- Key Real Estate Tech Trends Transforming the Industry
- Artificial Intelligence
- Immersive Technologies
- Internet of Things
- Building Management Systems (BMS)
- Big Data Analytics
- Property Management Software
- Property Aggregation Platforms
- Data Security
- Looking for Real Estate Application Development or Upgrades?
From virtual reality home tours and automated property management to AI-driven insights about buyer behavior, it's clear that the newest real estate technology trends are changing the game.
Staying ahead of the curve and understanding the trends in real estate and technology trends that will shape the real estate industry in the coming years is essential to succeed in this business. This article will show some of the most exciting real estate tech trends for 2022 and onwards and how real estate agents can take advantage of them.
In this article:
Key Real Estate Tech Trends Transforming the Industry
Let's dive into the world of new technology in real estate and prepare you to transform your real estate business!
Artificial Intelligence (AI), along with machine learning, is undoubtedly the future of real estate technology, as it has the potential to transform the way real estate companies operate completely.
According to StartUs Insights, AI-based smart solutions comprised 26% of innovations in 2022. This real estate technology can be used in many facets, such as:
- Conducting historical data analysis;
- Optimizing pricing strategies;
- Automating customer service tasks;
- Determining global real estate market trends;
- Delivering accurate valuations using previous data;
- Helping identify consumer needs;
- Recommending relevant properties;
- Enhancing the overall purchasing experience.
For instance, artificial intelligence algorithms can help agents identify patterns in customer behavior and tailor their marketing campaigns accordingly. Another application is optimizing online ads so that they are better at targeting the right audience. By leveraging AI, agents can gain an edge over their competitors, reach the right people with their message, increase conversions, and provide a more streamlined service for their prospective buyers.
Overall, AI has undisputedly been one of the most significant advances in real estate technology trends and is likely to become even more integral in the years to come.
Rex Homes uses AI algorithms that place ads on different channels (e.g., social media, marketplaces) based on target audience metrics, such as purchase history. Their specialists also use programmed robots that can answer almost any question about the real estate object they're showing to potential buyers. As a result, within two years of launch, they closed 231 deals, raised $25.5 million, and reduced brokerage commission to 2% compared to the average of 5-6%.
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Immersive technologies allow you to provide prospective clients with an immersive 3D experience of a property, which helps visualize what it would be like to live on sight with the power of virtual or augmented reality. Goldman Sachs estimates that the AR/VR market will reach almost $80 billion by 2025, not the least thanks to the real estate industry.
Many real estate companies already give potential customers virtual tours of their houses so that customers can tour several properties from anywhere in the world.
Not only do these experiences help potential buyers make more informed decisions, but they also provide a much better customer experience.
After all, why waste time visiting properties you're not even sure about when you can take virtual tours from the comfort of your own home? And no matter the weather—be it sunshine or Covid-19.
Additionally, builders and architects can use virtual reality (VR) and augmented reality (AR) as smart building technologies to create 3D models of a potential project before committing resources to build it. This allows iterating faster and validating ideas before investing in construction.
Artisan Staged Homes & Room Redesign uses visual staging for empty properties, which allows them to increase the average sales profit by 17% and sell 87% faster.
On a different scale, PIXO uses VR training in construction, which helps learn the same material 40-60% faster than in a traditional setting.
Internet of Things
Internet of Things (IoT) smart devices can do more than just monitor the physical environment of a building; they can also help monitor activity and protect from unauthorized usage. For example, IoT sensors are used in various systems within buildings to track water pressure and electricity usage. You’ll know if something needs maintenance if any of the indicators are off the charts.
In the coming years, IoT devices will also become increasingly intertwined with other aspects of real estate management. For example, this real estate technology can be used to:
- Help regulate heating and cooling systems to save energy and reduce costs for property owners;
- Connect with smart locks, so you can control access remotely or based on specific conditions;
- Enable agents to provide a more personalized and seamless experience;
- Monitor customer activity on the property so that agents can respond to any inquiries quickly and efficiently;
- Send automated notifications about maintenance issues or late payments.
All in all, IoT devices are set to revolutionize the real estate market in the coming years. By leveraging this powerful technology, real estate agents can provide a more tailored and efficient service to their clients. This could potentially increase customer satisfaction and loyalty.
