Technology Trends for Real Estate in 2023
The real estate industry is one of the few industries most reluctant to embrace technological disruption due to its mode of operation. A lot of its activities require human interactions, either virtually or physically.
Despite this, the industry has seen a considerable amount of technology adoption. The internet, for instance, has made it easier, more than ever, for homeowners to purchase sellers home warranty.
A sellers’ home warranty offers essential coverage while your home is on the market. It provides financial protection in case any appliances or system breaks down in the home before the sale is finalized.
Technology Trends for Real Estate in 2023
More emerging technologies are expected to improve the industry. Below are the five trends you can expect to see in 2023.
Except you are Mark Cuban, who reportedly bought a $13 million 24,000-square-foot French chateau-style mansion without inspecting it, you will want to see a property you are purchasing physically before making payment.
Metaverse is a disruptive technology expected to change real estate property inspections and listing in 2023 and beyond.
It encompasses the functionality of Virtual Reality (VR) and Augmented Reality (AR) to create a three-dimensional image or environment of a real-world setting virtually.
With this technology, home sellers can update their properties for homebuyers to inspect virtually, check all available features, shop for mortgages, and other things they might need.
A 2022 study by McKinsey revealed that 60 percent of consumers are excited about the transition of activities like shopping and dating to the metaverse.
The Metaverse in Real Estate market in 2021 was valued at $821.9 million and is projected to increase to $5.95 billion by 2028.
- Internet of Things (IoT)
Millennials, people aged 27 to 42 in 2023, are the largest number of homebuyers in 2022. This generation also has a more positive view of how technology affects their lives than any other generation.
In a survey conducted by Pew Research, nearly 100% of Millennials say they use the internet.
This set of buyers is more interested in optimized homes. The Internet of Things (IoT) is the interconnection of everyday objects and gadgets via the internet.
This technology, for instance, allows you to switch off your home appliances and bulbs from your smartphone.
It can also help the manager of a business building to optimize space usage and reduce traffic on the property.
- Big data
Big data includes using large or complex data sets to deduce insights on a subject and assess the best option to leverage.
Data availability is one of the problems most developers and investors complain about. They want the availability of data to harness it for quick and actionable insight. This is a problem big data can solve.
Big data can be used to analyze complex data sets to get insights into market conditions and buyers’ behavior and predict trends and opportunities.
Real estate websites can also use big data to personalize customers’ experiences, such as recommending the most suitable properties, deals, and warranties.
It can also help investors to mitigate financial risks by avoiding bad investments based on the information gathered with extensive data analysis.
Insurance companies will also be able to provide the right insurance for prospective buyers and homeowners.
Proptech, also called property technology include dedicated tools that make the trading and maintenance of real estate seamless. It is simply an alignment between real estate and technology.
These sets of tools are used for both residential and commercial properties. They save property managers and agents from loads of paperwork and make the closing of deals instant.
Fractional ownership powered by Proptech is a trend that is expected to continue t0 grow in 2023 and beyond. This allows a pool of funds to invest in a pre-leased property, and the contributors become fractional owners.
However, this is not a new concept in the industry, considering that, over the years, real estate investment trusts (REITs), for instance, operated similarly.
Nevertheless, technology makes it easier for more investors to participate as borders or social circles do not limit it.
Artificial Intelligence, Drones, and Other high-tech devices
Artificial intelligence (AI) involves empowering a computer or computer-controlled device to perform tasks that normally require human intelligence.
Computers powered with artificial intelligence can gather data and interpret the collected data for instant insights and recommendations.
AI chatbots connect property buyers and sellers at any time of the day faster and simultaneously.
Drones are used to capture aerial views of properties, including inaccessible areas. This can be used to keep better records of the property, whether as a photograph or video.
Software like CRM has also helped real estate agents, lenders, property managers, and investors automate many day-to-day responsibilities, offering them more time to attend to other essential things.