Although the real estate sector has been traditionally slower to adopt new technology and trends, today, technology is an integral part of the industry, changing the way we manage our properties. Between 2015 to 2019, the technology adoption within the industry soared with a growth of 1072%. The growth continued despite the pandemic, and going into 2022, the strong momentum is expected to continue as the real estate companies align their operations with the end-users. Although there are several PropTech trends worth mentioning, in this article, we will only be looking at the most influential ones that will profoundly impact real estate businesses.
Management of workforce using ERP software tools
Today. The technology is not just used for managing real estate; its scope has extended to managing employees within real estate organizations. Companies worldwide are leveraging modern innovations to make strategic decisions and boost their outcomes. In the post-pandemic environment, where remote working has become the new norm for almost every industry, PropTech is proving to be critical to connecting the workforce with management teams. Real estate organizations are leveraging efficient monitoring & management software and ERP systems to streamline different departments and divisions in their offices and enhance employee experience.
Big Data for better decision making
The real estate sector can use big data to make more data-driven decisions. Companies like Redfin and Trulia are helping real estate companies to get meaningful insights from enormous data on different locations, demographic information, consumer survey results, traffic, and more. Empowered by such insights, real estate companies can predict the potential value in particular neighborhoods, pricing, and home-value trends. Another area where big data is significant in the real estate sector is proactive maintenance. For real estate managers, maintenance costs are a considerable expense. Using real-time and historical information about all kinds of building systems, like utilities, telecommunications, HVAC, etc., they can become proactive with their repair and maintenance schedule and take necessary measures before the crisis hits.
AI and machine learning to make data more actionable
Search engines generally rely on simple preferences, such as size and location, when displaying properties for sale. With the help of artificial intelligence, search engines will soon be able to recommend properties based on several preferences, including values and personality traits.
In 2022, more real estate businesses will be leveraging AI-powered Chatbots to answer consumer questions quickly and easily. By analyzing vast amounts of real estate data, including historical data, availability of facilities, crime rate, and marketplace activities, AI will also predict pricing trends for different areas more accurately.
Real estate companies will also be leveraging AI to see how properties perform in the future. This will allow them to choose which markets to focus on.
PropTech for tackling sustainability challenges
With the growing interest of residents and investors in sustainability and carbon footprints, sustainability will be a significant theme in the PropTech trends for 2022.
On average, The real estate sector consumes about 40% of all raw materials worldwide, 40% of global energy, and 30% of carbon emissions. For this reason, figuring out ways to tackle sustainability challenges is critical. Construction technology can provide feasible solutions to tackle the sustainability challenges at the development stage. Modular construction – which limits on-site disruption and pollution, is one way to handle sustainability challenges. Another way is to make sensible building materials, architectural tools, and site management choices.
Building Information Modeling (BIM) technologies can be used to study a future building’s impact, allowing real estate companies to make necessary design-stage changes with sustainability in mind.
Virtual and augmented reality
Many home buyers search for properties on the internet first, and the pandemic has accelerated this trend. In the foreseeable future, Virtual reality and augmented reality can help make the home buying experience even more accessible and exciting.
Homebuyers can enjoy virtual reality tours of properties from the comfort of their own homes, enhancing the online buying experience. Realtors can take this experience a notch higher by virtually staging properties and digitally adding accessories and home decor elements to interior photos.
Virtual AR and VR walkthroughs of spaces can help buyers understand and experience the property — even before construction begins.
Tenants can also use this technology to get acquainted with their space and understand how to use different features of their homes.
Blockchain is changing the way for the real estate sector by offering a new means for buyers and sellers to connect. This technology allows us to trade assets like stocks by tokenizing real property. Blockchain technology cuts out the intermediaries, resulting in buyers and sellers getting more out of their money. Another benefit of this revolutionary technology is that it is decentralized, allowing buyers and sellers to have more confidence in conducting transactions. There are several other ways blockchain technology can revolutionize the real estate sector in the coming years.
[For more information read: How Blockchain Technology has Revolutionized the Real Estate Sector]
Drones for effective real estate marketing
The importance of drone technology is growing in various areas of our lives. Its significance is increasing in the real estate sector, addressing the industry’s biggest concerns while providing novel ways to accelerate its growth. Drones in real estate have ushered several benefits, including:
- High-Quality Drone Cameras can capture detailed images across all angles, serving as a contemporary means of real estate marketing.
- High-quality visuals from different angles can spark curiosity and interest in many people.
- The aerial shots taken by drone cameras can highlight more property features and provide a unique perspective.
Due to social distancing requirements and other restrictions, the popularity of drone tours has picked up after the pandemic. This trend is expected to reign in the coming years as it gives people the convenience to experience a property from the comforts of their homes.
These trends represent the new wave of improvements and changes occurring in the very conservative real estate industry. As a result, they are attracting lots of attention from investors, entrepreneurs, and officeholders. With increased awareness from various segments, PropTech solutions will grow stronger and become more mainstream in the coming years.