According to Mike McGowan, the impact of COVID on the real estate market is significant and has forever changed the way our industry operates. This change, while disruptive and uncomfortable for some, has provoked the rapid adoption of real estate technology, the likes of which we haven’t seen before.
Agents, teams and brokerages are now seriously reconsidering the technology platform, tools and services needed to effectively do business today. The imminent need for innovation and automation is now a requirement to not only survive, but thrive. In these uncertain and volatile times, successful agents have learned how to lean in to the power of technology to help them stay focused on what they do best.
Over the past few years there have been sweeping changes – from the advent of virtual brokerages to increased investments in operating system technologies from mega franchises and small brokerages alike, to the catalyzation of remote working tools and live streaming capabilities– driving innovation and reshaping the entire real estate landscape.
The broker business is more competitive than ever before and as we look ahead to 2021, it will be those agents who rely on real estate technology who will forge ahead successfully. But to truly modernize and automate the time-consuming, manually intense processes that have plagued our industry for years, we need to look beyond trendy apps and siloed point solutions.
This next evolution is about being able to extend technology and automation to create efficiencies across the entire buying and selling process and most importantly, drive growth.
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The advent of AI-powered tools and solutions has been instrumental in automating many of the mundane processes that distract agents from revenue-generating activities. Innovative AI-powered tools can be the linchpin to optimizing efficiency, driving down expenses and creating real value for agents in 2021 and beyond.
AI can be used to help Realtors automate the entire hand-holding process – nurturing, concierge, tagging, scheduling, follow-up – essentially becoming an intelligent virtual assistant working for Realtors 24/7 to ensure they work smarter, not harder.
By relying on AI-powered chatbots, for example, potential clients can interact and ask questions via a broker web site while a chatbot intelligently handles the request. As chatbots are fed information over time, these tools become smarter, honing responses to efficiently boost conversion and support more closed deals. And when the time is right, an agent is notified and can step in to offer the kind of white glove, hand holding service only a real human can do!
This leads me to the most important lesson we’ve learned this year: Real estate technology, while an invaluable asset in an agent’s toolkit, will never replace the human, high-touch, personal interaction and connection clients need.
The home-buying and selling process is an emotional one and clients want to like and trust the agent who is working for them. No real estate technology can replicate the power of true human connection. Innovative tools and solutions will help to enhance the experience for both the agent and the client, ensuring the agent is 100% focused on the client and the details that matter, as opposed to being bogged down in the minutia of transaction management. As the market gets more competitive, focusing on what Realtors do best – manage client relationships – will be critical to keeping afloat during turbulent times.
The world was turned upside down this year and the real estate industry was not spared in the wake of this global pandemic. But from the disruption came the positive change and innovation our industry desperately needed. Agents shouldn’t fear this change, rather, harness the power of technology to support efficiencies and focus on honing irreplaceable client service skills.
Those that resist change will find themselves falling further behind the competition and scrambling to catch up. Technology and agents working together is the future of our industry and based on what we have seen so far, the future is bright. (https://www.housingwire.com/articles/real-estate-technology-adoption-in-a-post-pandemic-world/)
Here Are Four Accelerated Technology Trends Impacting The 2021 Commercial Real Estate Market (Jennifer Kite-Powell, Senior Contributor, Consumer Tech)
Digital transformation has been a buzz word circling the commercial real estate (CRE) industry for more than a decade. The fast-track of property technology in the real estate industry has grown by 1072% from 2015 to 2019, and in 2018, venture capital firms invested $8.3 billion in Proptech companies around the world.
“The pandemic has certainly created unique challenges for the real estate industry. It is important to recognize that while the pandemic served as an accelerant, it did not change the trends that were already occurring,” said Jim Berry, Vice Chairman and US real estate leader, Deloitte. “As memorable as 2020 events have been, 2021 and beyond will be telling, as certain CRE companies begin to step into opportunities to better align their operations with those of the occupier and end-user.”
Berry says the great worldwide experiment that Covid created required everyone to stretch themselves in how they live and work.
