Real Estate Technology Trends and Emerging Proptech of 2023
Real Estate Industry Nowadays
One could hardly find a field not touched by cutting-edge technologies. Yet one of the most significant industries like real estate with a global value of over $7 196 billion is currently trying to resist changes due to old practice commitment. However, nowadays it is catching up and has flowered by means of real estate app development, investment in technology and creating new trends and models. Further growth of population leads to increasing demand in the real estate market all over the world and will make it attractive to invest in especially those that use Al and Big Data.
According to researches the biggest part of transactions on the real estate market is made by millennials who prefer searching on the Internet rather than cooperating with agents. As a result, today people who want to buy, sell or rent an apartment have a wide range of opportunities to find the one they’ve dreamed about, even if it is located on the other side of the planet. 2021 NARS (National Association of Realtors) report says that 97% of home buyers used the internet to search for homes. Modern real estate companies should be open to integrate new technologies such as software development to satisfy new and forward-minded customers’ needs.
For example, a new widespread business model implies a platform-mediator between sellers and buyers. Virtual tours will be highly appreciated on these platforms because they provide the opportunity to form certain opinions and exclude unsuitable variants without visiting multiple apartments in different parts of the city. Moreover, ML permits implement automated valuation model and deal with the algorithms to upgrade data processes. All information that customers and business owners need is always up-to-date. In addition to virtual tools, photos, property info, floor plans, contact info, and recently sold properties info are the features of high demand that attract customers according to the 2021 NAR Home Buyer and Seller Generational Trends.
When real estate industry meets blockchain
The real estate industry remains one of the significant parts of the economy worldwide, but what if merge it with blockchain technology?
In the past all operations with selling, buying or renting were accompanied by a huge pile of paperwork that had to be kept for a long time. Thanks to the blockchain transactions transparency this sort of ledgers are to substitute it. Sellers and buyers will benefit from deals with blockchain as smart contracts save time for verification and property acquiring. It also speeds up the process of searching apartments and helps to monitor trends as everyone knows what’s being sold due to transaction publicity. Being a part of automated system blockchain helps to save money on commission.
Blockchain and crypto economy enables people to be investors even with a small amount of money by buying just a part of rental property that was divided up into digital tokens and then were sold all over the world. No matter where you are and how much money you have, you can become 1/30th of a landlord.
Real estate in Metaverse
Digital world has already become a place where we live our “second lives” alongside the real ones, and probably it will go further and grow into a metaverse where we will spend our time as we do in reality: work, learn, visit galleries, have parties and concerts, hang out with our friends.
To be prepared for the future some big companies and superstars have already purchased real estate in virtual reality. It is a big business now and prices are increasing day by day. For example, on April 11 a piece of land on the Decentraland platform was sold for $572,000. From January till March the number of buyers tripled (to 334) with monthly sales exceeded $4 mill.
There are two ways to buy land: directly from platforms themselves or through a third-party resellers’ market. All you need is cryptocurrency and a wallet. Then you can use it for yourself as a place for some project realization such as NTF art gallery or as an idea for future investments. Obviously, it can be risky but no doubt it is a perfectly suitable space to embody some incredible experimental ideas.
The problems agents face and the way to solve it
They say that digitalization in the real estate industry will make agents needless. In PWC report the possibility of reduction of working places is considered due to implementing of fewer work-force. That creates additional challenges for agents in an already highly competitive market. They need to meet client’s requirements, have a sound understanding of changing market and adapt to technology trends. Now it is crucial to create strong online strategy with help of bespoke development to solve problems with the CRM, data security, privacy policies, the Internet of Things, marketing automation and many others.
Real estate companies should have access to property listings to global homebuyers and as a consequence easily deal with Big Data and Artificial Intelligence algorithms.Speaking of the software. Based on its experience, Magora enables real estate agencies to provide effective work with constant monitoring of the situation on the real estate market, and maintenance of all incoming and outgoing requests. Relying on the extensive experience Magora helps to save money and time by automatizing everyday operations, provide historical financial data in a transparent and convenient way and unite all useful operations in one app.