The 8 Most Important Real Estate Technology Trends in 2022

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The real estate sector is one of the most competitive industries in the world. Yet, it is also one of the most lucrative, having much growth potential.

According to PWC’s Global Outlook, in 2021, the global real estate sales volumes exceeded the 2020 total by 59% and the previous 2019 peak by 22%.

Real estate agents use the most advanced technologies to get an edge over their competition and provide a better customer experience, including VR headsets, drones, 3D modeling tools, AI, and many more.

In this article, we will discuss key real estate technology trends that are shaping the industry.

What Is PropTech?

PropTech is a sector that applies technology to real estate to improve efficiencies and create new opportunities.

This new type of real estate technology changes the way we buy, sell, and rent properties. PropTech is not just about the buildings. It is about the people and how they live.

PropTech companies use technology to improve existing processes and services. These companies are on the rise now because they provide solutions that are tailored to today’s needs and demands, such as:

• flexible renting periods;
• more choices for accommodation;
• lower prices than hotels, etc.

An excellent example of a PropTech company is Airbnb. It is a platform where people can rent their homes, apartments, or rooms to other people who are looking for accommodation during their stay in a certain city or country.

Technologies That Are Revolutionizing the Real Estate Industry

The real estate industry is one of the oldest industries in the world. Now, it is undergoing a revolution with the introduction of new technologies. Below, we’ll look at some of the tech innovations that are transforming the industry.

Enhanced Data Management – Increased Virtualization

Data is the lifeblood of any business and real estate in particular. It has become a key factor in making decisions that impact the future of a business.

However, there are many challenges to data management and storage, as well as data analysis and decision-making.

For example, data management is often done through spreadsheets or PowerPoint presentations. This causes errors and can be very time-consuming.

Luckily, new digital solutions and software offer enhanced data management for real estate companies.

These innovative tools help review large files for real estate research and provide access to quality-checking data and information on the driving factors behind trends.

For example, Deloitte developed a real estate data framework that shows the impact of future trends on the industry and can be used for investing, budgeting and planning.

Source: Real Estate Predictions 2022

Advanced Analytics – IoT Data Collection & Analysis

Advanced analytics uses various techniques to extract insights from IoT data, which are impossible with traditional analytics. These techniques include machine learning, predictive modeling, statistical and graph analysis.

The Internet of Things (IoT) is a system that connects the Internet with physical devices. It’s not just about smart devices but also sensors, actuators, and other types of hardware that can be connected to the Internet.

There are many ways how to collect IoT data from physical objects. Some examples include:

• High-frequency sensors can collect data in large quantities for short periods.
• Low-frequency sensors collect less data but for longer periods.
• Proximity sensors detect nearby objects or people and report their location.
• GPS receivers track a device’s location using satellites.
• RFID readers read radio frequency identification tags attached to products or livestock.
• Accelerometers measure acceleration on an object (such as a phone).

Growth in Home Automation – Remote Accessibility

Home automation has become the need of the hour as IoT has made it possible for consumers to control their home appliances from anywhere. The market for smart home technology is predicted to grow to over $176 billion by 2026.

Source: Global Smart Home Devices Market Report 2022

Families are increasingly moving towards remote access and control of their homes worldwide. As of now, 50% of households in the US have at least one smart home device. The need for connected smart home systems is expected to reach 53.9% by 2023.

Augmented Reality Opportunities for Buyers and Sellers

Augmented reality (AI) is an interactive experience of a real-world environment, where the objects that reside in the real world are “augmented” by computer-generated perceptual information. Augmented reality adds virtual elements to what we see, hear and touch in the world around us.

Also, AR is increasingly used by real estate agencies for marketing their properties. Property virtual tours are the most common form used in real estate marketing.

More Affordable Tech Solutions for Agents – Reducing Costs

Agents increasingly rely on technology to help them manage their day-to-day operations. This includes everything from scheduling appointments to managing paperwork, researching properties, and communicating with clients and other agents.

The idea of a “digital agent” is not new. Digital agents are becoming more affordable for small businesses and individuals who want to save money by eliminating expensive office space, staff salaries, and other costs associated with running an agency.

There are many technology solutions that can be used for this purpose. Some of the most popular ones include:

• Mobile apps for agents allow them to do a variety of tasks using their phones, such as taking photos, sending emails, and accessing records.
• CRM systems help agents keep track of all their contacts, leads, and prospects in one place.
• Virtual assistants help with time-consuming tasks such as filing paperwork or scheduling appointments.

That said, real estate businesses don’t have to run a tech company to get the innovative solution they want. Instead, they can hire a dedicated software development team to build a product from scratch and design it for the business and its needs.

For example, Sloboda Studio has been building software for the real estate industry, including marketplaces, management systems, and CRMs, for the last 5 years.

The company can help uncover real estate market gaps, analyze business goals and competitive information to develop a tech solution with all the core web and mobile features.

If the project needs scaling, the company’s developers will extend the product by adding new functionality.

Increased Telecommuting Opportunities for Agents – Less Commutes

The use of telecommuting has been increasing in the past few years. This is not just for companies that need to cut costs or for employees who want to spend more time with their families. It is also a great way for agents to spend less time commuting and focus on work of higher value or communicating with clients.

Telecommuting also provides agents with more flexibility and control over how they work. Some agents prefer to work from home in the morning and then go into the office in the afternoon, while others want to work from home all day long.

VR and Overlay Technologies – Enhancing Customer Experience

VR and overlay technologies are the next big thing in the customer experience industry. Customers are excited about these new technologies and can’t wait to see what is coming next.

Virtual reality (VR) is a computer-generated simulation of a three-dimensional image or environment that can be interacted with in a seemingly real or physical way when a person uses special electronic equipment like a headset.

VR offers an immersive experience that allows users to get up close and personal with properties before they buy them. VR has been effective in increasing conversion rates as it gives users a first-hand experience of what it would be like to live in these properties.

Overlay technologies are also a hot topic in the customer experience industry. These technologies allow customers to interact with products on their smartphones by overlaying them in their real-world environment as if they were in front of them.

This way, customers don’t have to buy something before knowing what it looks like or how it works. They can just try it out first using VR and overlay technologies.

Conclusion

The future looks bright for professionals working in the real estate industry. This sector has been at the forefront of adopting new technologies which have led to an increase in transparency, efficiency, and customer satisfaction.

Now, it is time to recognize the need for the newest real estate technology and coordinate existing processes accordingly, making them a part of all real estate processes.

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