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The Latest Trends in Real Estate Tech

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The Latest Trends in Real Estate Tech

Are you interested in making the most of your real estate listing?

 

 

The worldwide value of proptechs is currently $5 billion, and it's predicted to surge across the globe. 

It's safe to say that real estate technology has officially arrived as the disruptor it has been promising for all these years to be. 

The word "proptech" is simply the term used for anything related to property technology. This includes both commercial and residential real estate tech. It's any technology geared towards property management and business. 

It's likely that you've seen words like "proptech" and "CREtech" before. They have been gracing industry media for years, and more frequently in 2019. But it can be hard to sift through all of the news and establish what's an industry disruptor versus what's just hype. 

Here are the latest real estate technology trends you need to know about. 

Real Estate Technology Comes of Age

The real estate industry has been a slow adapter of technology when compared to other industries. In its early days, real estate tech was viewed as a "luxury" or unessential "extra" for companies who were just looking for an edge.

When real estate technology was new, not all of it was as effective as it promised to be. It simply wasn't old or experienced enough for the value to be truly known. But after over a decade of use, proptech has evolved to solve serious problems. 

Real estate technology has evolved and its value has been proven. That could be the reason that, over the past year, we've seen investments and the use of technology in real estate skyrocket. 

Platforms That Serve All Types of Real Estate 

It used to be easy to distinguish different property types. Malls consisted of retailers and condominiums were stand-alone multifamily properties. But the way we define properties has changed.

Mixed-use developments are revolutionizing real estate. Properties that you can live, work, and play in are in high demand. So property managers and building owners need to offer solutions that can serve all of their unique tenants. 

From this need, more solutions that offer a "one-stop-shop" for property managers are becoming more popular. Companies don't want to have to pay 10 different property vendors. Having too many technology solutions can also become more of a problem than a solution. 

How Technology Can Help Solve the Affordable Housing Crisis 

As the affordable housing crisis continues, governments, citizens and entrepreneurs are seeking out new ways to solve the problem. The Washington Post reported that America has a deficit of 7 million affordable rental homes for very low-income renters. So now, the real estate industry is looking at technology. 

A new bread of tech start-ups is aiming to make housing more available and affordable to everyone. Private companies and nonprofits are investing companies who want to create improved housing solutions. 

Some products are focused on making it easier for renters to make their payments and tools to help with down payments. Other solutions focus on making housing more affordable through co-living and rethought building materials.  

The Integration of 5G 

Although the rollout of 5G has been slow, there's no denying that it's coming. Currently, we are in a 4G world, and 5G is the next generation of cellular network technology. Some providers are promising early rollouts of 5G is small areas as early as the end of 2019.

There is still a long way to go. Service providers will have to increase the number of antenna locations across the country to be able to support a society that runs on 5G. But 5G will run hundreds of times faster than 4G.

When it does roll out, having access to 5G will be as essential as WiFi, especially as all of our devices, appliances, self-driving cars and lifestyles become reliant on the cloud. So companies are starting to think about 5G and how it can be implemented in their current and future developments.

Using Technology to Build Experiences and Communities 

Prioritizing experiences has revolutionized our economy. People want to live, work and play in Instagram-worthy spaces. They especially want to engage with places that provide a sense of community that social media and the internet can't provide.

The real estate industry has especially felt the effects of this shift in consumer behavior. One way that real estate companies are establishing this is through technology.

Apartment buildings can offer apps that send residents push notifications that keep the community connected. Apparel retailers can utilize AR-enabled fitting rooms, while cosmetics stores can help shoppers choose the right shades and tones of makeup.

Virtual Home and Property Tours 

High-quality photos and videos were just the beginning of selling properties. More companies that offer 360-degree virtual tours are popping up in real estate. Some of the most cutting-edge businesses even offer virtual and augmented reality-based businesses.

Imagine not only being able to click through photos, but being able to completely submerge yourself into a property no matter where you are located. It's not just a trend, but a significant shift in the way consumers buy and sell real estate. These technologies will only advance as time goes on. 

This type of technology is speeding up the buying and selling process. Brokers are able to solidify more of the "ifs" that make buyers hesitant to jump into a deal. This kind of real estate tech also allows agents to sell properties before they are even built, upping the competitiveness of the industry. 

Relying on Big Data for Faster, More Accurate Reporting and Decision-Making 

As real estate technology becomes more sophisticated, decision-makers want to see the data. Big data encompasses all of the data a company has gathered and stored. This includes transactions, demographics and so much more.

The problem is that while there's so much opportunity to improve and make better choices from this data, many companies lack the resources to sort and analyze it all. But many start-ups have stepped up to fill this need.

There are so many different property management platforms that can process big data and present it in a shareable, digestible way to everyone. These platforms can be accessed in real-time, from any location so property managers, investors, brokers, and even tenants can have the access they need when they need it.

Big data is becoming less of a "luxury" or "bonus" and more of an essential tool that property managers who seriously want to compete have to use. Buyers want to see the data before buying, sellers need to see the data to set goals, tenants want to track success.

Digital Real Estate Auctions and Property Buying

Purchasing a property is a time-consuming process, and investors and entrepreneurs are trying to capitalize on making the system easier. Both residential and commercial real estate has seen an influx of companies offering a new way to buy and sell real estate. 

In commercial real estate, digital auction companies have created a platform that allows you to buy and sell a property without ever having to physically visit it.

Sellers can cut through traditional marketing and access serious buyers in a more reliable process. Buyers can save time on the search, not only by cutting travel time but by only working with eager sellers. Brokers can have yet another way to get their properties exposed to the market and sold. 

Digital MLS listing services were one of the first major forms of proptech to go mainstream. Now, companies are emerging that allow a person to conduct the entire selling and buying process virtually. 

Early Adapters Will Get Ahead 

Proptech solutions are being sought out by all of the industry's key players. Real estate tech has become a global phenomenon, spanning from America to Europe and Asia. The companies who enter the game now will reap the benefits down the road. 

Although this blog post is titled as being about real estate tech "trends," the items listed on this list are more than that. These technology changes aren't just one-off phases that will come and go. This is a pivotal turning point in the real estate industry that's setting the stage for the future.  

Not a fan of the user-uploaded phone photos on traditional real estate listing service websites? We take a more visual approach with 3D tours augmented reality and virtual staging and so much more. We provide an unparalleled home search experience that you won't find anywhere else! 

Are you ready to find your next home? Check out our listings from some of the nation's top agents and brokerages.