“Users of real estate – whether tenants or ultimate end-users – as well as how and what is valued, have taken more of a center stage when it comes to decision making of company leaders as they move through re-entry and into the next norm,” said Berry. “For example, where people work will depend on business needs and employee preferences. As companies examine their culture, purpose and preferences, CRE leaders will benefit by embracing this and integrating it into their planning and investments.”
Berry says Deloitte sees “purpose, location and analytics” as the continued evolution of the value proposition of CRE.
“While the pandemic was an eye-opener, we see it as an accelerant of existing trends. It is telling that 56% of CRE respondents to our 2021 CRE Outlook survey said that the pandemic exposed shortcomings in their organizations’ digital capabilities. Only 40% of respondents said their company has a defined digital transformation roadmap.
Berry believes that leaders will have to walk the tightrope between managing costs and investing in the future.
“The decisions made during 2021 will have impacts on those who begin to differentiate themselves and drive this different value proposition,” adds Berry.
According to John D’Angelo, US real estate leader, Deloitte Consulting, the impact of the COVID-19 pandemic on commercial real estate (CRE) is accelerating these four technology trends in 2021 and beyond.
Rise of digital twins. The CRE industry creates and has a lot of data. D’Angelo says that by capturing and using data about the building itself as well as Internet of Things (IoT) data about how the building operates to make [..] operations more efficient, improve occupant (shopper, resident and patient) experiences and identify issues or potential issues.
Direct digital engagement. Through direct digital engagement with the end-users of real estate, providing touchless services facilitates access, ensures a safe and healthy environment and automates traditional processes.
Data and analytics. D’Angelo says data-driven decision making will continue to mature as demand and behavior patterns change rapidly, and CRE companies work to understand and respond to the opportunities and risks these changes present. “Trying to do this by instinct or gut simply doesn’t work effectively in this environment,” added D’Angelo.
Robotic process automation. According to D’Angelo, real estate has been notoriously slow in leveraging technology. “Robotic process automation (RP) is an example of the slow automation adoption in CRE. As we see CRE companies work to improve operational efficiency and reduce costs, RPA will play a role in overall digital transformation efforts,” said D’Angelo.
“Ultimately, a CRE company’s competitiveness in the post-COVID-19 world could hinge significantly on the extent to which their people can succeed in a digital work environment,” said Berry.
According to Andrii Horiachko, Co-Founder and CTO at Softermii: Although the COVID-19 pandemic has damaged major markets around the world, the real estate industry is booming. Home prices are at their highest in nearly 15 years and are seeing an annual growth rate of 11.2%. Property technology (proptech) is also advancing faster than ever before, and it has already been growing at a fast rate.
Between 2015 and 2019, proptech has grown by 1072% and in 2018, $8.3 billion was invested in the digital field. This amount is projected to grow as according to the same report, 56% of the industry said that the pandemic revealed vulnerabilities and shortcomings in their company’s digital capabilities and technology in the real estate industry.
This article will look at the state of the real estate industry after the pandemic, real estate tech trends for 2021, and software development trends in real estate.
WHAT WILL CHANGE IN THE REAL ESTATE MARKET AFTER COVID-19?
When the pandemic comes to an end, millennials will be approaching the average age to become first-time homebuyers. According to Zillow, 6.4 million new households will be created by 2025 to accommodate this new wave of demand, and the industry will continue to experience a major housing boom through 2021. With the newest and largest generation of buyers, millennials will push new housing patterns and digital demands in real estate.
As the generation that grew up with technology, millennials are much more at ease with proptech than previous generations. One study reveals that approximately 40% of millennials are comfortable purchasing a home online, and 59% are confident in making an offer on a home that they’ve only toured digitally. Furthermore, more than 80% of millennials want to see 3D virtual tours and interactive floor plans when looking for a new home.
These newly embraced digital tools would not only make home shopping safer but also quicker and simpler for both buyer and seller. Zillow’s research states that homes with 3D home tours were saved as favourites by buyers 32% more than homes without. They also receive 29% more views than those without. Another study says that traditional virtual tours grew by 147% in 2020, while enhanced virtual tours grew by 1147%.
