Future Technologies: Real Estate (Prop Tech)
The housing market continues to flourish with the world population projected to reach 9.8 billion by 2050 from 7.6 billion. The expected population increase will mean demand in the housing market will continue to increase. The average first-time buyer in the UK is 34 years old due to renting being popular among millennials as house prices continue to increase. The huge demand in real estate gives homebuilders, agents and buyers to use technologies to their advantage to build, sell or buy the perfect home. This blog will highlight a few technological trends that will have an impact on the real estate sector.
Blockchain
Blockchain technology has a big association with cryptocurrency however; the technology could have an application in the real estate market. Blockchain technology enables the property buying/renting process to be more secure, transparent and efficient. Blockchain technology offers smart contracts that bring transactions between buyers and sellers together. These transactions are stored transparent ledger with transaction history and documents such as property titles stored securely on the blockchain.
Virtual and Augmented Reality
Virtual and augmented reality technology has been trending for a while as the technology continues to develop. Virtual property tours have enabled potential buyers to view properties anyway in the world. Virtual reality provides the perfect platform for homebuilders to display their vision to potential buyers and investors. Virtual reality will allow a user to see the lighting conditions of the property throughout the day. Additional features such as removing walls or customising the interior can further enhance the buying experience before the property is purchased.
Augmented reality can superimpose images and create realistic imagery to help customers understand the property. Stores such as Amazon and Ikea use augmented reality to allow customers to virtually place furniture in the room before purchase. Property developers can get a user to scan a QR code and the property appears in front of them allowing them to see a 3D floorplan of their future property. The user can view a basic floorplan, and add in walls or environmentally features such as the outside view.
Artificial Intelligence (AI)
Using A can refine in real-time as customers view properties. As the customer browses, AI is learning the customers' preferences and what they are looking for and can display other properties matching their preferences. AI technology can make the customers' property buying experience more pleasant and less stressful.
AI can provide valuable insight using historical data. AI can identify trends in the property market, customer interactions and buying history to provide realistic predictions. By using these realistic predictions; homebuilders and agents can instantly adjust their content to meet demand.
Big Data
Big data analytics is a growing property trend. Agents can use real estate market-related data to identify suitable properties for investments. This data can range from rental incomes in the area, location, access to schools and workplaces, flooding data, air quality, and many more data points. By having a large amount of data available to provide personalised services, agents can maintain lasting relationships and improve overall business performance.
Internet of Things (IoT)
Smart homes and devices are changing the way we live in many ways. IoT refers to the practice of embedding sensors and computing technologies into various items with which we interact every day. Smart devices can help property managers to control heating, ventilation air conditioning, lighting, fire, and building security.
Smart devices can be integrated into services like home cleaning and package delivery. For example, sensors on the floor can identify a wet floor and action a robot to mop the clean to avoid anyone slipping over. Packages can be taken and delivered into the apartment even if the homeowner is away. Smart homes can be programmed to cut down energy usage such as turning the heating on when you are at home and automatically turning off lights when you leave the house.
Personalisation
Property hunting can be a long process and with many homes available on market; consumers can find it difficult to have the right property for them. Real estate websites can help the process by provide a tailored viewing experience for the consumer such as display homes that are similar to the properties they have been viewing. By providing a tailored experience, the stress of property searching can be reduced and speed up the search process and enable the moving in process to happen faster.