The integration and adoption of technology into every industry is inevitable, even in industries that are traditionally relatively slower to adopt like real estate. Tech developments are enabling professionals in the space to be able to facilitate easier, faster, efficient, and more secure deals for all parties involved. Below are some of the emerging technology trends that are being integrated into real estate now, and in the coming years, many of which have been accelerated by the outbreak of COVID-19. The AR/VR spaces have seen tremendous growth, and it seems with the onset of COVID-19 the demand and urgency to roll out these capabilities has only increased. With the need for limited contact during the pandemic, restricted travel, and work from home trends, it is only natural that AR/VR trends will continue to surface in the real estate industry.
Artificial intelligence is the most significant disruptor in today's commercial real estate industry. By all indications, that's a trend that will continue in the years to come. More than ever in the past, investors today need to be adaptable and able to see the big picture. Automation can be a big part of that puzzle, both as a way to gather necessary data and as a tool for optimizing your time and resource use. AI has the potential to impact the sector at every level, from development through sales and management of properties.
As the amount of data grows, AI could be used to classify and store documents and even proactively alert when a new appraisal is due or a property explodes in popularity, for example. Machine-learning enabled search could help people quickly analyze the massive amount of search data that exists by pre-processing and tagging useful meta-data for all property-related documents in a company's repository. How can companies keep up? According to the Altus Group report, two of the biggest challenges facing firms in collecting or utilizing more data to drive decision-making are a lack of internal capability and lack of appetite from the company to invest in the required technology. To solve for these challenges, consider a PwC report's digital transformation strategies for real estate organizations, which include these four steps:
UPDATED, Feb. 5, 11:38 a.m.: Just 20 years ago, fax machines were in wide use and most people didn't have cell phones. Fast forward to today, and smartphones are inescapable and personal hotspots are tucked into everyone's pockets. The real estate industry has seen its own advances during that time, with drones debuting on construction sites and prefabricated modular apartments now being snapped together easily onsite.
In the 21st century, technology has impacted the way we do things. From Artificial intelligence, digital open housing, and cryptocurrencies, these emerging trends of technology have transformed the way we know the real estate sector. The new tech has taken the industry by storm, accelerating the growth and the way we do business. Every aspect of the real estate industry has been impacted by technology. The emergence of Generation Y and millennials making up a huge percentage of homebuyers; players in the industry have been able to scale up their operations to keep up with the emerging demands.