Louis Glickman once said, “The best investment on earth is earth”. Real estate is one of the enduring industries but in the last 5 years, the real estate industry has shown amazing growth.
Grand View Research states that In 2021, the worldwide property market was worth 3.69 trillion US dollars. It’s predicted to grow by 5.2% each year from 2022 to 2030. The market is likely to increase steadily in the future because more people are being born and they want their own homes.
So, are you planning to buy, sell, and invest in houses or properties? If yes, in which direction do you plan to move forward?
Buying a property in the old-fashioned way involves:
- Wandering from one property to another to see if they fit well in your budgets and requirements,
- Making a decision on the basis of provided details and opinions, and then
- Dealing with lots of paperwork or people.
Similarly, if you are selling a property you have to deal with brokers, dealers, and platforms. The whole process consumes a lot of valuable time, effort, and money.
Well, not anymore! Technology has made things way easier. It’s like having a personal assistant helping you in the world of real estate.
Now, in this article, I’m going to talk about 5 Technologies Disrupting the Real Estate Space. They’re like the cool tools that make everything in real estate faster and simpler. So, let’s dive into them!
The Top 5 Technologies Shaping the Real Estate Space
These 5 latest technologies are really shaping the Real Estate Space, some are fully functional and some are getting better day-by-day. So, let me introduce you to the first one.
Virtual Reality (VR) and Augmented Reality (AR): Seeing Before Buying
As mentioned above, to buy a house, you will have to wander from one property to another and then check every inch of the property. With the help of the latest technologies, now instead of driving there, you can stay at home, sit on your couch, and use special technology to explore the house.
One of these technologies is called Virtual Reality (VR). It’s like wearing special goggles that make you feel like you’re actually inside the house. You can look around and see everything in 3D, just like you’re really there.
Another cool technology is Augmented Reality (AR). With AR, you use your smartphone and a special app. When you point your phone at the house, it adds digital information to what you see. For example, it can show you how big the rooms are or what the backyard looks like with a virtual garden.
Why is this so great? Well, it’s a big time and money saver. You don’t have to drive to lots of different houses to see if you like them. You can do it from home. Plus, it helps you make smarter decisions because you get a better idea of what the house is like before you visit it in person. So, you can be a happier homeowner because you know more about your new place!
Fun fact – AR and VR technologies are playing a very important part in Metaverse, which is kind of a digital universe where you can buy, sell, and lend virtual properties.
Here are two companies that have already included AR/VR technologies in their operations:
- Compass: This real estate technology company uses VR to create immersive property tours, allowing potential buyers to explore homes remotely.
- Zillow: Known for its online real estate marketplace, Zillow has integrated VR to offer 3D home tours, making it easier for buyers to visualize properties without visiting them in person
Blockchain: Securing Transactions
Okay, finally we meet blockchain. As per Global Blockchain Market Report 2021, the market size is projected to grow from $4.9 billion in 2021 to $67.4 billion by 2026, at a CAGR of 68.4%.
There is a lot of hype around this technology so let’s break this down! Imagine you have a special kind of computer system, and it’s like a magic ledger book. This book keeps a record of who owns which house and all the important stuff that happened when houses were bought or sold.
This magic ledger book is called “Blockchain.” It’s not just for money like cryptocurrencies; it’s also used in banking and real estate. When something goes into this book, it can’t be changed or messed with. It’s super secure and everyone can see it.
Now, how does this help in real estate? Well, when you want to buy or sell a house, you usually have to trust a lot of people to make sure everything is done right. But with Blockchain, you don’t need to rely on lots of middlemen. The magic ledger book makes sure everything is fair and square. Roofstock, RealBlocks, and HoneyBricks are few real estate companies that have adopted blockchain for recording transactions.
This means you can trust your real estate deals more, and there’s less chance of someone tricking you or making mistakes in the records. It makes buying and selling houses easier and safer for everyone involved. So, Blockchain is like a trustworthy assistant in real estate deals!
