The real estate industry is rapidly embracing digitization and making up to the list of top industries following the most popular technology trends. A survey states that Proptech has grown by 1072% in 2019 and is expected to grow more in the coming years. While, the pandemic has not been good to most of the businesses but, the digital wave kicking in threw some extra limelight to the online options rather than taking up the traditional approaches.
So what are the highlighted real estate technology trends as of now? Are we experiencing a drastic change in the real estate market after covid 19? Numerous questions may come up, let’s clarify each and have a detailed look at the real estate tech trends in 2021.
Is Covid 19 the biggest factor in changing the Real Estate Market?
Once the pandemic reaches an end, millennials will be the most interested generation to look out for properties. According to Zillow, 6.4 million new households will be created by 2025. As the young generation has been living and evolving with technology. There are bright chances of millennials using proptech than previous generations. A study states that around 40% of millennials are quite comfortable in purchasing a home online, while 59% are confident in making an offer on a home they’ve checked out only digitally. Moreover, approximately 80% of millennials wish to see 3D virtual tours and detailed floor plans while looking for a new home. Certainly, Covid 19 has been the biggest factor in bringing in a digital wave to the real estate market, and the technology in real estate is here to stay!
Business Predictions for the Real Estate Market
The real estate market is all set to become more prominent and global. Being expanded by more than 55% from $29 trillion in 2012 to $45.3 trillion in 2020, having the fair potential to grow further to $69 trillion in 2030. The predictions seem quite bright as the growth looks tremendous in the last few years. The year 2021 witnessed growth from $2,687.35 billion to $2,774.45 billion at a compound annual growth rate of 3.2%. Talking about the regions in specific, Asia-Pacific accounted for 40% of the global real estate market. Western Europe accounted for 24% being the second largest region and the same trend continued for the rest of 2021. Predictions say the stats might increase gradually in the coming years.
We all know, competition in almost every sector will be increasing. There will be lower mortgage rates and not enough properties to be sold off. With the increasing percentages, the war for properties will surely hike and drive 6% price growth in the initial six months. Later, the demand and supply will slowly stabilize and drop down to 3%, maintaining a proper balance.
Top Technology Trends in Real Estate Industry 2021
Each year there are numerous myths about the real estate industry. While some seem to be justified and some turn out to be just assumptions. Even after a dip in 2020, the real estate industry runs steady in numbers. Let’s find out the top five trends contributing to real estate industry transformation.
- Millennials Leading the Way
As discussed earlier, millennials will remain the largest real estate buyers in 2021 across the globe. Stats show that the young generation is currently the top spender and will remain the same in the coming years too! Being the leading group of home buyers since 2010, the trend will continue to grow in 2022. though Covid has slowed down the growth, the modern realities show that each ear the population involved in purchasing real estate grows by an average of 5%. Millennials are therefore expected to account for about 55% of the real estate market in 2022.
The classic ways are faded when there were agents involved in selling, renting, or buying a property. Millennials today are making use of internet searches before making a decision to buy a home. Stats by New Real Estate Trends & Forecast says that 44% of new homeowners find information online first about buildings for sale. 73% of buyers are making use of mobile or tablet search devices for their purchases in 2021.
- How to Keep Up with the Trend
Planning to build a real estate website or proptech products? There are a few ways to keep up with the trend-
- Distinguishing Features
Apart from having the most required features, your product also requires the current high in demand features as well. In this way, a business will be able to keep the customers longer on the platform. There will be a much better impression of your company than the rest of the competitors offering a similar line of services. Having better engaging features is always a plus.
- Improve Online Listings
If you’re willing to engage customers through a mobile app, remember that the listings should be arranged perfectly. Upload high-quality pictures and allow the buyers to have a virtual tour of the property as well. While the previous year showed that properties were in great demand and not everyone could buy the same. Thus, in 2021 the house-hunting process is more vigorously expected.
- Consider Benefits, not the size
It’s not always important that one should emphasize the size of the property, rather than they should be looking for the benefits. for instance, millennials today look for the locality they are in rather than looking for the size of the property they are choosing.
- Focusing on New Business Model in the Real Estate Industry
Buying and Selling are just basics, rather there’s a lot to be focused on in the future. For keeping up with the new modern generation, high-tech options and smart technologies have been created with more and more options to satisfy the customers. It’s important to provide something extra by connecting customers with the right home and providing modern amenities alongside.
- Protech is taking Over the Real Estate Industry
PropTech which is also known as property technology uses information technology for helping people research, sell, buy or manage the property as well. With this, the real estate tech companies are always looking to add value to their business with the help of technology. At a deeper level, proptech addresses fundamental questions of how one experiences and extract value from real estate.
Technologies Leading the Future for Real Estate Industry
- Real Estate Management Software - It makes it easier for property owners for managing their real estate customers online.
- Virtual Reality - As a 3D virtual tour is quite an imperative factor for almost all generations where people are looking for properties online. Having high-quality images and 360-degree views/videos will be cutting-edge technology for millennials.
- Artificial Intelligence and Machine Learning- Statistical models, machine learning, and big data are used for evaluating property value. Machine learning algorithms are a perfect way for predicting business commissions after every closed deal.
- Real Estate CRM Software- CRM particularly helps to manage the real estate business. also helping to track emails and leads, manage contracts and keep track of the progress.
- Blockchain- Blockchain can completely revolutionize the real estate industry with the ultimate power of security, clarity, and efficiency altogether. It involved tokenization, smart contracting, and much more.
- Big Data- Real Estate websites are trying to personalize the customer’s experience by suggesting properties based on the previous preferences or purchasing/researching behavior. Through predictive analytics, it blends the power of historical data and behavioral analytics along with the real-time data making it a complete algorithm to evaluate and forecast market trends.
- Mobile Applications- Property websites are required to be mobile-optimized or a customized mobile app for the real estate industry. One should consider the target audience and choose if one is required to make a website or a mobile application.
Real Estate is a progressive industry making accountable developments year over year! With the smart technologies in power, there’s a lot to be achieved! In today’s market millennials are taking over the race to research and purchase properties online. Digital trends for real estate are varied and slow adopted but, have the potential to reach further and beyond. Get started with the most necessary technology for your business and stay in line with the trends in power. Looking out for the right real estate software development? A mobile app or a website? We’re up to with the right strategy