How Technology is Disrupting the Real Estate Market
PropTech, or property technology, applies digital technology to the real estate industry. PropTech helps owners, agents, and buyers (or renters) own, manage, lease, and buy property more conveniently.
PropTech uses Artificial Intelligence, Blockchain, Augmented or Virtual Reality, Analytics, and Big Data. Let’s look at how this is disrupting the real estate sector.
View properties virtually
PropTech is changing the way the industry handles “viewings.” Real estate developers don’t see a great value in spending a ton of money on a show unit when they can build a 3D walkthrough for a fraction of the cost. Virtual Reality (VR) gives renters and buyers the ability to visualize a property without stepping into it. They can do this from the comfort and privacy of their homes, and the experience is interactive and immersive.
Conduct your house search anytime, anywhere
Prospective buyers expect 24/7 service, which human real estate agents cannot provide. Enter chatbots to the rescue. AI-powered chatbots can provide an almost human experience. The bots are always available, have fast response times, and have facts and figures at their fingertips. Buyers get the information they want when they need it.
Accurate cost Estimation with Big Data and Analytics
In real estate, particularly in the residential market, mathematical models use big data to estimate the value of homes. The models consider thousands of parameters, like the neighbourhood, size and amenities, local trends, and industry insights to calculate the value. This helps both buyers and sellers identify strategic opportunities and make better decisions.
Blockchain for peace of mind
Blockchains can store transaction records in a tamper-proof way. They can store property titles securely. While buying property, blockchain technology can confirm whether the seller is indeed the owner. This allows for more secure, transparent, and faster transactions.
The indirect impact of technology on real estate
There is an indirect effect of digital technology on real estate. More and more employees prefer to work remotely. Technology advances are encouraging more businesses to support remote work. This means that organizations no longer need to buy or lease large office spaces in expensive areas. They can maintain smaller offices to use when employees need to meet physically.
Another side effect is that remote workers do not need to compete for scarce and expensive housing in Silicon Valley or New York City. They can live in more affordable areas across the country or the world.
PropTech is Here to Stay
Digital technology gives real estate professionals a competitive edge. It personalizes and improves the buying or leasing experience and enables smoother and faster transactions. Everyone benefits.
Today, we don’t think twice before buying a car or medical services online. Soon, digital real estate transactions will become equally common.