6 Real Estate Technology Trends in 2022 to Watch
In this article, you’ll learn about:
- the state of the real estate industry after the pandemic;
- technology trends in real estate for 2022;
- and software development trends in real estate.
Although the COVID-19 pandemic has damaged major markets worldwide, the real estate industry is booming. Home prices are at their highest in nearly 15 years and are seeing an annual growth rate of 11.2%. Property technology (proptech) is also advancing faster than ever before, and it has already been growing at a fast rate.
Between 2015 and 2019, proptech has grown by 1072%, and in 2018, $8.3 billion was invested in the digital field. This amount is projected to grow. According to the same report, 56% of the industry said that the pandemic revealed vulnerabilities and shortcomings in their company’s digital capabilities and technology in the real estate industry.
What will change in the real estate market after Covid-19?
When the pandemic comes to an end, millennials will be approaching the average age to become first-time homebuyers. As the newest and largest generation of buyers, millennials will push new housing patterns and digital demands in real estate. According to Zillow, 6.4 million new households will be created by 2025 to accommodate this new wave of demand, and the industry will continue to experience a major housing boom through 2021.
As the generation that grew up with technology, millennials are much more at ease with proptech than previous generations. One study reveals that approximately 40% of millennials are comfortable purchasing a home online, and 59% are confident in making an offer on a home that they’ve only toured digitally. Furthermore, more than 80% of millennials want to see 3D virtual tours and interactive floor plans when looking for a new home.
These newly embraced digital tools would make home shopping safer and quicker, and simpler for both buyer and seller. Zillow’s research states that homes with 3D home tours were saved as favorites by buyers 32% more than homes without. They also receive 29% more views than those without.
6 Real Estate Technology Trends In 2022
So, what are the next real estate technology market trends? The following are just a few of the many examples of trends that are shaping the property industry. They also include commercial real estate future technology trends.
1. Artificial intelligence (AI) expansion
Companies release more AI-based services that simplify transactions, such as optical character recognition technology. AI capable of providing more reliable market forecasts will also be made available. For example, this technology can show almost 100% accurate guesses about the prices for buying and renting housing in different city areas. AI is especially useful for businesses that consider long-term lease of office space and find the best option in the market.
Some of the biggest companies in the real estate industry, such as Zillow, Compass, and LoanSnap, use AI to help buyers find the perfect home and mortgage. This technology greatly simplifies the work for real estate agents.
2. Analytics and data management
Data will influence decisions, and since there is still no centralized national system for agents, new startups will have unlimited opportunities to develop and change the existing process. Accordingly, now is the perfect time to create an innovative solution in this industry. You can build an application that will analyze a huge amount of data to provide valuable information necessary for decision-making by real estate market participants. For example, your solution might show the level of reliability of a developer and their buildings.
3. Digital twins
As more information is made available online, prospective buyers will have more opportunities to study and explore properties. Imagine seeing a 3D digital model of each building when looking for housing. Such applications will make predictions of the critical parameters of environmental conditions that a particular house can withstand (earthquakes, tornadoes, landslides, etc.). Maintain companies will know the current conditions of buildings (existing and potential damage, date, and place of repair) and fire escape plan.
Moreover, digital twins can be useful during constructing houses, which helps the developer understand how safe their project will be. Such applications can prevent the collapse of buildings and use developers' resources rationally.
4. Direct digital engagement
More touchless services are offered to end-users, resulting in a safer and healthier process. Traditional procedures, such as in-person home tours, would be automated due to direct digital interaction and disruptive technology in real estate. Buyers and real estate agents will no longer need to travel to every apartment or house to make a decision. Therefore, photos and virtual tours should be of high quality. Thus, people can see each element in detail.
But it's much more important when, in applications, buyers can look at houses that are still under construction. At the same time, the developer posts photos every month about the state of the future building, increasing its reliability in the buyers' eyes.
5. Robotic process automation
Real estate transactions can be challenging to handle, especially when it comes to communication. New technologies are being implemented to fix these issues that allow two groups of users to communicate online. Real-time chat, file sharing, and transaction tracking will also be possible. You can also develop an application where potential buyers can solve some of their small questions using a chatbot, significantly saving real estate agents' time.
Or, you can create an AI-powered Virtual Assistant solution where a customer interacts with a robot that speaks like a human. This assistant can connect potential clients already with a real agent for deeper discussions of real estate issues. Sensely has done something similar in the healthcare industry (a virtual nurse app).
6. Digital Transaction Management
That's one of the important property technology trends, and we recommend paying attention to it. Buyers and agents value their time. Thus, you can create a solution to remove paperwork and enable signing documents electronically. Consequently, the parties to the transaction can be in different parts of the world and still access the contracts from any device.
Real estate innovations 2022
Next, we will talk about the innovations that will continue in the next year. Pay attention to this information to catch the trends and brainstorm what you can add to your real estate application.
1. Advertising automation
Ad campaigns for new listings can now be generated automatically by software systems. They can also display ads to the appropriate audiences and include real-time statistics such as views, clicks, and demographics. Real estate agents can understand which housing is best for sale or rent. And accordingly, they concentrate their efforts on the objects that bring them the most profit.
