‘Don’t fall behind’: 5 tech trends real estate agents must keep an eye on

Peter Schravemade, the managing partner of REACH Australia, stated that the slow integration of real estate technology was mainly due to the reluctance of industry professionals to let go of their “tried-and-true strategies”. 

The industry-wide adoption of technology has also been hindered by the efforts of large businesses to create specialised tools, according to the expert. 

On the upside, Mr Schravemade noted that real estate businesses “now understand how critical technology is for expanding into new markets and increasing operational efficiency”.

“Now, the future of real estate hinges on how rapidly the sector and its players adjust to the new reality, which is increasingly being shaped by digital technology,” he stated.

But Mr Schravemade said that the strategy will not only involve the adoption of modern software and applications, adding that real estate firms need to make “significant adjustments to management practices and organisational culture”.

He also explained the downside to real estate agents who don’t keep track of the latest technological trends. 

“These innovations in real estate technology, also known as ‘proptech’, present a wide range of options for real estate agents and clients alike, and those who don’t keep up with this very dynamic technology, unfortunately, run the danger of falling behind.”

With numerous technologies now “altering how we purchase and sell houses”, the expert underlined that technology is projected to “fundamentally alter residential and commercial real estate in the coming years”.

“It is fair to assume that developments in real estate and technology are transforming our understanding of properties and property management. The amount of technology used in real estate development is growing daily, and the sector as a whole is expanding quickly.

To help agents “stay on top of the game”, Mr Schravemade enumerated the five “crucial” real estate technology trends that transformed the real estate industry in 2022. 

1. Internet of Things (IoT)

Mr Schravemade said that the IoT phenomenon or the widespread adoption of connected devices that can collect and exchange data is having “a dramatic impact” on various aspects of society as well as how industries operate. 

“In the digital world we live in, accessibility to information quickly and conveniently is of utmost importance. This is made easier by the usage of numerous IoT technologies,” he stated. 

In the real estate industry, he noted that buying, selling and renting homes is now simple, thanks to this technology.

In addition to streamlining these transactions, Mr Schravemade noted it has other benefits. “The use of IoT in real estate reduces costs and simplifies the buying, selling, and leasing of buildings. Through, for instance, automatic heating, cooling, and lighting, there is also a chance to lessen the carbon imprint,” he stated. 

By providing cutting-edge technological solutions, Mr Schravemade argued that agents can help sellers not only distinguish their property from the competitors but also raise its total value. 

“IoT will change how individuals interact with their surroundings, benefiting property owners financially and environmentally,” he stated. 

2. Big data analytics

Big data analytics, which involves the process of analysing large and complex data sets to uncover hidden patterns and insights, has fundamentally changed how organisations operate both inside and outside corporate environments in the real estate industry, according to Mr Schravemade. 

“With the use of big data analytics, anyone may conduct a pertinent and precise real estate market analysis. In addition to investors, other market participants including sellers, lenders, and purchasers also need a comprehensive assessment and appraisal,” he stated. 

On the business side, the expert explained that big data can help target and analyse the impact of their messages amid an environment that’s “already overloaded with commercials and content”. 

Additionally, big data can be used to uncover consumer trends and preferences and make better decisions by utilising current and comprehensive data from various sources.

3. Blockchain

Mr Schravemade said the increasing awareness of the benefits of blockchain technology is leading to its growing use in real estate transactions.

“Blockchain offers a safe, decentralised method to track and transfer asset ownership. Blockchain technology may be used to validate encrypted transactions and make sure that financial records have not been tampered with,” he stated. 

In addition to removing the need for paperwork, reducing expenses, and minimising bureaucracy, the expert noted that blockchain technology offers further benefits for real estate investments. 

This includes the ability to invest in fractional ownership and enabling landlords to sell portions of their holdings while ensuring transparency and ownership rights through the platform.

4. Metaverse

The “metaverse”, which refers to a variety of interconnected technologies that are bringing together the physical and digital worlds, such as social commerce, augmented reality (AR), and virtual reality (VR), is now having a profound impact on real estate trends as well, according to the expert. 

“In the metaverse, you may explore virtual sites, communicate with a virtual agent, tour a property, and close a deal,” Mr Schravemade explained.

He highlighted that virtual tours can save both time and effort by allowing clients to tour a property remotely. 

Additionally, Mr Schravemade pointed out that well-executed VR content can help real estate businesses generate leads, engage clients, and increase website and social media traffic. 

5. Artificial Intelligence

A crucial component of real estate management and financial success lies in “leveraging data to your advantage”, the expert stated. 

“By analysing this data, one may analyse investment risk, get knowledge of market trends, and comprehend customer wants better. However, manually analysing this data would be time and resource-intensive,” Mr Schravemade remarked. 

On that note, he said the future of the real estate industry will be greatly impacted by artificial intelligence (AI).

“Better decision-making is facilitated by AI applications in real estate, and you could draw surprising conclusions from data patterns obtained by AI and machine learning techniques,” he said. 

Additionally, he noted that incorporating AI in real estate can help in calculating rental prices and property valuations, while investing in AI for real estate leads can also enhance the value of data usage.