CBRE uses IoT sensors—they collect data about building performance, like energy usage—to improve building management and optimize operations. In one case, using such sensors allowed the service to identify HVAC system issues and cut energy costs by 20%. CBRE is also helping Shell reach its goal of reducing 20% greenhouse gas emissions by 2035, thanks to IoT.
Building Management Systems (BMS)
One of the newer property technology trends is building management systems (BMS). These software tools allow real estate firms to monitor and control the physical environment of a building. This includes property metrics like temperature, humidity, lighting levels, air conditioning, security systems, and more.
Such real estate software can also be used to automate certain property management tasks, such as scheduling maintenance work or controlling the flow of people into specific areas.
BMS is set to be one of the most important technology trends in real estate, as it can ensure more efficient resource usage and help turn ordinary buildings into smart homes. By automating certain aspects of building management, BMS can save time and money, thus freeing up resources that can be used elsewhere in the organization.
Additionally, they allow property managers to monitor the physical environment of residential and commercial buildings in real time, which can help them detect potential issues before they become serious.
The technology can also help building managers provide a more personalized experience for property buyers, potentially increasing their satisfaction and loyalty.
Based on customer needs and preferences, BMS can be used to automatically adjust the temperature of a room according to the occupants' desired settings or turn off lights when no one is in the room.
BMS is mostly used to cut energy costs, and even governments see the benefit in saving up to 30% of energy. For example, in the European Union countries, such systems will become mandatory by 2025, and in the UK, they are recommended for buildings with and over 290 kW effective output. Additionally, they help maintain buildings and fix potential issues before they become a huge problem.
Big Data Analytics
By leveraging such powerful technologies as big data and analytics, agents can gain valuable insights into customer behavior, market trends, and investment opportunities. This will enable them to make timely and informed decisions that can improve business performance.
Numerous real estate professionals use commercial real estate technology on market-related big data to identify properties that fit their investment criteria. This data can include everything from listing descriptions to demographic data, real estate industry trends, and preferences of potential tenants.
With this valuable information at their fingertips, agents can make decisions that best suit the needs of their clients.
Using big data and analytics can also help real estate agents understand their audience better. By collecting and analyzing customer data, agents can gain a deeper understanding of their preferences and needs.
Big data analytics will enable more personalized services that could potentially increase customer satisfaction and loyalty. Additionally, it can detect patterns in customer behavior, which can then be used to target marketing campaigns and promotions better.
The real estate listing platform Redfin uses big data analytics to provide users with insights. For example, it can show how likely a property is to sell within a certain period, which creates a sense of urgency for potential buyers. However, this isn’t some empty marketing ploy but rather actual data.
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Property Management Software
CRM systems are a life-saver in the real estate sector. They allow real estate agents and property managers to easily store and manage client information, keep track of real estate deals in progress, and make sure sensitive documents remain secure.
Real estate management software can benefit the real estate sector in many ways:
- Streamline communication between agents, landlords, and tenants;
- Efficiently process applications, leases, and property maintenance;
- Enable agents to easily keep track of their various listings, as well as store all relevant documentation and property data securely in one place;
- Provide real-time updates about the status of a property and allow a real estate agent to respond quickly and manage any issues that arise;
- Offer various analytics tools that assist agents and property owners in identifying trends in customer behavior, measuring their performance, and gaining valuable insights into the market.
All these features can ultimately lead to improved efficiency and profitability for the real estate sector.
TurboTenant allows property managers to screen potential tenants within minutes—check credit history, criminal background, and eviction cases—to decide whether they can be trusted.
The distributed ledgers in commercial real estate technology can be used to securely record property titles and contracts, as well as facilitate seamless transactions between buyers and sellers. By leveraging blockchain technology, all stakeholders in the real estate sector will benefit from improved transparency, security, and efficiency when managing property titles and contracts.
Blockchain-based smart contracts can also enable faster and more secure transactions immune to fraud or manipulation. Smart contracts are digitally signed, legally binding agreements between two parties that ensure all conditions set out in the agreement are automatically met without manual intervention.
Real estate technology trends like this eliminate middlemen, reduce transaction costs, and can facilitate faster completion of real estate transactions.
