real estate industry.
Proptech is called CREtech for commercial real estate technology or REtech for real estate technology. It generally refers to software used in real estate tools and applications.
Proptech solutions can help you with temperature control for smart homes, intelligent lighting systems, innovative security systems, property management software, business process automation, and virtual property tours. Using Proptech solutions, real estate companies effortlessly improve their qualifications, enhance service quality, and minimize costs.
“One of the trends we’re seeing among new home buyers is the desire to optimize homes that satisfy their well-being”. — Farnoosh Torabi, personal finance expert and presenter of the SoMoney podcast.
Undoubtedly, Proptech is gaining huge popularity due to its revolutionary potential in the real estate industry.
How Are Technologies Changing Real Estate?
Augmented reality (AR) and virtual reality (VR) simplify real estate viewing, making it easier for architects and engineers to model how projects might look when finished.
Another technology that greatly helps in real estate designing is called BIM (Building Information Modeling). It provides a digital representation of the physical and functional characteristics of architectural objects. BIM is a shared knowledge platform that enables better real-time decision-making throughout the life cycle of a construction project. It allows team members to perform various simulations (e.g., construction, design changes, or energy consumption) and prevents information loss. After the completion of the project, the technology facilitates repair and maintenance. More and more developers are looking to integrate BIM programs with robots and other machines, which can reduce the need for expensive building materials and labor. It will help ensure that all parties involved in the transaction (project sponsors, architects, designers, lenders, asset managers, etc.) are moving in the same direction using the same data.
Property management is another area where technology has made a significant impact. For instance, smart water meters can be used to control leaks: if excessive water consumption in one place is detected between 1:00 and 5:00 a.m., it most likely indicates a leak. The property manager is notified immediately to solve the problem.
The software can also improve communication with tenants. For example, some property management systems have built-in features that allow landlords to send text messages when rent is late. Tenants can opt out of automatic notifications.
Real Estate Technology Trends
Recently, business leaders have begun integrating real estate technology into their operations. This approach helps reduce the need for manual entry of repair and maintenance requests, handwritten work orders, and photocopies of rental applications.
Commercial real estate is a historically opaque industry. Unlike traditional free markets, buyers cannot access all information. The latest software collects reliable data from the public and private sectors that users can check out. It makes looking for potential buyers, sellers, partners, or investors easier.
However, having data is not enough, as you need to know how to analyze it. Artificial Intelligence (AI) plays an essential role in this process. Currently, according to PricewaterhouseCoopers, organizations are actively using AI to simplify work related to report cards (78%), paperwork (82%), and planning (79%).
With modern technology, real estate marketing has changed dramatically in recent years. Some property management platforms integrate with online classifieds services to promote apartment listings. Real estate agents see who views the ad and then track and process applications from those leads as needed. It helps to accept rental applications, sign rental agreements electronically, and receive payments online using the same system.
Real estate mobile apps have been around for quite some time. However, in the coming years, we will see a surge in better experiences with technologies such as Business Intelligence, Big Data, 3D printing, 5G, and drones. Today, most people are looking for apartments without leaving their own homes. They use Google, Craigslist, Facebook, Zillow, and Apartments.com to find properties that fit their specific criteria. Web conferencing tools like Zoom are increasingly used to communicate with investors without meeting them face-to-face.
Technology is becoming vital to the commercial real estate industry. Those ready to accept new technology in real estate will soon be ahead of their competitors.
