Among the world’s most inventive businesses is the real estate sector. It innovates and changes continuously to stay ahead of a market that is changing.
It can be challenging for businesses, though, to keep up with all of these changes and still achieve their major goals. Continue reading to gain some understanding of how trends in digital transformation will impact your business in the upcoming years! These are the top 18 trends that will affect real estate in the future. Make sure your business stays on the cutting edge of technology in 2023 by paying close attention.
- Summary of real estate industry
- What is proptech?
- 17 Real Estate Trends To Watch Out In 2024
- Adapting to digital transformation trends in real estate
Summary of real estate industry
Before we try to answer the question, “What is proptech?” As per a study from Statista, by the end of 2024, the Real Estate market will be worth $637.7 Trillion.
Surprisingly, the real estate sector is still one of those least impacted by digital transformation, highlighting the vast potential for automation. Amid all of this, proptech has emerged as a major player, gaining ground swiftly and offering untapped opportunities in the real estate industry.
What is proptech?
Property technology, or proptech, is a catch-all term for a group of digital technologies designed to streamline and enhance many aspects of the real estate industry. It changed everything about how we buy, sell, and manage real estate. It was a game-changer.
Actually, proptech real estate solutions address every stage of a property’s lifecycle, such as:
- Design and construction;
- Technical equipment;
- Financial assessment;
- Management (buying, selling, leasing, renovating, etc.);
According to Future Market Insights, proptech is anticipated to develop at a notable compound annual growth rate (CAGR) of 9.3% between 2023 and 2033. Cash equivalents are projected to expand from $19.6 billion in 2023 to $47.8 billion in 2033. This suggests that more companies will soon provide innovative products and services to improve the efficiency, transparency, and user experience of real estate administration and transactions.
17 Real Estate Trends To Watch Out In 2024
1. Data analytics as a vital instrument for investments and real estate transactions
Real estate organizations currently employ data analytics to find data and information about properties, find possible buyers and sellers, create digital marketing campaigns, and set listing pricing.
Digital analytics will continue to grow in 2023 as a result of artificial intelligence (AI), with an emphasis on predictive analysis that enables investors to make decisions more quickly based on their preferences.
Businesses will benefit from artificial intelligence by having access to more information that will enable them to better serve their clients. For example, machine learning algorithms are able to process large amounts of data and offer insights into customer behavior patterns that realtors and other businesses may utilize to offer customized solutions and services.
It is anticipated that this digital trend will positively affect every industry, and the real estate sector will not be immune to this change.
2. Anticipating client needs via anticipatory design
By 2023, anticipatory design is a digital technique that might gain popularity. It can be applied to anticipate client requirements and hyper-personalize their interaction with a company (by suggesting goods or services they might find interesting, for example).
Other industries like travel, cars, and entertainment have already noticed this digital trend. By 2023, it will quickly become the new standard in real estate. Applications that employ machine learning to forecast what consumers want from their homes based on variables like age, family life, professional aspirations, and so forth are already under development.
3. Omnichannel engagement is the new normal
With the rise of AI and automation, omnichannel interaction is soon becoming the standard for many businesses and their clients. Realtors and businesses can communicate with several individuals at once with omnichannel interaction, regardless of the medium they utilize.
Customers will interact with your business across a variety of digital platforms (such as websites, social media, and mobile applications), and they will anticipate that any real estate properties they are interested in will be accessible on each of these channels as well.
They ought to be able to retrieve all the information and assets they want from any device at any time with just one internet search.
4. Growing use of eSignatures
One electronic signature trend to watch is the usage of eSignature. Digital signatures eliminate the need for paper contracts and save time by doing away with tedious paperwork processing stages required to close real estate transactions because they are legally binding. In addition, it makes document signing simpler than before and offers borrowers greater control over document management.
Going forward, intelligent workflows including eSignatures—like sequential and parallel document signing—will be the standard, simplifying the signature process everywhere.
5. Digital travel utilization in real estate
Real estate strategies have begun to heavily rely on digital journeys, with developers utilizing features like online walkthroughs and 3D views from all angles to improve the end-user experience.