PropertyClub doesn’t just offer a secure platform for closing real estate deals using smart contracts but even has its own coin, though it accepts transactions in other currencies.
Property Aggregation Platforms
Numerous real estate companies nowadays have an online presence where they list properties in their portfolio for their clients to view. However, what if they had access to a platform that collects data from multiple sources and provides them with up-to-date listings at their fingertips?
That's where property aggregation platforms can do wonders in the real estate industry, making it easier for agents to find the perfect property for their clients while also allowing them to compare prices and gain property industry insights.
These platforms provide agents with a comprehensive overview of the market in their area by gathering data from numerous sources, such as public record databases, regional real estate associations, and more.
Property aggregation platforms can even be used to provide prospective clients with virtual tours of properties they are considering purchasing. The technology also allows agents to track changes in the market and identify potential opportunities they would otherwise have missed.
Property aggregators use crawlers like Apify to collect data from different sources. For example, the Czech platform Realitio says they get a property listed on their website 10–20 minutes after they are posted to the source website. A good property aggregation platform stays up to date with the source sites, which minimizes the number of inactive properties listed.
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Using drones in the real estate industry may revolutionize how real estate is marketed and inspected and potentially increase property and land values:
- Better marketing materials. Drones give agents a bird's eye view of properties, which can be used to create stunning aerial videos and photos to attract prospective buyers;
- Improved pre-sale activities. Drones can quickly inspect rooftops and other hard-to-reach places, making it easier to check for any potential issues or damages;
- Tracking of changes in the real estate market over time. Drones can map out entire neighborhoods and record data collected from price fluctuations. This allows real estate investors and agents to analyze the market more accurately and make informed decisions about their investments.
Overall, drones offer faster and more accurate inspections, improved marketing capabilities, and invaluable insights into the real estate market. It's no surprise that this technology is predicted to be widely adopted by real estate companies in the coming years.
Drones may be the most impactful piece of tech used in real estate. Agents devise various uses for them, not limited to aerial photography; some agencies even offer virtual property tours guided by drones with high-resolution equipment. Keller Williams and Realtor.com use drones for this very purpose.
Aside from governmental regulations, protecting sensitive data is a matter of reputation for any real estate business. The real estate industry is no exception because businesses hold volumes of valuable information about real people that can be used and abused for many purposes, like phishing for credentials of bank data.
The data security trend is, by far, the most essential one in real estate development going forward and will stay a priority after 2025.
Many software companies and startups offer solutions for encrypting data, monitoring and preventing cyberattacks, securing network traffic, and managing risk. But there are also tools for tracking regulation compliance so that you don’t run into issues with data security laws.
There are building cybersecurity tools that enable security staff to manage risk and access systems remotely to manage vulnerabilities and backup data. This allows you to provide a safer working environment on real estate development sights.
Tokeny offers a blockchain platform that offers real estate security tokens. Tokenization helps combat poor accessibility of properties due to physical location, low liquidity, and siloed data. Tokeny was hired in 2020 to fund real estate in Luxembourg, and as a result, the platform helped cut compliance and administrative costs by 90%.
Looking for Real Estate Application Development or Upgrades?
Geniusee is a software development company that helps real estate businesses, property owners, real estate agents, tenants, or brokers keep pace with the fast-moving real estate industry.
The Geniusee team of tech professionals will provide your company with custom real estate software development and mobile app development, such as:
- property websites and mobile apps;
- real estate platforms;
- real estate crowdfunding platforms;
- listings or complex internal automation systems for real estate companies;
- real estate configurations;
- sales tools for real estate, and more.
We offer software development for real estate and solutions to help you effectively manage, sell, lend, evaluate, or buy real estate assets.
The next few years will be an incredibly exciting period for the real estate industry. As technology advances rapidly, new tools and services are emerging that will revolutionize the way we do business.
Real estate technology trends are continuing to advance and evolve, with more and more real estate companies turning to tech-based solutions for their real estate needs. From property aggregation platforms and drones to predictive analytics systems and custom software solutions, there's no denying the real estate industry is changing drastically.
For any real estate company, staying on top of these software development trends in real estate is crucial to ensure they remain competitive in the market. When partnering with an experienced software and mobile applications development company like Geniusee, real estate businesses can reap the benefits of these groundbreaking technologies and stay ahead of their competitors.