Technology has changed the way we do business, the way we communicate with others, and the way we live our lives completely over the last decade, and real estate technology is no exception to this rule. In fact, new technologies in real estate are being adopted by top-tier firms at a rapid pace. But what’s next? Here are 5 of the hottest real estate technology trends you need to know about in 2022.
Artificial intelligence
In the next few years, AI will become more prevalent in the real estate industry as a whole. This technology can help with things like lead generation, market analysis, and even predicting pricing trends. Realtors who are early adopters of AI will have a leg up on the competition. Even now, though, they’re still working out the kinks- some people find it off-putting when they’re shown houses that may not be within their budget or don’t meet their desired criteria.
But some argue that this could make house hunting much easier for buyers because it’ll take care of all the initial legwork. With the increased prevalence of AI, sellers will also see benefits- especially those who use virtual reality tours and 3D modeling to show their properties. It’s estimated that around 75% of all properties worldwide will have an online presence by 2025, meaning the majority of homes will eventually be available online.
In addition, technological advances will allow agents to set appointments remotely with prospective buyers while they’re away from home instead of meeting them in person. And VR tours will provide clients with immersive experiences before they ever step foot inside a property. But as with any new technology, there are drawbacks- while convenience is great, it’s possible that scheduling conflicts might arise if both the buyer and seller have limited availability.
Some agencies have already started testing out chatbots to supplement services like live chat or answering basic questions about listings. As long as everything is transparent and there’s a high level of trust between parties, this should work well for everyone involved.
Chatbots can provide access to information 24/7, so it eliminates the need for human assistance when needed most. For instance, during holiday season, realtors would no longer need to put in extra hours during evenings and weekends since chats can be answered at any time. However, some worry that it could result in less personal service for buyers.
On the other hand, one argument for this technology is that it reduces costs and staffing needs, freeing up time and money for other parts of the business. Regardless of which side you come down on, these tech developments will have major implications over the next decade as they play out in real life scenarios.
How AI is used in real estate
In real estate, AI is used for a variety of tasks, including generating leads, analyzing market trends, and providing personalized recommendations. Additionally, AI can help automate repetitive tasks such as scheduling appointments and sending follow-up emails.
By 2025, it’s estimated that AI will be responsible for generating $1.2 trillion in value for the global economy. It will also have an impact on the workforce. About 7% of jobs are at risk due to automation, with machine learning algorithms making it possible for companies to use fewer workers.
While some positions are more vulnerable than others, one thing is certain: there will be massive changes in the next decade. For example, according to CBRE research from 2022, the average time it takes a property to sell has decreased from 113 days in 2020 to just 76 days.
What does this mean? We’re going through another wave of real estate tech innovation that could bring disruption not only in how we buy or sell property but also how we experience them.
And given today’s tight housing inventory, prospective buyers will need every edge they can get.
Companies like Curbed offer potential homebuyers 3D virtual tours where users can click around to see different angles of the property. The technology offers viewers additional ways to explore without visiting in person, which might cut down on driving costs and traffic congestion too. Â
What new real estate technologies do you think will emerge in 2022? One exciting development is artificial intelligence that can personalize marketing messages based on past behavior and interests. The idea is to tailor communications so customers don’t feel bombarded by ads, while simultaneously increasing effectiveness of advertising efforts.
Once these tailored ads are better understood by consumers, data scientists should be able to identify patterns that indicate when someone may be ready to make a purchase decision. Smart predictions about what people want before they know themselves—perhaps our favorite type of technological advancement!
AI is already being utilized to present highly targeted ad campaigns, targeting keywords such as renters looking for their first place or moving up from their starter home. But rather than treating them as just numbers or demographic statistics, AI can understand each customer on a personal level. Someday soon the best advertisements will speak directly to us using our own words, offering promotions designed especially for us.
Internet of Things
One of the biggest real estate technology trends that you need to be aware of is the internet of things. The internet of things refers to the interconnectedness of physical objects and devices that are embedded with sensors, software, and other technologies.
This trend has the potential to revolutionize the way we live and work, and it’s already starting to make its presence felt in the real estate industry. For example, some companies are developing smart home systems that allow homeowners to control their homes remotely via a mobile app.
Homeowners can now turn lights on or off from their phone or watch, set up rules for when different doors should automatically lock or unlock based on what time of day it is, and receive alerts if anything in the house gets out of whack while they’re away.
In addition to automating common tasks at home, these systems have huge implications for property management too: landlords can monitor which doors are locked and unlocked without having to go out into the hallway every time someone enters or leaves the building.
They can also see who was in the office at any given time, what rooms were rented out during a given period of time, and how many hours people worked during a given shift. All this information means managers no longer have to rely solely on anecdotal reports about what went on during the course of their shifts; instead they have data collected through IoT technology.
It’s easy to imagine even more ways that this could affect the property management industry, especially as newer developments like AI enter the picture. The sheer amount of possibilities makes the internet of things one of the most exciting real estate technology trends happening right now.
Virtual and augmented reality
Virtual reality (VR) and augmented reality (AR) are two of the most talked-about technologies in the real estate industry today. While VR has been around for a while, AR is just starting to make its way into the mainstream. In 2022, expect this trend to continue as more companies develop ways to integrate these platforms with their business models.
One example of an AR development in real estate: Mattel announced plans last year to use Apple’s ARKit platform and the True Depth camera on its forthcoming Hello Barbie so that children can have face-to-face conversations with their favorite toy. Similarly, Airbnb launched a new feature that lets guests virtually walk through a space before they book it, which will also be available to hosts looking to showcase their listing on the site.
