Artificial Intelligence (AI), along with machine learning, is undoubtedly the future of real estate technology, as it has the potential to transform the way real estate companies operate completely.
According to StartUs Insights, AI-based smart solutions comprised 26% of innovations in 2022. This real estate technology can be used in many facets, such as:
For instance, artificial intelligence algorithms can help agents identify patterns in customer behavior and tailor their marketing campaigns accordingly. Another application is optimizing online ads so that they are better at targeting the right audience. By leveraging AI, agents can gain an edge over their competitors, reach the right people with their message, increase conversions, and provide a more streamlined service for their prospective buyers.Overall, AI has undisputedly been one of the most significant advances in real estate technology trends and is likely to become even more integral in the years to come.
Rex Homes uses AI algorithms that place ads on different channels (e.g., social media, marketplaces) based on target audience metrics, such as purchase history. Their specialists also use programmed robots that can answer almost any question about the real estate object they're showing to potential buyers. As a result, within two years of launch, they closed 231 deals, raised $25.5 million, and reduced brokerage commission to 2% compared to the average of 5-6%.
Immersive technologies allow you to provide prospective clients with an immersive 3D experience of a property, which helps visualize what it would be like to live on sight with the power of virtual or augmented reality. Goldman Sachs estimates that the AR/VR market will reach almost $80 billion by 2025, not the least thanks to the real estate industry.Many real estate companies already give potential customers virtual tours of their houses so that customers can tour several properties from anywhere in the world.Not only do these experiences help potential buyers make more informed decisions, but they also provide a much better customer experience.After all, why waste time visiting properties you're not even sure about when you can take virtual tours from the comfort of your own home? And no matter the weather—be it sunshine or Covid-19.Additionally, builders and architects can use virtual reality (VR) and augmented reality (AR) as smart building technologies to create 3D models of a potential project before committing resources to build it. This allows iterating faster and validating ideas before investing in construction.
Artisan Staged Homes & Room Redesign uses visual staging for empty properties, which allows them to increase the average sales profit by 17% and sell 87% faster.On a different scale, PIXO uses VR training in construction, which helps learn the same material 40-60% faster than in a traditional setting.
Internet of Things (IoT) smart devices can do more than just monitor the physical environment of a building; they can also help monitor activity and protect from unauthorized usage. For example, IoT sensors are used in various systems within buildings to track water pressure and electricity usage. You’ll know if something needs maintenance if any of the indicators are off the charts.In the coming years, IoT devices will also become increasingly intertwined with other aspects of real estate management. For example, this real estate technology can be used to:
All in all, IoT devices are set to revolutionize the real estate market in the coming years. By leveraging this powerful technology, real estate agents can provide a more tailored and efficient service to their clients. This could potentially increase customer satisfaction and loyalty.
CBRE uses IoT sensors—they collect data about building performance, like energy usage—to improve building management and optimize operations. In one case, using such sensors allowed the service to identify HVAC system issues and cut energy costs by 20%. CBRE is also helping Shell reach its goal of reducing 20% greenhouse gas emissions by 2035, thanks to IoT.Building Management Systems (BMS)One of the newer property technology trends is building management systems (BMS). These software tools allow real estate firms to monitor and control the physical environment of a building. This includes property metrics like temperature, humidity, lighting levels, air conditioning, security systems, and more.Such real estate software can also be used to automate certain property management tasks, such as scheduling maintenance work or controlling the flow of people into specific areas.BMS is set to be one of the most important technology trends in real estate, as it can ensure more efficient resource usage and help turn ordinary buildings into smart homes. By automating certain aspects of building management, BMS can save time and money, thus freeing up resources that can be used elsewhere in the organization.Additionally, they allow property managers to monitor the physical environment of residential and commercial buildings in real time, which can help them detect potential issues before they become serious.