Millennials are not accustomed to bureaucracy, so companies can benefit from digital transformation by replacing cumbersome paperwork in real estate with interactive digital experiences.
It is believed that during real estate transactions, clients fill out numerous paperwork for an average of 6.5 hours. Real estate agents will save time and have a far better client experience if that number is decreased.
Real estate organizations will find it easier to manage documents like deed transfers entirely online with the use of digital signatures, even while other forms, like property lease agreements, may still require manual completion.
Digital journeys can be used to enhance a number of real estate processes, including:
- Data capture for contracting
- Scheduling and following up on appointments
- Contracts and Signatures
- Document management
- Loan applications and processing
By 2023, digital journeys will significantly affect the entire user experience for real estate firms. In actuality, digital journeys are crucial components of the digital experience that facilitate corporate transactions and raise customer satisfaction.
6. Construction management using technology
The process of construction management can be difficult and time-consuming, particularly for big projects like the building of shopping centers or other infrastructure.
The construction sector is expected to undergo a significant transition in 2023 due to the scarcity of raw materials and the increasing adoption of digital technology.
Digital technologies like artificial intelligence (AI) and the internet of things (IoT) will be crucial in this regard. Construction managers may save time and money by integrating digital and traditional tools, such as RFID tags, to track progress in real-time and minimize the need for human inspections. This will guarantee that projects are completed on time and within budget!
7. By 2025, virtual reality (VR) will play a major role in real estate transactions.
Realtors are searching for new digital platforms that can be used to efficiently sell real estate projects and properties as the field of digital marketing gets more and more competitive.
As more people of all ages become aware of virtual reality (VR) and augmented reality (AR) by 2023, experts predict that tools like VR tours and AR visualizations will be in high demand among real estate agents looking to outperform their rivals.
In the real estate sector, digitalization is quite advantageous, particularly for online property sales. In the upcoming years, this digital trend is expected to gain traction and assist realtors in providing prospective purchasers with a virtual tour of their property, eliminating the need for them to physically visit the property.
The Financial Times reports that from 2012 to 2015, almost 20% of residences were sold in this manner; by 2023, that percentage is predicted to rise to 30%. Typically, luxury real estate is digitalized first, with the remainder of the market adopting a linear approach.
Digital Reality Benefits in real estate include those for buyers, sellers, and realtors. Virtual reality not only allows prospective tenants or buyers to take a “digital walkthrough” of properties, but technology also has the ability to streamline real estate transactions by eliminating geographical restrictions.
8. Real-time monitoring of all real estate transactions
Due to a lack of technology integration across multiple departments, including finance and operations, realtors have found it challenging to stay on top of every transaction occurring in different cities or countries at any given time, despite the recent technological advancements.
The good news is that, as cloud-based applications continue to gain traction, realtors will have global access to real-time market trends, client information, and sales leads by the end of 2023. Because it gives them precise insights into the sector, this improved openness in real estate transactions will also benefit customer experience and brand reputation.
Digital platforms that are data-driven would provide more than just a means of connecting buyers and merchants. For instance, they can assist businesses in gaining insightful knowledge about consumer preferences and market situations so that, with the use of data analytics, they can create goods and services that meet those needs. It is anticipated that this digital trend will positively affect every industry, and the real estate sector will not be immune to this change.
9. Crowdfunding is a new way to raise money for real estate projects
In the real estate sector, crowdfunding is expected to become extremely popular as companies look for new and creative ways to raise capital. With the ability to reserve their preferred houses in advance, this digital trend will help them not only raise money but also draw in prospective buyers.
10. Blockchain in real estate to secure transactions and enhance transparency
Because blockchain technology lowers the likelihood of fraud and disputes—which can be among the most difficult problems facing businesses in this sector—it has the potential to create a “paradigm shift”in the manner that real estate deals are carried out.
This digital trend can make transactions more transparent and safe while guaranteeing quick clearance/approval processes for all involved parties, which has the potential to disrupt a number of areas, including property registration, title deeds, and house rentals.