For those who aren’t able to visit a property in person, AR may provide them with all they need—at least until we’re all living inside our own holodeck! Expect to see more integration between AR and other areas of the real estate industry. If you’re wondering how long virtual reality will stay relevant, one word: social media.
The more time people spend in virtual worlds like Second Life or Azeroth, the less time they’ll spend walking down city streets or shopping at physical stores; not only does this increase online sales but there’s evidence suggesting VR increases creativity among those immersed in it too. With Facebook’s Oculus Rift headset launching soon, 2020 could be the year VR goes mainstream.
Smart homes: Just like smart phones made smartphones a household name, smart homes will do the same for IoT devices by integrating them into every part of homeowners’ lives. We’ll likely see increased demand for home automation systems that allow occupants to control various aspects of their house from afar using voice commands or from different parts of the world using WiFi connections.
Sensors that measure things like energy usage, temperature levels, air quality, and even ambient noise levels will help homeowners monitor things within their home remotely. These sensors will detect when something needs attention and alert residents via email or text message. As sensor technology continues to improve, expect smarter systems to become commonplace in houses around the world. Even your furniture might start coming alive!
Blockchain
1. Blockchain is a distributed database that allows for secure, transparent and tamper-proof transactions.
2. The real estate industry is starting to explore how blockchain can be used to streamline the buying and selling process, as well as create a more secure system for tracking ownership and land registry.
3. One of the advantages of using blockchain is that it could help reduce fraud in the real estate industry. For example, if a piece of property is sold, the transaction details are registered on the blockchain’s shared ledger so that anyone who needs proof of ownership can find it there.
4. Another benefit of this technology is that all data on the ledger has been verified by nodes – these are computers connected to the network with software verifying and storing information – which means an entire network must agree before changes are made.
5. Additionally, any potential buyer can verify a home purchase contract by examining its chain of title on the blockchain. With this level of transparency and security, brokers may no longer need to spend time double checking paperwork or chasing down lost documents. It will also allow sellers to sell their homes without having to worry about falsified records since they can provide proof of ownership through the blockchain.
As more people become aware of this technology, we should expect it to be implemented into other industries like insurance, accounting and retail.
Apps & social media
In real estate, it’s all about location, location, location. But with the rise of GPS and other location-based technology, that’s starting to change. Now, you can find properties based on your specific needs and wants, whether it’s proximity to schools or public transportation. And with the rise of social media, you can get an inside look at a property before you even step foot inside. Sites like Houzz allow potential buyers to upload photos from their home and see what others think of it.
Real estate is changing, but this doesn’t mean the industry will ever go away. From apps and social media, to smart devices that make our lives easier, new innovations are shaping how we buy and sell homes. As these trends continue to evolve over time, savvy agents will be able to utilize them for maximum profit–and benefit their clients as well. For example, some buyers may be willing to forego living close to work if they know they’ll save money on gas by driving less each day. Agents should encourage clients to explore new neighborhoods so they’re aware of what else is out there–and might come knocking on their door!
The influence of social media
In recent years, social media has had a profound impact on the real estate industry. Platforms like Facebook, Twitter, and Instagram have given rise to a new breed of real estate agent who is tech-savvy and able to connect with potential buyers and sellers online.
Millennials now comprise the largest generation in America and they are very active on social media. It’s likely that their presence will only grow as they start families and buy homes of their own. As younger people come into the housing market, it will become increasingly important for technology companies to understand how to meet their needs. For example, one survey found that 41% of millennials prefer texting over talking on the phone.
That trend is significant because there may be generational differences when it comes to interacting with an agent via text versus speaking in person. The same survey found that 82% of millennials want their agents to send them listings based on what they search for rather than asking them what they’re looking for.
Younger people also want their agents to answer texts quickly (within 2 hours) or within 30 minutes if possible. However, older generations still make up more than half of all homebuyers. Many of these buyers are accustomed to working with an agent face-to-face and might not be willing to adopt newer technologies. As a result, many firms need to figure out how to appeal to both groups at once.
One idea is to give agents assistants so they can focus on customers who want personal service while handing off simple tasks such as taking photos and answering simple questions to someone else. Another option is using virtual reality tools like Google Homesight that let people see a property without having to go through the hassle of scheduling an appointment or driving around town. These tools may seem gimmicky at first but they could eventually change the way we look at buying property entirely.
An exciting future for real estate
The future of real estate is looking very exciting. We are on the cusp of some major changes that will impact the way we buy, sell, and invest in property. Here are five important trends you need to know about:
1) There’s a massive global housing shortage – it’s estimated that there is a lack of 54 million homes globally which means many people will be turning their attention to renting and smaller properties.
2) Augmented Reality (AR) – this technology has now become more affordable and accessible with companies like Google developing apps like Measure which can provide 3D measurements of rooms without ever having to step foot inside them! With AR developments coming thick and fast over the next few years, we should start to see some really useful applications for buyers as well as sellers.
3) Home Automation – this technology has been around for a while but it is becoming much cheaper thanks to innovations in mobile technologies such as Amazon Echo or Apple HomeKit. Not only does automation make your home easier to live in but it also means potential buyers can see what smart features your home offers before they come round for an inspection or viewing.
4) Blockchain – Blockchain technology is quickly emerging as one of the most promising solutions to combatting fraud in all aspects of business including real estate. It is considered by many experts to be more secure than traditional banking systems.
5) Artificial Intelligence (AI) – AI will play a huge role in making life easier and less stressful for everyone from homeowners to renters, both those looking for somewhere new to live or someone looking for someone who wants their old place back. For example, imagine if an AI-powered chatbot could find a perfect tenant for your spare room within 24 hours. While these kind of advancements might not happen overnight, it will be interesting to see how quickly things evolve in the next decade.
