The real estate sector is one of those asset classes that have attained maturity. As the industry deals with a tight labor force and continues to adopt practices that will attract new capital to the asset class, implementation of new technologies could be the major game changer.
New technologies will continue to penetrate this industry in greater ways, by enhancing productivity and unlocking capacities, as it has been for the past few years. Whether it is for automation of routine practices, property listings, financial due-diligence, asset security or predictive analysis, innovative platforms will be at the forefront of all positive user experiences and provide a competitive edge to the seller, along with advantages for the buyer. Venture funding has also increased for the real-estate technology industry, rising about 36% each year, since 2011.
Here’s a list of property technologies that will make waves in the coming years.
AI in Property Valuation and Management
Whether it is through voice recognition systems that trigger and control building systems or biometric scanners that provide access to properties, we are gradually becoming comfortable with Artificial Intelligence (AI) tools. So much so, that they seem to now surround us everywhere. Intelligent homes, powered by machine learning algorithms, will help property management tasks. It will automate time consuming jobs like rent collection or screening tenants. Real estate agents will use AI-driven buyer targeting to maximize the speed and breadth of their marketing campaigns. This will lead to them providing more accurate real-estate valuations and find underutilized properties.
Blockchain Technology in Real-Estate
The distributed ledger technology is not limited to cryptocurrencies and tokenization of business models alone. Blockchain-based smart contracts will negate a lot of moving parts in the current property agreements, allowing greater transparency. They will also transform core commercial real-estate operations like financing, leasing or purchasing. Transactions on blockchain can be done in a faster way and with less chances of fraud. Buyers and sellers can record all information pertaining to the transactions in a 100% encrypted block, and no agreements can be altered without the consent of all parties involved. Blockchain technology can counter slow, expensive and opaque system of payment, particularly in cross-border transactions.
3D Tools for Indoor Inspection
Indoor mapping programs like Matterport or WRLD3D can allow a realtor to map a 3D image of the property for sale, for the benefit of offshore buyers. This is a prime example of how technology can enable better relationships between long-distance buyers and sellers. Real estate firms are crafting these 3-dimensional images of properties and providing links on their websites, which potential buyers can access. Homes can be sold faster and consumers can make more informed buying decisions. Matterport plans to introduce VR walkthroughs in the coming years. This use of virtual reality tools to inspect and manage properties will become a $2.6 billion industry by 2025, according to a report by Goldman Sachs.
Drones for Surveillance
Previously thought of as toys or tools for military personnel, drones are now being used to secure even homes. Seller firms are giving 360 degree footage of a house to buyers through drone imaging. Even internal security teams of large premises and residential towers are using them for aerial monitoring of large acres of land.
Can Real-Estate Technology have Downsides?
With the advent of complex technologies, there come newer threats too. For example, AI can provide greater access to consumer preferences and buying behavior, but it also brings in vulnerability in data privacy and protection concerns. IoT driven technologies that control powerful HVAC systems and security access protocols in buildings, can be over-ridden by persistent hackers and bad actors. Therefore, real-estate technologies have to be adopted after careful consideration for security breaches.
Nevertheless, technology will continue to be crucial in optimizing resources and adding value for real estate buyers and sellers.