While technology is responsible for creating new industries, it also plays a crucial role in advancing industries that have been around for centuries. Today, we’re discussing the real estate industry and how technology is currently driving the space towards a more remote, tech-driven sector. With so much talk around technology like artificial intelligence and blockchain, it’s important to understand how this impacts your industry and your business. Many business owners fall into the trap of thinking that new technology doesn’t apply to them, and by the time they realise that it does apply to them, it’s too late and competitors have already beaten them to the punch.
Virtual Reality
In the last few years, virtual reality has gone from up and coming to adoption. While it’s not quite reached mass adoption, most people are at the very least aware of virtual technology. The most common way we use virtual reality is through VR headsets. While VR headsets are a common sight in gaming, they are slowly making their way into more corporate settings too.
Many high-risk industries such as aviation and healthcare are turning to VR to simulate life-like scenarios. Trainee doctors are able to carry out virtual surgeries while trainee pilots are able hone their skills without leaving the ground.
But as the gap between virtual scenarios and real-life scenarios shrinks, the use cases of virtual reality expands. Circling back to the property industry, the biggest impact that VR is having is on property viewings. Virtual viewings have added an extra layer of realism that video tours can’t compete with. While this use case hasn’t quite made it to the mainstream yet, we can certainly expect the popularity of virtual viewings to rise in the coming years.
Whether you’re involved with a large property firm or you run a small real estate business, being the first to capitalise on the rise of virtual could be extremely fruitful for your company, especially if you are trying to attract the business of investors. Property investors usually view real estate on a global scale so it’s easy to see where virtual viewings fit in. Allowing investors to view properties from anywhere in the world through a VR headset could be a key selling point.
Artificial Intelligence
There’s no doubt that artificial intelligence is a hot topic when it comes to emerging technology. Every industry is discussing how AI will impact their sector, and even workers are considering how AI could reshape their role. For the most part, the impact of AI will be positive but business success will undoubtedly depend on how quick you are to adopt the tech and also at which stage you choose to adopt AI.
AI isn’t perfect, yet, and we’re already seeing examples of companies being too quick to turn to AI. However, we’re also seeing many cases where AI can compete with human power. If you’re in an industry where AI can replace humans without a hit to performance, it’s important that you don’t miss the jump.
In terms of how AI is currently impacting property and real estate, consider how machine learning is driving more accurate recommendations. With more and more buyers turning to online platforms in search of their next home, the biggest opportunity could lie in AI’s ability to serve up bespoke recommendations.
Blockchain
Blockchain technology made its name in the crypto space, but it’s starting to become more adopted in what would be considered mainstream industries. In fact, any industry that involves confidential data or complex transactions is probably using blockchain in some way. With that said, we haven’t seen too much blockchain adoption in the property space. Some have explored the route of fractional property ownership by introducing NFTs to the real estate world, but this use case failed to progress outside of the crypto world.
However, some would argue that blockchain still has the potential to disrupt the property market. The main belief, or hope, is that blockchain and smart contracts replace central intermediaries that currently exist. Banks, lenders and brokers all take a piece of the pie to simply facilitate a deal, albeit a complex deal. While most would agree we’re a long way from seeing this, the discussion is certainly there.
Final Thoughts
You only have to look to the past to see how tech has impacted property. Contracts became digital contracts, valuations became desktop valuations and so on. But as we enter a new era with technology such as AI at the forefront, it appears we are witnessing a new wave of opportunity for businesses and also industries. From a business perspective, it’s crucial that the end user’s experience is still considered when adopting new technology, and ultimately, this will determine success. Will you be able to harness the power of AI without sacrificing your customer’s interaction with your business?