Big data have transformed the real estate industry by compiling and collecting data on the buying and selling trends in a specific area, traffic, demographic information, and consumer survey results
Fremont, CA: The real estate sector has been slow to adopt new trends while other industries have gone through technological disruptions in a relatively short time, but this is changing, thanks to proptech, which is transforming the way we buy, sell, and interact with properties.
Following are six trends, which real estate professionals and managers can follow to maximize their profit.
Internet of Things
The Internet of Things (IoT) are smart devices and appliances digitally connected to the cloud that continually sends and receives information. It can alert owners or property managers of potential problems, allow for predictive maintenance and also help with energy efficiency, which helps in cost saving for the homebuyer or property owner.
With the growth of IoT, it will pave the way for big data and AI and machine learning to create even more insights and improvements.
Virtual and Augmented Reality
Almost half of all potential homebuyers search for properties on the internet first, as per a survey conducted by the National Association of Realtors. The integration of virtual reality and augmented reality will make the online search and property buying experience more exciting and accessible.
By creating virtual reality tours of properties, potential buyers can experience from the comfort of their own home or help long-distance buyers virtually tour properties they can't physically visit.
VR can create realistic architectural images and walkthroughs for new buildings to help buyers understand and experience the property even before the construction process begins. Property managers can also create a virtual reality tour of the space, walking the tenant through the process and demonstrating each step along the way to help them get acquainted with their new home.
Big data can gather real-time and historical information about the different kinds of building systems like electrical, HVAC, fire/lie safety, utilities, telecommunications, and others and converting into proactive maintenance. It may even alert a property manager of equipment failure before it happens, allowing them to perform maintenance or find a replacement with minimal downtime which keeps the tenants and property managers happy.
The use of drones can be useful in surveying properties or creating drawings of as-built properties. The device makes it possible for digital, multi-perspective site visits and can provide an easy and less expensive aerial photography. It can also give a tour of the area or neighborhood to give potential buyers a feel for the place before visiting or spot potential risks and maintenance problems, which could reduce the price of a property or be used in negotiations.
The introduction of drones can potentially change the real estate market.
The introduction of 5G will offer more bandwidth, allowing more smart devices and sensors to connect to the internet, creating wireless workplaces, and possibly allow more workers to telecommute.
5G can also improve home security in the real estate industry as it will be easier and cheaper to connect many sensors and cameras around a property. The devices will be able to capture higher definition images which can be forwarded anywhere in an instant. However, to make this successful, more 5G base stations for current technologies are needed and have to be placed at close proximity. Commercial property owners can lease space for telecom providers to install base stations and provide power and fiber connections.
Artificial Intelligence and Machine Learning
The data collected by real estate and property industries will be made more actionable with the help of AI and machine learning. Chatbots on property websites may also be able to answer consumer queries more quickly and easily and might even accompany buyers to showings. Some companies are working on technology that would allow a real estate agent to conduct showings via a tablet or with a chatbot, enabling an agent to do more showings in a day.
AI will also help in predicting pricing trends more accurately by looking into historical trends in the market for an area, taking into account the area crime, schools, transportation, and marketplace activity. To make the buying experience faster and more comfortable, startups are creating ways to digitize the entire home buying experience, doing away with paper works that needs to be read and signed when closing a deal.