It’s clear that these real estate development technology trends and that they’re here to stay.
REAL ESTATE TECHNOLOGY TRENDS TO WATCH IN 2021
So, what are the next big trends in real estate technology? The following are just a few of the many examples of trends that are shaping the property industry. They also include commercial real estate future technology trends.
Artificial Intelligence (AI) Expansion: Companies are releasing more AI-based services that will simplify transactions, such as optical character recognition technology. AI capable of providing more reliable market forecasts will also be made available.
- Analytics and Data Management: Data will influence decisions, and since there is still no centralized national system for agents, new startups will have unlimited opportunities to develop and change the existing process.
- Digital Twins: As more information is made available online, prospective buyers will have more opportunities to study and explore properties.
- Direct Digital Engagement: More touchless services are being offered to end-users, resulting in a safer and healthier process. Traditional procedures, such as in-person home tours, would be automated as a result of direct digital interaction and disruptive technology in real estate.
- Robotic Process Automation: Real estate transactions can be challenging to handle, especially when it comes to communication. To fix these issues, new technologies are being implemented that allow two groups of users to communicate online. Real-time chat, file sharing, and transaction tracking will also be possible.
DIGITAL INNOVATIONS IN THE REAL ESTATE INDUSTRY
- Advertising Automation: Ad campaigns for new listings can now be generated automatically by software systems. They can also display ads to the appropriate audiences and include real-time statistics such as views, clicks, and demographics.
- Big Data: Big data is the study and extraction of information from vast amounts of data. Its creation will assist in the collection, processing, and collecting of knowledge about consumers. Afterwards, this data is used to predict a user’s behaviour and decisions, resulting in the most appropriate search recommendations for them.
- Hyper-Personalized Messages: Datasets and predictive analytics allow agents to better understand their customers and group them with those who share similar lifestyle characteristics. As a result, agents can now build highly targeted messages and content that target particular audiences.
- Lead Generation and Engagement Automation: Conversation chatbots powered by artificial intelligence will initiate conversations and respond instantly to inquiries. This will assist agents in capturing, engaging, and qualifying online leads. These bots will also manage the initial stages of working with a potential customer as it uses natural language processing.
- Virtual Tours: With virtual reality (VR) and 3D modelling, consumers can view properties without ever setting foot in them. They also allow builders to show off empty spaces so buyers can get a sense of how the property will look before it is completed.
SOFTWARE DEVELOPMENT TRENDS IN REAL ESTATE
- Administration Automation: Smart solutions will allow consumers to automate routine tasks such as client services, communication, leasing, maintenance requests, and scheduling viewings.
- Augmented Reality and Virtual Reality: To boost their business, real estate companies are now developing advanced remote property viewings. For example, Zillow’s income has grown by 35% as a result of its 3D home tours.
- Blockchain Technology: Blockchain can be used to store data and can act as a digital register for transactions and contracts. It can automate, accelerate, open, and track transactions.
- Customer Relationship Management (CRM) Software: CRM software can track leads, manage contacts, store data, and keep track of the progress made with potential leads.
- Geolocation Tools: To determine land value, geolocation technology can visualize parameters such as county maps, flood zone maps, property data, and topography.
Homebuyers are more eager to use online searches than ever before. According to the NAR Real Estate report, in 2019, 81% of millennials found their home via mobile apps. Real estate agents are also increasing their usage of proptech as in the same report, 90% communicate with their clients via text messages and 94% via email.
As millennials drive the latest real estate industry trends, the industry grows alongside them. In 2019, nearly two-thirds of European consumers have increased their use of proptech in their businesses, and this business intelligence has a spread throughout the world. With statistics like this, it’s clear that proptech will continue to grow and that new business will emerge to capitalize on the expanding sector.
To build a successful real estate solution, you need a product that can stand out and compete in the market. You will also need to follow software development trends in real estate and understand the future of the real estate industry. To do that, you’ll need an accomplished and experienced developmental team who knows what they’re doing.Recommend0 recommendationsPublished in