Top Technology Trends in Real Estate
The real estate industry has undergone a significant digital transformation in the last few years. As a result, PropTech startups are now leveraging new emerging technologies, positively impacting the industry.
The real estate area is in dire need of transformation with the introduction of disruptive technology such as Artificial Intelligence (AI), Virtual Reality (VR), Augmented Reality (AR), Big Data & Analytics, and the Internet of Things (IoT) and 3D Engines. These technology trends in real estate offer a wealth of opportunities for developers, real estate agents, and customers, from automated rental platforms to immersive “wayfinding.”
Real estate tech is widely used for two primary reasons – to improve the client-tenant experience across the property lifecycle and make informed investment and property management decisions. For instance, virtual tours are now highly in demand and integrated into leasing and buying platforms.
Real estate companies are now embracing new technologies to simplify processes, optimize customer experiences and gain a competitive edge in service.
Our experience as real estate technology experts has enabled us to predict the top trends that will shape the industry in the future.
10 Tech Trends in Real Estate
Real estate technology is continuously evolving, and 2023 is expected to bring innovative changes to the industry. This article highlights the top seven real estate technology trends shaping the industry in 2023.
1. Buying and Selling Websites
With online platforms becoming the primary source for finding properties, there is a rush to develop real estate websites to aid agents and agencies. In addition, automated property technologies have greatly benefited consumers and real estate professionals. As a result, customers use online websites as their first source of property searching and information.
2. Real Estate Management Software
This software allows property owners to manage their properties and customers online, with accounting, reporting, tenant screening, and insurance policy monitoring features. In addition, it saves time and money by utilizing computer programs for management.
3. Virtual Reality
The technology of virtual reality (VR) is becoming increasingly popular among real estate tech trends. In 2023, VR and augmented reality (AR) will enter the mass property market, allowing customers to explore properties through 3D virtual tours.
4. Digital Twins
It is possible to create a 3D digital property model using data from IoT and sensors, providing information about the building’s features, environmental conditions, and fire evacuation plans. Already, cities in the US are building digital models of themselves, such as Las Vegas.
5. Property Value Estimation using AI and ML Technologies
Statistical models, machine learning, and big data are used to evaluate property value, which leads to better real estate deals.
6. Real Estate CRM Software
This software helps manage the real estate business by tracking emails and leads, managing contracts, and keeping tabs on progress made with potential leads.
7. Digital Transaction Management
This is a crucial trend in property technology that demands attention. To save time for buyers and agents, it is recommended to develop a solution that eliminates paperwork and allows electronic signatures of documents. This will enable parties to the transaction to access the contracts from anywhere in the world on any device.
8. Conversational AI
Real estate software customers now expect 24/7 availability, fast response times, and close to zero error rates. A service desk with conversation AI can easily fulfill these requirements. These assistants are built for purpose, have a rich set of capabilities, and can be integrated into the end-to-end process landscape of the enterprise.
Through tokenization and intelligent contracting, blockchain will bring security, clarity, and efficiency to real estate transactions. Tokenization enables customers from different locations and incomes to participate in the investment process. For example, property owners can sell a portion of their property. Smart contracting speeds up the process of verification, property search, and acquisition.
10. Analytics and Big data management
With data playing a crucial role in decision-making and the absence of a centralized national system for agents, there is ample opportunity for startups to revolutionize the existing process. Therefore, the present moment is an ideal time to introduce a groundbreaking solution in this field. You could develop an application that can analyze a vast amount of data and offer essential insights required by stakeholders in the real estate market. For instance, your solution might indicate the credibility of a developer and the quality of their constructions.
Other real estate technology trends for 2023 include big data, mobile apps, real estate crowdfunding platforms, fractional property investment, drones, and other high-tech devices and real estate innovation.
Technology’s Boon for the Industry:
1. Simplifying Commercial Real Estate Valuation
Companies like Zillow, Redfin, and other leaders have transformed the real estate industry. However, the $16 trillion U.S. commercial real estate market is still adopting new technologies. Companies are now replacing the traditionally lengthy and expensive appraisal process with powerful technology to enable faster and wiser decisions.
For example, an AI-powered commercial real estate platform empowers investors with data-driven insights and offers quick valuations. With Machine Learning, the valuations are refined based on feedback from verified property owners. As a result, the AI technology boasts valuations with a 98% accuracy rate in the actual sale price.
2. Streamlining Leasing Processes
Companies like RentTango offer one of the best digital leasing platforms, razor-focused on closing deals. With centralized and simplified marketing and leasing, the company ensures renters a secure and enjoyable leasing experience.
Owners of rental properties can now manage them remotely and get access to local services like inspections and rental showings. In addition, features like listing syndication, tenant screening, CRM, contract management, digital signatures, payments, reporting and more are now streamlining leasing like never before.
3. Embracing Commercial Property Lease & Agreement Analysis Software
Commercial property intelligence maximizes revenue, reduces risk, and drives better decision-making. It allows users to simply upload, process, and extract critical documents like purchase and sale contracts, leases, insurance binders, etc. Technology helps to read, classify, and categorize documents. Commercial real estate companies can accelerate their transaction process with higher confidence levels.
