Eazy Tips: Proptech Trends Making An Impact In Real Estate
- August 4, 2021
Property technology (also known as PropTech, and real estate technology) is the application of information technology and platform economics to real estate markets. Every industry evolves with technology over time and real estate is not an exception. Although it might have taken a while for the real estate niche to adopt proptech, the industry has finally recognized its impact. There are several proptech trends making some noise in real estate. They have revolutionized the way we buy, sell and interact with our properties and promise even more groundbreaking impact.
1. Artificial Intelligence
Artificial Intelligence has significantly optimized the decision-making process with regards to asset identification and selection. AI platforms use algorithms and machine learning to process big-data sets to identify correlations, patterns, and relationships across a broad spectrum of parameters and variables. Currently, some property search sites rely on simple preferences like location and size to display properties for sale; in the near future, however, AI may enable these sites to recommend properties based on preferences, personality traits, and values.
Chatbots on these search sites may be able to answer consumer questions quickly and easily. AI will also be able to help predict pricing trends more accurately. This type of technology would look at historical trends in the market for an area, but might also take into account crime, schools, transportation, and marketplace activity in the area. It may also make the buying experience faster and easier. Startups are already creating ways to digitize the entire homebuying experience — no more reams of paper to read and sign at closing.
Who would have ever thought that drones had the potential to change the real estate market? Digital, multi-perspective site visits are now possible, creating emotional storytelling around a particular property. They provide relatively easy and budget-friendly aerial photography that would have been incredibly expensive just a few years ago. They’re especially useful for displaying bigger homes and properties, giving a real feel for the size of a place.
Drones can also be used to provide a tour of the area. For new buildings, a drone can capture the feel of a new neighborhood. It could also help people considering a move to a new town or neighborhood get a feel for the place before visiting. They also spot potential risks or maintenance problems, which could lower the price of a property or be used in negotiations.
3. Big Data
The real estate and property management industries are uniquely positioned to benefit from big data. Websites like Zillow, and Redfin have disrupted the real estate industry using the power of big data. These companies are able to compile and sometimes collect data on buying and selling trends in a specific area, traffic, demographic information, consumer survey results, and more. They analyze and collate that data to offer insights on pricing, home-value trends, and potential value in certain neighborhoods.
4. Virtual Reality
Realtors can create virtual reality tours of properties that potential buyers can experience from the comfort of their own homes — or to help long-distance buyers virtually tour properties they can’t physically visit. For new buildings, virtual reality can create realistic architectural images and walkthroughs to help buyers understand and experience the property — even before construction begins. And for property managers, creating a virtual reality tour of the space might help new tenants get acquainted with their space, not to mention that it is also a safe and health-conscious way to tour a property due to the Covid 19 Pandemic
With the recent discovery of the Delta variant of Covid 19, it is advisable to visit properties virtually. In this process, a video conference is scheduled between the stakeholder and the buyer, and all questions are answered related to the property and a virtual tour is provided. Virtual property tours provide a realistic reflection of the actual look and feel of the subject property. In real estate it has often been the case that the investor/buyer feels the quality of the property did not match their expectation – rather than depending on one’s imagination, individuals can now opt for virtual tours!
It is important that property and real estate professionals not ignore technological innovations but rather adapt and grow with them because PropTech trends are just the beginning of the wave of improvements and innovation to come in real estate.