By: Emma Miller
The real estate industry has always been quite static while facing its own set of challenges and obstacles. However, technological innovations will reshape every industry eventually, real estate included.
With the emergence of the newest technological advancements and tech-savvy millennials who are now the largest consumer base, the real estate industry is starting to evolve and it’s facing some beneficial changes.
The millennial crowd is setting new trends that are affecting real estate industry, while technology is helping move things along. Compared to only a few years back, real estate is definitely not what it once was. The industry is now embracing the digital world and the advantages it brings. Here are a few trends and innovations in the real estate industry.
As technology progresses each year, the real estate industry can no longer rely on just traditional methods to promote properties or meet the expectations of its newest customers. By relocating their business to the digital world, real estate agents not only expand their opportunities, but are also able to reach a broad audience over the internet and reach markets far beyond their local area. Furthermore, 71% of millennials are interested in acquiring a property and real estate agents need to adapt to this needy consumer base.
Millennials have the highest consumer expectations among all other generations and they’re interested in more than just buying a property. They want to know if the place they want to settle down in has other amenities and possibilities, such as shopping areas, food provisions, walking areas and employment opportunities. That’s why agents have to use big data in order to provide personalized offers based on the clients’ preferences and provide detailed descriptions alongside future area developments.
Virtual reality (VR) technology has been advancing for some years now. Even though many thought that this tech will be used primarily in the gaming industry, it has found its way into the real estate as well. Real estate agents and brokers discovered the benefits of using VR when showcasing properties and it has become quite a popular trend. VR allows agents to display properties in a virtual simulation created by accurate property data.
This eliminates the need for scheduling appointments and having to be physically present for the tour of the property. Potential clients can examine properties from their own homes using only a VR headset. Aside from being able to showcase a single property to a great number of people online at the same time, VR tours expand the reach to international markets as well. That way, foreign clients can view properties in other countries without having to travel there for personal inspection.
This innovation became fairly popular in the business world, but it has also influenced the real estate industry. Investors saw crowdfunding as a means of investing in real estate ventures of their own choosing, while eliminating the need for a middleman in the process. Investors can now avoid the risks of indirect investments and connect with project managers that suit them best.
On the other hand, thanks to modern technology and online connections, contractors can easily obtain a construction bond to ensure investor’s interest, while guaranteeing that the project will be completed in accordance with regulations. Crowdfunding potential has already begun to reshape the real estate industry and the trend itself may evolve over time. Contractors are able to run crowdfunding campaigns on their websites and secure investments basically with only a few clicks of a mouse. In addition, the capital for a crowdfunding project is increasing and it’s estimated to reach $8.2 billion by 2020.
The progress of AI technology and machine learning has also reached real estate agents. Real estate agents and brokers are overwhelmed with paperwork, responsibilities and administrative tasks. Moreover, they have to satisfy millennials’ demands and meet their high expectations as well. This entire process takes a lot of time and funds to complete accordingly.
AI technology allows agents and brokers to assess and analyze documentation with speed and efficiency, while extracting essential data and information from tons of paperwork. This shortens the manual process of going through documentation to provide relevant information. In addition, AI technology helps investors make important decisions about construction and housing development.
As mentioned before, millennials are quite tech-savvy and they enjoy the benefits of modern technology. The real estate industry closely follows the trend of offering smart homes for purchase or rent to millennial customers. Millennials spend a lot of time online and homes that include smart devices, such as the Internet of Things (IoT), smart appliances, lighting and so on are quite appealing to them.
Real estate agents tend to provide these household items to satisfy their client’s needs when showcasing properties. As a matter of fact, the continuous connectivity that millennials prefer has made a smart home industry quite popular, so much that it’s estimated that the industry will reach $121.73 billion by 2020.
Millennials bring significant change to real estate industry with their high expectations and demands. However, these new demands alongside technological innovations are positively influencing the industry. Nowadays, the real estate is facing beneficial changes and more significant growth than ever before.
By Emma Miller
About the author
Emma Miller is a marketer and a writer from Sydney. Her focuses are digital marketing, social media, start-ups and latest trends. She’s a contributor at Bizzmark blog.