The real estate sector is one of the most thriving businesses all around the world. Just about every sector is undergoing a change because of technological advancements, the real estate sector is no different. Part of its improvement and progression has naturally derived from technological developments. Technology has become a catalyst for changes in all areas of business and industry. Here in this article, we will examine how technology shapes the real estate sector.
What are the current problems in the real estate sector?
The problems experienced by the real estate sector today may include;
- Data deficiencies of the buyers and sellers caused by inadequate communication
- Nontransparent purchase and sell process
- Fatigue of the buyers and sellers in the property sales process
- Waste of time due to these deficiencies
The solutions to these problems are already in the sector. Whether you’re comfortable adapting or not, technology is continually advancing forcing us all to adjust these solutions. While millennials are keener to learn, older generations tend to resist the process of real estate evolution. They have to admit that ”the old-fashioned way to file or show customers around the house in person” will not work soon. Now, every step of the real estate process is touched by technology.
What are the technological developments which boost and facilitate the real estate sector?
The technological developments which boost and facilitate the real estate sector are as follows;
- Drone Usage
- Virtual Tour Technology
- Artificial Intelligence
- Internet of Things
- Mobile Notifications
- Online Marketing
- Blockchain
Drone Usage
Drone technology allows filming and shooting in more difficult places and indoors. The images taken by the drones are used not only for detailed photos of the building and surrounding areas, but also by civil engineers and developers to provide detailed information to tenants to monitor the progress of projects. Drones are now providing footage that real estate has had a difficult time obtaining. While elevated photography has been doable using airplanes and helicopters, it was costly. Drones make elevated imagery both possible and affordable.
Virtual Tour Technology
The solution of this process which is extremely exhausting for customers who do not want to spend the whole Saturday or Sunday wandering house to house is implicit in virtual tour technology. Thanks to VR technology, the customer will be able to easily visit the projects without leaving home. The customers will be able to reach every detail they want with a 360-degree view!
Artificial Intelligence
AI is transforming many industries including real estate. When customers enter real estate or consultancy sites such as Projescope, they will be able to find the most suitable project for them thanks to AI. AI will direct them according to their demand. As an example, we can show OCR (optical character recognition) technology to scan documents before commercial real estate transactions and to complete financial audits and reviews. AI also can be used for accurate prediction of market trends.
Internet of Things
IoT refers to the number of physical devices that are connected to the internet, all collecting and sharing data. With the more adoption of smart technologies, the more buildings provide smart lighting, heating and cooling systems, security and other automated services. This will make it easier for tenants to control operating costs; property managers respond quickly to maintenance and repair requests thanks to IoT technology.
Mobile Notifications
When a customer visits a project, the check-in with the smart device he uses will provide much convenience for real estate consultants. Thus, real estate consultants will see which clients visit which projects or which rooms are visited more and will be able to make improvements accordingly. Reports will be prepared for customer satisfaction.
Online Marketing
Not only is technology shaping the way agents sell housing projects, but it’s also shaping the way agents and consultants sell themselves! Online advertising and marketing are much easier and more efficient. When websites are mobile-friendly, it’s effortless to get your browser in a customer’s hand. Consequently, clients expect increased access to their agents and consultants. Agents and consultants can not afford to be careless with their communication. Agents who do not respond promptly online will end up losing their potential customers in this day and age.
Blockchain
Blockchain technology is a software program that is defined as a distributed database that provides encrypted transaction tracking and is preferred especially by financial institutions. This technology is used for time and effort-consuming transactions such as buying land or real estate, leasing, signing contracts and obtaining real estate loans, making the difficult and lengthy process shorter and easier for both property sellers and buyers. It aims to make real estate and land transactions fast, transparent and secure by using smart contracts.
Does technology negatively affect real estate?
While technology has created turbulence in many industries, it has begun to have very fundamentally shocking consequences, such as less resorting to agents in the real estate sector. However, this is just a prediction. Provided that there are no new changes, the need for real estate companies might decrease. This will take a long time. Technology is likely to continue to change business relationships.
Technology will certainly open the doors wide for access to more information. On the other hand, real estate firms, real estate brokers and consultants have to keep up with this pace and constantly establish a more sensitive relationship with their customers. This war of real estate brokers and consultants against search engines and bots will be very tough. Technology continues to change many things in many industries. But real estate firms do not have to be one of them! By adapting to technology, you can prevent the technology from completely defeating you and getting ahead of you.
The other point is there may be a decrease in the need for people with digitalization. Can robots or AI completely replace humans in the real estate industry? We do not think this is possible as real estate technology can never replace a human being. Yes, the above-mentioned advantages are very beneficial and convenient. The possibilities and opportunities for technology in real estate are virtually endless! All of this information might be thrilling and intimidating to real estate professionals. It is quite possible to obtain maximum benefit from technology with the proper use for the near future.
