No industry is immune to technological advances, but real estate is one niche that has been traditionally slower to adapt to new trends, but not any longer.
PropTech is changing the way we buy, sell and interact with our properties.
Here are the top five propTech trends that are happening now:
Proptech trends in the real estate sector
The real estate and property management industries are uniquely positioned to benefit from big data.
The more data we have, the more data driven decisions we can make. Big data is about gathering real time and historical information about all kinds of building systems such as electrical, HVAC, fire/life safety, utilities, telecommunication and others, and then translating that into proactive maintenance.
In some cases, it may even alert a property manager to an equipment failure before it happens, allowing them to perform maintenance or source a replacement with minimal downtime.
That keeps tenants and property managers happy.
AI and Machine Learning
While the real estate and the property industry might have been slower to adapt to changing technologies, they are catching up. AI And machine learning will make the data being collected more actionable.
For example, right now, property sites like JHELY rely on simply preferences like location and size to display properties for sale.
In the near future, however, AI (artificial intelligence) may enable these sites to recommend properties based on preferences, personality traits and values.
Chat bots on these site may be able to answer consumer questions quickly and easily, and they might even accompany buyers to showings.
Several companies are working on technology that would allow a real estate agent to conduct showings via a tablet or chat bot allowing an agent to do more showings in a day.
AI will also be able to help predict pricing trends more accurately. This type of technology would look at historical trends in the market for an area but might also take into account area crime, schools, transportation and marketplace activity, it may also make buying experience faster and easier.
Startups are already creating ways to digitize the entire home buying experience whereby no more reams of paper to read and sign at closing.
Virtual and Augmented Reality
Accordingly a survey by the national association of realtors, nearly half of all potential home buyers search for properties on the internet first.
Virtual reality and augmented reality will make the home buying process even more exciting and accessible.
Realtors can create virtual reality tours of properties that potential buyers can experience from the comfort of their own home or to help long distance buyers virtually tour properties they can’t physically visit.
Staging is a great way to increase the perceived value of a property, but it can be a heavy expense.
Companies like roOomy are enhancing the online buying experience by allowing realtors to digitally to virtually stage a property by digitally adding furnitures and accessories to interior photos.
For new builds, virtual reality can create realistic architectural images and walkthroughs to help buyers understand and experience the property even before construction begins.
And for property managers, creating a virtual reality tour of the space might help new tenants get acquainted with their space, instead of lengthy instructions of how to use the thermostat or environmental controls for example, a virtual tour can literally walk the tenant through the process.
Internet of Things (IOT)
IOT refers to smart devices and appliances that’s are digitally connected to the cloud constantly receiving and sending information.
As mentioned earlier, machines that include smart sensors can alert owners or property managers to potential problems or even allow for predictive maintenance, but in the future, buyers maybe able to download a comprehensive history of a home’s maintenance and upkeep through its smart devices connected to the electrical, HVAC and plumbing.
No more guessing or paying for costly inspections to understand the condition of a house. These sorts of devices also help with energy efficiency and can create real cost savings for the homebuyer or property owner.
As the ioT grows, we’ll go beyond individual smart devices and start seeing entire smart buildings and even smart cities that are constantly connected, sending and receiving data.
That’ll pave the way for big data, AI and Machine learning to create even more insights and improvements we might not be able to predict yet.
Drones might seem like a gimmick in real estate, but they aren’t going anywhere. They have the potential to change the market.
Digital multi-perspective site visits are now possible, creating emotional story telling around a property.
They provide relatively easy and budget friendly aerial photography that would’ve been prohibitively expensive just a few years ago.
They’re especially useful for displaying bigger homes and properties, giving a real feel for the size of a place. Drones can also be used to provide a tour of the area.
For new builds, a drone might capture the feel of a new neighborhood. It could also help people considering a move to a new town or neighborhood to get a feel for the place before visiting.
Drones can also be used to spot potential risks or maintenance problems which could lower the price of a property or be used in negotiations.
At some point, drones may even be used to tour properties remotely, right now it’s difficult to navigate a drone through a small enclosed space like a typical home, but for large commercial or industrial sites, the potential already exists.
Drones can also be useful when surveying properties or creating drawings of as-built properties.
As you can see, property and real estate professionals should ignore technological innovations at their own peril. These PropTech trends are just the beginning of a wave of improvements and changes to come.Jhely Cruz M.