Professionals using AI-powered document intelligence software can simultaneously ask questions across all lease agreements. It offers radical transparency within a few clicks. For Mohr Partners, a leading commercial real estate company in Texas, this data-driven approach and business intelligence are the keys to success.
4. Leveraging Real Estate Property Intelligence Platforms
Property intelligence platforms enable users to access, leverage and use property information to make property-centric decisions. They empower real estate companies, investors, and asset managers to identify the value of properties, enable proactive portfolio risk management and equip stakeholders with real estate market data and insights.
A property intelligence platform can instantly deliver intel on over 110 million properties nationwide with a level of detail that would, in other cases, require an on-site inspection. The reduced need for property inspection, accurate pricing at underwriting and renewal, and the ability to mitigate risks by proactively conducting repairs has made property intelligence an asset in real estate.
5. Boosting Real Estate Property Management Software Innovations
There are many documentation and compliance aspects that owners, agents, and tenants have to deal with in a real estate transaction. Today, cloud-based CRM platforms help firms and agents keep track of their clients and deals and ensure all related documentation is secure. The platforms are easily accessible, so information and data are available on the go.
The Property as a Service (PaaS) platforms offer a customer-focused approach and create a dedicated line of communication between owners and tenants. Companies like OJO Labs and Realtor.com offer end-to-end platforms with AI and ML to simplify property management with innovative software solutions.
Every industry is disrupted by technology at some point in time. This market is undergoing a paradigm shift due to innovations and emerging technologies in real estate that are reshaping the buying, selling, and leasing processes. Digicode has always believed in the power of technology, and we’re excited to see its impact on the market, customers, and clients. As a frontrunner in technology, we are constantly changing, evolving, and growing to make way for new commercial real estate technology trends and technologies that simplify life.
Future Outlook of Technology in Real Estate
The future outlook of technology in the real estate industry is extremely promising, with many anticipated IT trends in real estate that will significantly impact how business is conducted. One of the most important software development trends in real estate is the increasing use of artificial intelligence (AI) and machine learning (ML) to improve decision-making processes. AI and ML will be used to analyze large amounts of data to provide valuable insights into market trends, property values, and investment opportunities.
Another trend likely to shape the future of real estate technology and industry is the rise of virtual and augmented reality. 3D engine technologies will allow you to move from passive viewing in 3D tours to active interaction with the environment, as in a computer game. Investors and buyers will be able not only to see their future yet-to-be-built house and walk around it but also to furnish the interior and “virtually live” in it.
These technologies will enable buyers and investors to tour properties remotely, saving time and reducing the need for in-person visits. This will be especially important for international investors, who may not have the time or resources to travel to the properties they are interested in.
Digital transaction management is also expected to impact the real estate industry significantly. Buyers and agents value their time. By removing paperwork and enabling electronic signatures, transactions can be completed more quickly and efficiently. In addition, this will enable parties to complete transactions from anywhere in the world using any device.
Opportunities for innovation and growth in this industry are vast. Real estate startup and established companies can leverage new technologies to create innovative solutions that will disrupt the traditional real estate industry. These innovations may include platforms for fractional ownership, digital real estate marketplaces, and blockchain-based property transactions.
In conclusion, the future of technology in the real estate industry is bright, with many anticipated real estate IT trends that will revolutionize how business is conducted. Tech and real estate will become strongly interconnected. By embracing these trends and leveraging new technologies, companies in the real estate industry can position themselves for growth and success in the years ahead.
Digicode is a tech modernization and custom software development company based in Dallas, Texas. For over 13+ years, we have delivered world-class results in developing tech applications and server platforms aided by our professional objectivity, flexible engagement models, and bespoke solutions.
Are you looking for custom real estate software development? View dozens of successful projects in our portfolio, including mobile app and website for a real estate. With our solution-oriented approach, deep understanding of the business goals, and unique operating processes, we truly- understand customers’ needs and help them discover and advantages of open source software.
What is artificial intelligence (AI), and how can it improve real estate services?
AI is the simulation of human intelligence in machines that can perform tasks like learning, reasoning, and problem-solving. AI can improve real estate services by automating repetitive tasks, analyzing large amounts of data, and providing personalized recommendations to clients.
What is smart home technology, and how is it changing the real estate market?
Smart home technology allows homeowners to control various aspects of their home remotely, such as lighting, temperature, and security systems. It’s changing the real estate market by increasing demand for homes with these features and improving property management efficiency and convenience.
How does 5G technology impact the real estate industry?
5G technology provides faster and more reliable internet connectivity, essential for smart home technology and other connected devices. It also enables virtual and augmented reality applications that enhance property viewing experiences, marketing, and property management.
What are the main challenges of implementing technology in the real estate industry?
The main challenges of implementing technology in the real estate industry include high costs, lack of standardization, resistance to change, and data privacy and security concerns. However, overcoming these challenges can result in increased efficiency, productivity, and profitability for real estate businesses.