Technology Trends Disrupting Real Estate in 2023

No industry can refrain from technological advancements, but the real estate industry has been relatively slower in adapting to new trends. Not anymore!  

Some trends truly weather the storm and bring about new changes in all spheres of life. Owing to the impact of technological trends, there has been a major paradigm shift in terms of how the real estate industry works. This blog will take you across some technology trends that have altered how the traditional real estate market operates.   

Matrix to Metaverse

An Evergreen Blockbuster- Matrix showcased a dystopian future with machine-constructed simulations that distracted people by involving them in virtual reality. Who would have thought something that surfaced in 1999 would become a partial reality of the future?

Technology has spread its legs across fashion, film and gaming; it is a reality that is here to stay. This has led to the conceptualisation of Augmented Reality (AR), Virtual Reality (VR), and the Metaverse. The Metaverse is a different take on land, living space and real estate altogether. It is one of the biggest disruptions in the industry today, as many have already started investing in virtual real estate in the Metaverse.

Although the Metaverse is still at its earliest stage of development, there is still scope for upgrades. Some of the features are mentioned below: 

Virtual Real Estate 

As the Metaverse develops, virtual real estate could become valuable; ultimately, assets people will be ready to pay for. Virtual land, buildings, and other assets in the Metaverse are steadily growing in value.

Shift in Demand for Physical Real Estate

Owing to growing interest in the Metaverse, the demand will likely metamorphose from physical to virtual. For example, people will spend most of their time interacting and working in a virtual setting. 

New Opportunities for Developers

Real estate developers can now create a personalised virtual space that drives interest and investment. Ideas like virtual shopping malls, entertainment centres and spaces that can attract visitors and generate revenue.  

We think someone chose the red pill over the blue one offered by Morpheus because they wanted to stay in wonderland and discover how deep the rabbit hole goes! 

How Did Technology Change the Real Estate Market?

The real estate and housing market is robust, and it is expected to amplify in the near future. Modern technology has made it possible to find useful gizmos to simplify our everyday routines. 

It may not be a bolt from the blue if we tell you about Snoop Dogg’s first Metaverse-released music video, ‘House I Built.’ But what could be a jolt is that now you can order McDonald’s virtually! One bucket of fries for us, then; who’s taking orders?

The introduction and advancement of technology have brought with it significant and disruptive changes to the real estate market. 

The top technological trends are as follows– 

Artificial Intelligence and Machine Learning 

Artificial Intelligence and machine learning facilitate data collected into action, utilising real estate algorithms through an IOT framework. This will help improvise property management, control power lighting, and security. 

Property research is mainly done based on the location, size and amenities available, but with the help of this technology, in the near future, AI will feature property recommendations based on preferences and values. 

Big Data

The real estate industry is versatile when it comes to processing data, as decisions are majorly data-driven. Several websites are able to compile and collect data on buying and selling trends in the modern market. Traffic, demographic information and consumer surveys are used for analysing and collecting data to offer insights. 

This helps in revealing the potential value of properties and certain neighbourhoods. Big data is all about gathering real-time and historical information about building systems. An agent could easily skip this kind of information as there is only limited information the human brain can retain. Big data can be utilised to discover electrical HVNC fire, life safety and telecom information. It can transform all this information and give a proactive maintenance alert to the property manager to avoid any possible mishap. 

PropTech and the Internet of Things

PropTech, or Property Technology, uses IT information to assist real estate agents, buyers, and companies in researching better properties. It utilises digital innovation to address the market’s growing needs; it is certainly booming and changing how we buy, sell, and interact with real estate.

The Internet of Things, commonly known as IoT, can be found in doors, windows, curtains, the light switches and other devices. IoT in real estate helps provide value to the property and is used as an input for security, property management and adherence. One can make their home smart with appropriate smart locks, sensors and devices that can easily run up the prices of any property. 

5G and Online Platforms 

With the arrival of the 5G network, devices can connect to a much more secure, reliable and consistent network to provide vital information. It offers an increased bandwidth and complete digital management is possible for any property by connecting two devices and sensors. 5G enables the maintenance and surveillance of real estate automated. 

