People are not entirely reliant anymore upon traditional property buying or investing approaches. With technology taking over the industry, proptech or property technology is now taking over. Real estate firms in all domains are now investing in various technology solutions to help offer better-optimized services to their customers.
Construction, buying, renting, selling or management of properties is now dealt with using various technologies.
In this article, you will learn about the technologies in which the real estate sector is investing the most in this era and their benefits.
1. Big Data & Analytics
Earlier, real estate firms were keen on making decisions based on retrospective data and intuition. But today, companies are investing in big data and analytics to determine futuristic real estate decisions. Real estate firms are investing more aggressively in utilizing big data and analytics, as it helps mitigate the risks. The obtained data can be analyzed to determine the age or condition of a property and the amount of renovation or redesigns it would need.
Hence, this will eventually minimize the decisions made from intuitions, and the risk factors will suppress the investors or buyers. Moreover, real estate firms are not blindly projecting the target audience anymore. They can now use big data to track the target audience and predict their behaviour.
As a result, they can cater to the needs of potential buyers, making it easy for the agents to pitch the properties. Luxury property developers mostly use it to find customers looking out for exceptional features. Apart from that, investing in big data brings some more benefits to real estate firms, which include:
- Pricing a property through real-time analysis based on the region.
- Forecasting the price fluctuations in the future.
- Helps in developing proper marketing and selling strategies based on data insights.
- Smoothens the overall workflow process of real estate companies by suggesting profitable projects for investment.
2. Augmented Reality (AR) and Virtual Reality (VR)
In the era of proptech or property technology, one of the best investments of the real estate industry is in VR and AR implementations. The proptech startups are now making it easier for the end-consumers to search and explore a property.
With AR & VR technology, property search and visit are now convenient and exciting. The properties that people had to visit physically in the past are now accessible at their fingertips. Real estate proptech startups directly provide virtual tours for customers to explore their favourite apartments or property from the comfort of their homes.
As per a report by NAR (National Association of Realtors), 46% of home buyers found virtual tours more useful. Hence, it means home buyers are leveraging the proptech integrations at a high rate.
With AR, the companies are superimposing the images to create a perfectly realistic architectural appeal. It helps the customers understand the in & out of a property, even before the construction is completed. On the other hand, VR solutions help the customers get a virtual tour of the property to get a lifelike experience. Hence, making informed decisions becomes easy!
Some of the added benefits of investing in AR/VR technologies for the real estate industry are:
- Helps speed up the real estate transaction process.
- Provides a clear representation of the product to customers to assist them in making a decision.
- Global reach increases for real estate developers, who can now reach out to potential buyers, irrespective of geographical barriers.
- AR/VR technology offers increased ROI to firms as the costs of staging or prototyping a property are saved.
3. Internet of Things (IoT)
Real estate developers, in the quest of utilizing proptech solutions, are now using IoT to enable unparalleled comfort and convenience for customers. IoT being integrated into home devices will consist of smart sensors. With this, the property owners or managers will get a predictive maintenance alert describing the root problem.
Hence, the maintenance aspects will be executed at the earliest, before any problem aggravates to worsen the situation. It is possible because IoT will activate a computer monitoring system for the HVAC and lighting systems. The owners will be saved from significant repair expenses.
Due to these smart measures, many home buyers and real estate investors are interested in modern proptech-integrated properties. Moreover, real estate developers are investing in IoT for their properties to promote energy efficiency for the customers, which will help them save money on utility bills.
Some of the other associated benefits of IoT for the real estate industry are:
- IoT-embedded devices help properties with incident management by mitigating the risks associated with fire, burglary, flood and other such situations.
- IoT implementation optimizes the use of resources on the property and alerts the maintenance needs for appliances, which helps reduce the adverse environmental impact.
Conclusion
This is a clear understanding of how real estate invests in modern technologies to change how developers and home buyers interacted in the past. It is evidently working well for both consumers and developers, with a substantial increase in property transactions.
Among such major proptech platforms, Blox acts as the bridge between home buyers and property developers/sellers. Depending on your preferences, it helps you explore the property virtually or book a physical site visit. Just like any other proptech platform. Blox intends to deliver an outstanding home-buying experience.