2. Big data
Big data is the study and extraction of information from vast amounts of data. Its creation will assist in collecting, processing, and collecting knowledge about consumers. Afterward, this data is used to predict a user's behavior and decisions, resulting in the most appropriate search recommendations for them.
3. Hyper-personalized messages
Datasets and predictive analytics allow agents to understand their customers better and group them with those who share similar lifestyle characteristics. As a result, agents can now build highly targeted messages and content that target particular audiences. They send emails to describe the housing, the benefits, and the documents needed to conclude a deal. What's more, agents use Facebook and Instagram to conduct tours of apartments or houses. They can also create their own YouTube channel, where they talk about the latest news on the real estate market, share life hacks in this industry, and much more.
4. Lead generation and engagement automation
Conversation chatbots powered by artificial intelligence will initiate conversations and respond instantly to inquiries. It will assist agents in capturing, engaging, and qualifying online leads. These bots will also manage the initial stages of working with a potential customer using natural language processing. This technology helps agents be with their customers 24/7 and get new leads they connect with during business hours.
5. Virtual tours
With virtual reality (VR) and 3D modeling, consumers can view properties without ever setting foot in them. They also allow builders to show off empty spaces so buyers can get a sense of how the property will look before it is completed. And clients can choose their own home from anywhere in the world, being on vacation or a business trip. In addition, you can use drones for aerial photography of buildings, which can attract the attention of new customers to your service. So virtual tours are one of the recent breakthrough digital trends in real estate.
Software development trends in real estate
We also recommend that you familiarize yourself with the following trends before developing aт application in real estate.
1. Administration automation
Smart solutions will allow consumers to automate routine client services, communication, leasing, maintenance requests, and scheduling viewings.
2. Augmented reality and virtual reality
Real estate companies are now developing advanced remote property viewings to boost their business. For example, Zillow's income has grown by 35% due to its 3D home tours. Construction companies are increasingly using this technology because they want to sell as many apartments as possible before the building is operational. Consequently, they attract specialists who create videos and photos of future houses and apartments. And potential customers see what they can buy.
3. Blockchain technology
Blockchain can be used to store data and can act as a digital register for transactions and contracts. It can automate, accelerate, open, and track transactions. Moreover, the records of all verified transactions are unchanged, and you are sure that your confidential blockchain records are available only to the network participants you choose.
4. Customer relationship management (CRM) software
CRM software can track leads, manage contacts, store data, and keep track of the progress made with potential leads. Real estate agents can have their online accounts to see all of their interactions with potential and current clients. They can make selections to send messages to different groups of people who can deal with them.
5. Geolocation tools
Geolocation technology can visualize county maps, flood zone maps, property data, and topography to determine land value. You can also create an app to use useful filters: noise, air pollution, parks, river/sea, and industrial sites.
6. Internet of Things (IoT)
You can also develop an application that will transform your ordinary home into a smart one. This trend involves embedding sensors and computing technology into various items we interact with every day. IoT is needed to simplify people's daily lives. Just imagine that a person remotely controls the house or apartment in one program on a smartphone or tablet, adjusting lighting, room temperature, house cleaning, and parcel delivery. What's more, you can also create a virtual assistant that can communicate with the residents and the people outside the front door when no one is at home.
But you also need to understand that to get the most out of this technology, you need to have a good Internet connection. Therefore, we recommend using 5G that provides greater bandwidth, resulting in higher download speeds.
7. Mobile Apps
You can create a web application that benefits from real estate trends. But don't forget that more and more people are using smartphones in their daily lives. They shop there, socialize, plan their lives, play, and more. Hence, mobile app development is essential for a business success story. Such a solution will help you retain existing customers and attract new ones.
New apps are released every day, increasing the offer for home buyers. But this doesn't mean that they are all reliable. When choosing an application, users worry about their data being stolen. Therefore, we also recommend that you pay attention to ensuring the security of your solution. You can make this trend another notable benefit.
The future of the real estate technology
Modern technology is raising the bar for businesses. Homebuyers have become more demanding and want to have easy-to-use apps. Therefore, the demand in this direction will continue to increase. In addition, experts predict that the global population will double by 2050, which means even more people will need their own homes.
Perhaps companies will create apps where people can buy homes without real estate agents in the future. How? For example, developers will create virtual agents that will do their job more efficiently and faster. Accordingly, such companies will be both application developers and agents.
Softermii’s CEO takeaway
According to the NAR report of 2021, 97% of home buyers began their search online and used websites and mobile applications more than real estate agents, especially when speaking about the younger generation. Real estate agents are also increasing their usage of proptech as in the same report, more than 90% communicate with their clients via text messages and email. Besides, according to Statista, in 2020, 35 percent of proptech investors said that smart buildings were the most interesting area of Proptech innovation.
As millennials drive the latest real estate industry trends, the industry grows alongside them as purchasing, renting, or managing property is becoming simpler than ever. All parties involved in the search process, from agents to brokers to consumers, benefit from digitalization. Especially as homebuyers and tenants are more likely than ever to use online searches, a professional and well-developed real estate app can be a huge success. With statistics like this, it's clear that proptech will continue to grow, and new businesses will emerge to capitalize on the expanding sector.