Artificial Intelligence (AI): Smart Property Search
Even in the presence of websites and any real-estate platforms, we still have to search through lots and lots of listings to find the right one. But now, there’s something called “AI” that’s making it much easier.
AI is like a smart helper for finding homes. When you visit websites or apps to look for a house, AI looks at what you like and what you’ve searched for before. Then, it uses this information to show you houses that are a good match for you. It’s like having a friend who knows your tastes and helps you find the perfect place.
Not only that, but AI is also pretty clever. It can predict when it’s a good time to buy or sell a property based on what’s happening in the housing market. So, it gives you advice on the best timing.
Plus, there are AI-powered chatbots and virtual assistants. These are like friendly robots that help real estate agents answer questions and handle things faster. This makes the whole process of buying or renting a place smoother for everyone.
In a nutshell, AI in real-estate could be your house-hunting buddy, making it easier to find your dream home and making the whole process more convenient for you and everyone else involved. One fine example of AI technology in real-estate is Trulia. This platform uses AI-driven personalization to provide tailored property recommendations based on individual preferences.
Internet of Things (IoT): Smart Homes and Property Management
In our busy lifestyle, everyone wants to make their home really smart. Not “book-smart,” but “Internet-smart.” This is what IoT (Internet of Things) does, and it’s a big deal in real estate.
IoT connects regular stuff in your home, like your thermostat (the thing that controls the temperature), your door locks, and even your security cameras, to the internet. It’s like giving them a Wi-Fi connection. So, what does this mean?
A study by Nest Labs found that smart thermostats can save up to 15% on cooling and 12% on heating bills.
Well, it means you can control and check on these things from your phone or computer, even if you’re not at home. For example, you can make your home warmer or cooler, lock or unlock your doors, and see what’s happening with your security cameras, all from your phone. It’s like having superpowers for your house!
But it’s not just about making your life more convenient. For people who rent out houses or apartments, like landlords or property managers, IoT devices and property management software (Buildium, Doorloop, Propertyware, etc.) are a goldmine. They can tell them how well the property is doing. For instance, they can see if something needs fixing or if tenants are using too much energy.
And the best part? These smart devices make homes safer, save energy (which is good for the planet and your wallet), and make living in them even more enjoyable. That’s why they’re becoming a must-have in modern homes. So, IoT is like making your home smarter, safer, and more awesome!
Big Data and Analytics: Data-Driven Decision Making
If you are a real estate pro, and you want to be super good at your job. Well, there are some really smart tools you can use, and they’re called “big data” and “analytics.”
Big data means collecting a whole bunch of information, like how much houses cost, who lives in different areas, and how well the economy is doing. It’s like gathering a treasure chest of facts and numbers.
Now, analytics is like having a magical magnifying glass that helps you look closely at all those facts and numbers. It helps you figure out patterns and secrets hidden in the data.
So, what’s the big deal? Well, when you use big data and analytics in real estate, it’s like having a superpower. You can make really smart choices about buying, selling, or investing in properties.
For example:
- You can predict how much a house might be worth in the future. It’s like having a crystal ball for property values!
- You can figure out how much money you might make from renting out a place. This helps you find the best opportunities.
If you are looking for an example them meet Redfin. Its AI tools analyze market data to provide users with accurate home value estimates and personalized property suggestions
So, these tools help real estate pros make really clever decisions by looking at all the facts and numbers. It’s like having a secret weapon for success in the real estate world!
Conclusion
Technology is changing the real estate world a lot, and it’s changing it in really amazing ways.
First, there are these super cool virtual property tours that make it feel like you’re inside a house without even leaving your own home. It’s like magic!
Then, there’s this super secure thing called “blockchain” that makes sure real estate deals are safe and sound. No more worrying about tricks or mistakes!
All these amazing ideas are making real estate easier and better for everyone. It doesn’t matter if you’re buying a house, selling one, investing in properties, or helping others do it as an agent. These technologies are like your trusty sidekicks in the world of real estate.
So, get ready for the future of real estate, where technology is like your best friend, helping you find, buy, and take care of homes. It’s going to be awesome
