Technology is quickly changing all industries over the world. Real Estate is no exception, as we are all affected in real estate for living, doing business as well as recreation, we should be aware of how technology is changing the industry.
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The real estate industry has stayed slightly behind in tech development, in comparison with other industries. However, it is racing to catch up and the difference is showing. While tech in real estate is now mainly being used to improve the buying and selling experience, the improvements are significant that it is starting to look like a totally different industry. Especially now with the entire world practicing social distancing, people can still experience properties without having to physically be there.
There are also some tools that allow real estate agencies to attend to multiple clients at the same time, give more personalized experience at lesser costs, and make transactions quicker than ever before. These are the technologies that are changing the real estate industry in the US and the world. If you happen to be in the real estate industry, it is advisable to pick up on these technologies as they will lead the path to many more in the future.
Virtual Reality (VR) and Augmented Reality (AR)
Imagine a world where you can do a complete house tour from the comfort of your own couch. With all the developments in VR and AR, this is now a reality. Thanks to 3D technologies and drones, clients can have a full experience when looking to buy real estate.
With VR technology, clients can go on a house tour and the experience will be personalized to their needs and requirements. On top of that, real estate agents can save costs by using virtual furniture to stage open houses. It also optimizes the entire process because contact will only be made after a client has already experienced a potential house.
The extent of tech development goes beyond the buying and selling process. It also covers the construction process by using devices to visualize renderings of the final products in real-life. In various cities around the country, there are already companies offering VR and AR solutions like Matterport that gives clients the opportunity to build a 3D tour of their properties.
Artificial Intelligence (AI)
AI, which is very related to data science, is the technology that is revolutionizing all industries by making our work faster and easier. Ten years ago, it might have sounded like a sci-fi plot, but today’s reality is very different. We don’t have to fear robots taking over the world because they are built to help us in our day-to-day tasks. It is important to remember that AI is designed to enhance our jobs, not to replace them.
In real estate, AI is used to speed up transactions, analyze data to find patterns like market leads or risk management. In commercial real estate, it can be used to speedily go through a great amount of data to find business opportunities. AI can also replace the more menial tasks that take a lot of time like answering questions, giving virtual tours, or even providing advice about the market.
Blockchain has a special appeal for the real estate industry. The decentralized system allows for peer-to-peer transactions without the need for an outside party like the bank. The blockchain technology and cryptocurrencies have opened the doors for worldwide transactions that are independent of borders and government regulations.
Blockchain technology allows for transparent transactions, opens the market for more people, eliminates the needs for unnecessary fees, and increases liquidity. One of the many applications of blockchain can be seen in the use of smart contracts. They are secured digital contracts that self enforce when meeting certain conditions that were previously set upon in the programming code. The content can only be viewed by those meant to view them and nobody else. The technology has also allowed cryptocurrency transactions to be a part of real estate undertakings across the globe.
Companies are also turning to tokenization. Tokenization is the process of converting real-life assets to digital assets on the blockchain. According to Matt Markham, COO of aXpire, spend management and expense allocation software, there are two big changes it creates. First, landlords can sell off just a portion of their property and investors can resell their shares on the open market through secondary exchanges. Second, individuals from various income levels and locations can have access to investment opportunities that used to be out of reach.
In conclusion, new technologies are reshaping the real estate industry around the world. From virtual reality and augmented reality to artificial intelligence and blockchain, the face of the industry is changing, making it easier for potential buyers to experience properties and for transactions to be carried out efficiently. These technologies, and others to come, will continue to alter how the sector operates in the upcoming years. If you are part of the real estate sector, keeping up with these trends is a must!
We at Praedia Real Estate Group recognize Real Estate is affected by numerous factors not only on local or global levels but also with technological advancements. We appreciate your feedback and continue to bring you information that affects Real Estate. What are factors that affect your real estate decisions? And how do you utilize this information to your benefit? Some excellent cocktail conversations (or virtual gatherings) that always spark interest!