Last Updated on January 27, 2023 by Lamudi
The real estate industry weathered the storm well despite the volatility caused by unforeseen events like the pandemic. This is thanks to technological improvements and tools that assisted all stakeholders during these trying times. Blockchain, virtual reality, and artificial intelligence are some of the hottest technology topics. Various industries have already felt their influence. Since the real estate sector is not an exception, businesses in the real estate industry are compelled to adopt these trends.
However, the industry is under tremendous pressure because of technology’s potential and the demand to innovate. Therefore, the question that should naturally cross the thoughts of many is: what are the possible real estate tech trends this 2023?
A pandemic quickly changing the real estate sector impacted property technology. Agencies and customers faced various problems, which led to several inventions and improvements that are expected to continue to increase in the future.
One of the major real estate tech trends this 2023 is the growth of virtual real estate and investment opportunities. The development of additional real estate technology trends is fueling this rise.
Land in a virtual world, which are essentially pixels, is real estate in the metaverse. These programmable spaces let users take part in a range of activities, such as interacting with others, playing games, going to virtual events or meetings, and more. Real estate investors can flip or lease properties in the metaverse, much like in the real world. Investors will certainly exercise care, though, as buying property in a virtual world is still a rather novel idea.
The owners of blockchain-based virtual real estate (VRE) stand to gain both immediate and long-term advantages, such as:
- current utilities
- interaction in embedded films, pictures, NFTs, and objects
- single-player and multiplayer in-game options
- Integrations of “play and earn”
- Twitter rooms with screen-sharing and town hall-like features
- access to exclusive gatherings and NFT-gated neighborhoods
AR & VR
Although the pandemic has fueled it, virtual reality (VR) and augmented reality (AR) are not new trends. The restrictions on physical activities compelled many realtors and property owners to use virtual property tours an alternative to in-person tours. This approach over traditional property showings demonstrated considerable advantages, pointing to the successful future of real estate technology.
The use of VR and AR should increase, especially among investors, making it one of the major real estate tech trends in 2023. While prospective homebuyers might prefer to visit the property in person and get a sense of the neighborhood before making a decision, 3D tours and walk-throughs frequently meet the needs and requirements of investors.
Blockchain-based smart contracts are algorithms that run when specific criteria are met. They execute contracts automatically, without further delays or the requirement for an intermediary. That way, both parties can see the results immediately. They can also automate a workflow to perform the next activity when specific criteria are met.
Smart contracts reduce the general ambiguity of traditional contracts in real estate transactions. In real estate transactions, traditional contracts’ vagueness makes transferring property ownership challenging and risky for both parties.
When it comes to huge projects like shopping centers or other infrastructure development, construction management may be a challenging and time-consuming procedure. In 2023, a significant transition in the construction industry is expected as a result of the scarcity of raw resources and the increased use of digital technology.
Digital innovations like artificial intelligence (AI) and the internet of things (IoT) will be crucial. By eliminating the need for manual inspections and allowing them to monitor progress in real-time, combining digital tools with more conventional ones like RFID tags might save construction managers money and time. This will ensure that projects are completed on time and within budget.
In several fields, including real estate, 3D is being used more frequently, simplifying our lives. One of the most well-liked real estate tech trends in 2023, 3D real estate has a number of useful applications that have great value. 3D models are also an essential tool to bring in the era of technological advancements in real estate.
Using 3D modeling, we can quickly turn a set of 2D designs into an extensive 3D model. As a result, viewers may virtually explore a 3D property model and understand every inch of it.
Due to the growth of AI and automation, omnichannel interaction is soon taking over many businesses. Thanks to omnichannel engagement, real estate agents and businesses may communicate with several customers at once, regardless of the channel.
Customers will interact with your business through a variety of digital channels such as websites, social media, and mobile applications. Then, they will anticipate finding their ideal real estate properties on all of these platforms. They should be able to access all the information and assets they need at any time and on any device with just one web search.
Analytics Enhanced by AI
The real estate technology industry has been involved in developing artificial intelligence (AI) for decades, with notable advancements in recent years. Real estate investors, for instance, may now find and analyze deals at rates and speeds that were previously unthinkable. This is now achievable because of big data and AI.
For searches while on the go, real estate apps offer unprecedented convenience. Sellers, tenants, landlords, and agents are some examples of real estate stakeholders. As a result, several real estate mobile apps emerged to address various challenges.
Customers, for instance, might utilize house assessment real estate programs to examine all of the information surrounding the property value. Sellers can use apps like the Lamudi app to determine the value of their homes. The assessment uses AI and ML techniques based on the location, square footage, number of rooms, and other parameters. There are also applications for renting houses. They give users the option to browse for different varieties of rental housing.
One of the best developments in IT is cloud computing. Thanks to cloud services, agents can use digital tools like electronic signage conveniently and affordably. The following are a few instances of how cloud computing might benefit your company:
- moving to the cloud can save you a lot of money, and the cost is also flexible
- clouds are continually looking to improve their security tools
- continuous data backups are yet another benefit of cloud-based data protection
The automation tech trend in real estate encompasses transactions and operational procedures. Today, it isn’t easy to envision an agent’s job without a customer management system (CRM). CRMs aid in automating redundant procedures and preventing the accumulation of mundane activities. Here are some benefits a CRM offers real estate agents:
- a CRM builds a database of customers and monitors their online activity for later analysis
- the entire client conversation history appears when the customer calls the realtor
- personal mail campaigns and client categorization
Importance of Technological Advancements in the Real Estate Industry
Technology has improved the lives of agents, investors, homeowners, lenders, property managers, and real estate business owners.
Such huge data shape the strategy as an investor or marketer, enabling you to identify and go after lucrative prospects. You may quickly improve your efficiency and production, produce more qualified leads, and target the proper demographics. Today, listing forums and websites like Lamudi are essential resources for landlords, sellers, and real estate professionals. With the data, they may use the sites to create targeted offers, attract more attention, and produce more leads.
Every wise choice, whether it be for something as simple as choosing your next vacation destination or something more significant like an investment, is based on data. With data-driven strategies, real estate investors can better assess opportunities and make lucrative investments. A vast resource of information is simply a few clicks away. By delegating the labor-intensive tasks, investors will have more time to assess their investment plans and develop a more substantial and lucrative real estate portfolio.
How can a consumer locate the best property? Thanks to modern technology in real estate, consumers can now study a lot from the ease and comfort of their homes or workplace. For instance, you can use this website to identify where to move and make an informed choice when looking for the appropriate house location. Big data, which includes market indicators like real estate prices, mortgage rates, and inventory availability, to name a few, is simple to research and access.
Additionally, clients may learn more about a neighborhood’s access to services like networks, energy, and water and its financial, educational, and healthcare institutions.
With such access, choosing the appropriate area and property hunt for the ideal home will be simpler. This information empowers consumers, but they are not the only ones who benefit.
For more tips on the Philippine real estate market, check out other related journals on Lamudi here.