Implementing blockchain technology could lower real estate transaction costs by over 50%, according to an Accenture study, which would cause a massive upsurge in positive disruption in the industry.
11. Using digital engagement techniques to provide a tailored consumer experience
By the end of 2023, digital marketers will be able to use digital engagement techniques like chatbots—which provide instantaneous answers to inquiries about goods and services—to develop individualized client experiences.
By doing this, they will be able to access private data, such as browser history and social media activity, without disclosing their online identity, which will improve the effectiveness of their communication with you.
12. Intelligent chatbots for more efficient communication in real estate
With the help of intelligent chatbots, businesses can now automate communication and help customers with many elements of the real estate industry, including organizing appointments, finding the ideal property, handling finances, and more.
These chatbots in real estate can assist with:
- use the available data to make more precise forecasts about market movements and prices.
- enhancing client interactions by providing tailored answers to questions, etc.
- utilizing blockchain to securely conduct financial activities such as deposits, payments, and sales and rentals.
It is crucial to remember that the digital trends listed above are only a small sample of the many options that real estate companies will soon have access to.
13. Rethinking the function of agents and brokers Data-crunching in the digital age
In the real estate business, brokers and agents invest a great deal of effort in finding properties and assisting in closing agreements that they then pass along to their clients.This consumes 40–45% of their time, which can be greatly decreased by using data-crunching technologies to locate properties or bargains that meet the needs of the customer.
14. Biometrics in real estate to streamline customer verification processes
In order to buy, sell, or rent property, biometric technology offers quick and extremely precise solutions for customer identification and verification.
The most popular uses of this technology are for facial recognition, fingerprint and iris scanning, among other things. These methods are quick and easy ways to verify someone’s identification.
Nonetheless, the biometric sector is still in its infancy, so by 2023, adoption among real estate firms could not be all that common.
15. NFT applications in real estate
Obtaining and maintaining title documents is one of the biggest problems real estate companies have. Tracking down this information can be challenging, and it can get even more confusing if there are several records for a single property.
With the use of non-fungible tokens (NFTs) in real estate, this is anticipated to alter since it will be simpler to track title documents because each token is distinct and cannot be reproduced.
Additionally, since NFTs virtually eliminate the possibility of fraud or disputes, businesses might use them to handle records and lease agreements for properties.
Given the obvious advantages for real estate organizations, NFT applications in the real estate sector are probably going to become widely used in the next three to five years.
16. Getting ready for no-code real estate in the digital age
Customer experience is the main focus of real estate, and digital tools can significantly improve this experience by giving clients greater transparency and individualized attention.
These digital tools include chatbots, augmented and virtual reality apps, and more. They can give users more information about properties, guide them through the full sales process, and make recommendations based on their interests, among other things.
In addition to guaranteeing increased client happiness, real estate firms can leverage these digital tools to obtain insightful data about the market and enhance their services accordingly.
17. Getting ready for no-code real estate in the digital age
Dynamic web apps can be swiftly and effectively created with no-code solutions, which are made especially for non-technical business users.
Real estate firms anticipate using no-code technology to create smart dashboards by 2023, which will enable them to obtain important insights about internet leads, revenue, and other metrics.
By offering comprehensive information about properties, renting or purchasing homes, etc., businesses can also use these tools to improve the customer experience.
Because they allow business users without technical expertise to create customized applications from scratch, no-code application development platforms are expected to play a significant role in the real estate sector for the following five years.
Adapting to digital transformation trends in real estate
Digital technology is going to change the real estate market. Companies that embrace these technologies early on have a higher chance of making a name for themselves in the market because of the push toward digitalization. Assist your organization in staying ahead of the curve by implementing new digital trends as soon as possible.
Companies must follow these trends in order to remain relevant as the real estate sector continues to adjust to the digital era. Ten ways that the digital transition will affect real estate in the future are listed below. Moreover, if you are looking for a company that can help you create a PropTech software, then you should checkout Appic Softwares. We have an experienced team of Proptech developers that assist you.
So, what are you waiting for?