And now we’re going to share some of our cases in real estate. They demonstrate what applications we can develop, our experience in real estate, and technology trends.
Real Estate Association
We developed a mobile app, Real Estate Association, that provides real-time information about the properties available for rental or purchase.
Our development team researched the real estate and proptech market. Then we did an in-depth analysis to define the features and tools in our solution. Our professionals took up UI/UX design and coding. We managed to launch a new application to the market and continue to support it.
Our team created an application that allows interaction between agents and clients. Real Estate Association increases the number of transactions and improves clients satisfaction.
We decided to include the following features in the app:
- Detailed descriptions of property added to the platform
- Real-time comparison tool
- Real-time visibility of the market section with the option to geolocate and filter searches to identify properties that meet customer requirements
- Custom zones option
- Collaborations between agents and agencies
Now, about 3,900 agencies are using a mobile app Real Estate Association. Moreover, this project achieved MobileWebAwards Best Real Estate Mobile Application for 2020.
Our development team created a mobile engine Apartmii that improves the interactions between landlords, tenants, and realtors in a long-term perspective.
We started working on this project during the start of the pandemic. We had a tough deadline as the situation in the real estate market changed dramatically. Buyers could not go out on the street once again to look at different options for apartments. They were looking for apps to find the accommodation they wanted online.
Our team has researched the proptech and real estate market. We found all the new aspects to add to our project. Further, our specialists analyzed the data obtained and created a user journey flow. In the end, we managed to build an engine quickly, which is effective for different types of clients.
Our development team created a mobile engine that includes the following key features:
- Artificial intelligence
- Simple UI
- Credit score
- Live-video tours
- Virtual reality
- Augmented reality
We developed innovative software that allows us to create real estate mobile apps twice as fast. Therefore, you can skip or speed up some steps while developing your solution
Rently is a real estate IoT software solution for self touring vacant properties.
Rently has approached us to fix their product and make it competitive in the US market. Complicated registration forms and poor UX maps were some of the main problems we had to solve. So, our team analyzed Rently in detail and implemented the best practices, market research, and our own experience to improve this application.
We decided to significantly change the design of this project by doing the following:
- Сreated new user flows
- Redesigned the visual layout
- Built the initial wireframes
Our team has managed to make Rently competitive in the real estate market. It is used by people in all major cities of the United States, and the number of active users is gradually increasing.
Our development team created a platform RadPad for landlords and renters to simplify real estate transactions.
Our team needed to integrate third-party libraries and SDKs for key features of a future app. After solving this issue, we created custom UI/UX elements and renovated the app customers' credit reports.
We developed an app RadPad with real-time data and easy flow. Our specialists have added the following features to this project:
- Event tracking
- Customer support
- Social networks
- Scanning credit cards
RadPad has over a million apartments, condos, and houses in Los Angeles to New York City. Besides, this app has been mentioned as one of the Top 10 Best New Apps for the past two years.
Develop your real estate app
To build a successful real estate solution, you need a product that can stand out and compete in the market. You will also need to follow software development trends in real estate and understand the future technology in real estate. To do that, you’ll need an accomplished and experienced developmental team who knows what they’re doing.
At Softermii, our dedicated team understands the dynamics and challenges of creating innovations in the real estate industry. As a result, we deliver expert management, quality assurance, and data-driven products.
Frequently Asked Questions
Experts forecast that the global population will double by 2050, and new generations will increasingly prefer to choose housing online. Accordingly, this creates great opportunities for companies looking to get their share of the real estate market. In addition, developers will come up with virtual assistant applications that will replace traditional real estate agents.
If you are going to create a real estate app, you need to consider artificial intelligence, digital twins, analytics, and data management trends. And you may also need direct digital engagement, robotic process automation, and digital transaction management.
Of course, since more and more people use smartphones in everyday life and make even important decisions, such as buying or renting a home, on the go. Therefore, you need to create a mobile app first to compete in the real estate market.
You need to understand that each project is unique in its way, which makes it impossible to answer this question accurately. But we can answer it after communicating with you and analyzing your idea. We know that an application's cost and development time depend on several key factors:
- The team and the project sizes
- The launch day
- The type of software
- The number and quality of specialists in the team
We work with the latest technologies to develop real estate apps that meet user expectations, your business needs, and market requirements:
Experience, collaboration, and trust lead to reliability. At Softermii, we strive to provide a range of options to fit every real estate need. Our experienced team of over 100 specialists. Our developers, project managers, and QA specialists work with you in a way that builds trust. Choosing a reliable real estate software development company means choosing a company that collaborates with you and tailors software to your needs.
Softermii works with clients as partners to ensure we deliver the most advanced and secure software that incorporates all your needs, such as IoT, artificial intelligence, conferencing engines, and AR/VR. By partnering with us, we can develop real estate software that fits seamlessly with your business principles and enhances your market reach, empowering you to stay connected in a digital age.