According to research by ResearchAndMarkets.com, the global real estate market is forecasted to grow from US$2687.35 billion in 2020 to US$3717.03 billion in 2025 at a compounded annual growth rate (CAGR) of 8% . A major part of this growth will be attributed to the technological advancements surrounding real estate.
Groundbreaking technologies in the real estate industry already are changing how people look for, buy and sell, and invest in properties. In this blog we talk about the 7 most recent real estate technology trends that will rule 2022 (and beyond).
But first let us understand what exactly is real estate technology and is it the same as PropTech.
What is real estate technology?
Real estate technology, or PropTech (which comes from the words property and technology), comprises various information technology solutions involved in the growth of real estate software. It basically means the different cutting-edge software, tools and applications deployed in the real estate industry.
Now, let’s get into the 7 latest trends in PropTech that are expected to disrupt the real estate industry in 2022.
7 Disruptive Real Estate Technology PropTech Trends of 2022
1. 3 Dimensional Virtual Property Tours
This is one of the most fascinating real estate technology trends to look forward to in 2022. Real estate technology is expected to become so sophisticated that buyers will be able to visit apartments, houses and properties virtually while in the process of selecting. This exciting trend will eliminate the time as well as expense of visiting multiple real estate properties.
Buyers will be able to eliminate several properties from their list of potential purchases via virtual viewing. Yes, buyers would want to still physically tour the property they love the most before signing the deal. 3D virtual tours still takes out a huge amount of time (buyer’s and the agent’s) and significantly cuts down on the decision making decision.
2. Blockchain intervention in real estate technology
With time, how buyers and sellers in the real estate industry make transactions has changed drastically. And now, with blockchain technology, transactions can be made more transparently, securely, and most importantly, without middlemen.
Blockchain technology enables agents and other real estate professionals to create ‘smart contracts’ by digitizing information (on ‘blocks’) and storing the information in secure ‘chains’ (which is public but fully encrypted).
This real estate technology trend is also used for verification of the encrypted transactions and making sure there’s no tampering in the financial records. After the transactions are verified by the network, the information and digital signatures of the parties involved are recorded and given an identification code before storing it across all the computers in the network.
3. Fractional real estate investment
Thanks to exceptional developments in real estate technology, real estate enthusiasts can also become fractional owners of properties they’re interested in. To simplify, fractional ownership of real estate means a percentage ownership in any asset. All of this is possible through blockchain. This type of ownership is commonly seen when investing in expensive items, like vacation homes or aircrafts.
The skyrocketing real estate property rates are out of the league of many buyers. With fractional real estate investment, individuals would be able to deposit on a future 100% purchase. As for communal investors, they can enjoy shared rental income from the shared properties. It also enables a diversified investment portfolio.
4. AI & chat bots as a real estate technology trend
In a world where people are bombarded with information, their attention span is decreasing. And so is their level of patience. People expect replies to their queries within minutes. To have an upper hand and competitive edge, these questions need to be answered as immediately as possible. Thanks to artificial intelligence and chat box, this is more than possible.
Virtual assistants and chat bots answer real estate inquiries and FAQs of buyers when you’re not available to do so. It also asks the buyers (or ‘leads’) all relevant questions so that you’re prepared beforehand. These AI-powered chat bots should be made available 24/7, the response time must be minimized, and the rate of error should be negligible.
There are many chat box, workflow and lead management software out there that help you in managing your leads. One of them is LeadSquare. You can check out details about LeadSquare here.
5. NFTs as a real estate technology trend
Non Fungible Tokens (NFTs) have been in the news for a while now. NFTs are nothing but cryptographic tokens representing unique items and their digital ownership certificate. It is essentially a way for digital artists to certify a file they’ve created something original, and is in fact not a copy.
When it comes to the real estate technology trends and subsequent industry, there are companies that allow buyers to invest in real estate via NFTs. These PropTech companies source real estate and offer them as investment opportunities. They usually issue a number of tokens that can be purchased. These tokens are usually low cost and anyone can invest.
6. Big data & predictive analytics
Netflix uses big data and predictive analytics in its algorithm to make viewers relevant content recommendations. Amazon uses the same to suggest related products to shoppers. Similarly, predictive analytics and big data will be used in PropTech and real estate technology.
We’re using our smartphones and gadgets almost all the time. This generates a lot of data. When all this accumulated data is analyzed, predictive analytics helps in identifying patterns in user behavior.
In PropTech trends, this technology will be used to find houses and properties that check all boxes of search criteria of buyers. It will help realtors and agents optimize this search to show their clients properties that’ll fit their needs.
7. Rental management software
With more people moving away from their hometowns and rural areas in search of jobs, interest in rental properties is increasing. To cope with the growing demand of rental activity, rental management software is here as a savior. These software help in saving loads of time by automating a massive number of tasks that once had to be done manually.
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Featured Image: Sale photo created by xb100 – www.freepik.com
ResearchAndMarkets (2021) “Real Estate Global Market Report 2021: COVID-19 Impact and Recovery to 2030” [Online] Available from: https://www.researchandmarkets.com/reports/5238001/real-estate-global-market-report-2021-covid-19?utm_source=CI&utm_medium=PressRelease&utm_code=wkfv6x&utm_campaign=1512416+-+Global+Real+Estate+Market+Report+2021%3a+Market+is+Expected+to+Grow+from+%242687.35+Billion+in+2020+to+%243717.03+Billion+in+2025+-+Forecast+to+2030&utm_exec=chdo54prd [Accessed December 2021]