From ordering food and conveyance to any part of the world, people can now browse properties as per their preference from anywhere. By extending their services, many companies have developed mobile applications to make the research for buyers and sellers much easier.

On-demand matching connects the agent with buyers. Just like when your delivery is right outside your doorstep, it’s best to hurry up and grab a good deal before someone else pounces! 

Blockchain

Blockchain has brought considerable changes to how real estate information is stored. It will not just reduce real estate fraud rates but also improve compliance. This, in turn, minimises tax leakage and boosts real estate prices. 

Virtual Tours Leveraging VR

3D virtual tours are gaining extreme popularity, thanks to VR technology that has allowed buyers to step into open houses from the comfort of their homes. With virtual tours, one can move around the space at their own pace. These tours capture the height and width of the property. Whereas three-dimensional tours can even capture depth. Special cameras and lenses are required for this particular experience. VR enables interested buyers to visit the interiors of any house, but it also lets one look at the details like furniture placement and interior ideas.

Drones

Drones can be very helpful when you want to pan through a property faster and more efficiently. They are an efficient option for aerial photography, which can enhance your virtual experience. Although drones have been in the market for a long time, they are still a great collaboration for any real estate agent. Drone photography and videography are great ways to market and visualise all property parameters.

Real Estate Bots 

Robots can make portrayal and customer care much easier from a real estate standpoint. Virtual assistants, voice bots, and chatbots can be useful for any real estate agent. A potential game changer in customer care, these bots can provide answers quickly and efficiently. Chatbots can be a useful tool to answer all the questions of interested buyers and researchers. Companies have been working with technology to help real estate agents conduct presentations via tablets or chatbots, making viewing at home more personalised and efficient. 

3D Matterport Tours 

One of the major technological advancements we see in the real estate market is the arrival of 3D matter port video tours. This virtual tour allows potential buyers to tour the property from every angle. This allows the buyer to evaluate whether or not the said property is a good fit for them. 3D matter ports became popular during the pandemic while finding safer options to do daily work.

Can Technology Replace the Real Estate Agent?

While technology has transformed many industries, including real estate, it cannot replace the value human intervention brings through real estate agents. Some major reasons these agents will always be influential are mentioned below– 

Personal Touch

Phil Dumphy has taught us how important it is to add a personal touch to each open house! 

Buying and selling properties is an emotional roller-coaster for anyone. A real estate agent that provides an individual touch is something that technology cannot imitate. They understand the requirements of each client and provide tailored advice to help you find your abode! 

Local Knowledge

Real estate agents profoundly understand the local market. They know the neighbourhoods, schools, amenities, and real estate trends properly. Algorithms or data cannot replace this knowledge. 

Negotiation Skills

Negotiating is a crucial aspect of real estate transactions, and agents have mastered this skill over the years. Negotiating with a computer program is not the same as negotiating with someone who can read and respond to human emotions.

Legal and Regulatory Expertise

Real estate transactions involve a lot of legal and regulatory paperwork, and agents are well versed with all the rules and regulations. One can read and understand these documents online, but being a part of the whole process and being able to learn on a personal level is a luxury only agents can provide to their clients. 

Marketing

Marketing requires a great deal of information and knowledge, with access to a wide range of marketing pawns from listings, social media and print media. Agents are often very efficient in marketing a particular property.

Relationships

It is essential to create a relationship with someone you work closely with to understand their likes and dislikes. Real estate agents have built relationships with other agents, lenders, and service providers in the industry. These relationships can be invaluable when it comes to closing a deal.

Eyeing the Future 

It’s safe to say that the latest trends are bringing a major change in real estate. The days of reaching out to agents and companies physically are now over, and doing personal research to look up and find land in the Metaverse is more of what the future looks like. Proptech is expected to grow drastically by 2025, and with regular technological advancements and new discoveries, these disrupting technological trends are surely influencing the traditional real estate industry. 

We can assure Morpheus that we are deep inside a rabbit hole, and while turning back is not an option, moving toward and embracing the future definitely is! 

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