Real Estate Technology Trends to Watch in 2021
Although the COVID-19 pandemic has damaged major markets around the world, 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 as 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.
This article will look at the state of the real estate industry after the pandemic, real estate tech trends for 2021, and software development trends in real estate.
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. 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. With the newest and largest generation of buyers, millennials will push new housing patterns and digital demands in real estate.
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.
|Topic||Total||Gen Z (18-26)||Millenial (27-41)||Gen X (42-56)||Baby Boomer & Silent Generation (57+)|
|Comfortable buying a home online||23%||36%||39%||19%||7%|
|Confidence making an offer after seeing a 360/ virtual tour but not in person|
|Somewhat / very / extremely confident||42%||58%||59%||39%||23%|
|Not at all / Not very confident||58%||42%||41%||61%||77%|
|Would like yo use each tech tool while home shopping|
|3D Virtual Tour||79%||79%||82%||81%||75%|
|View digital floor plan||79%||76%||85%||81%||77%|
|Unlock with phone and tour on own time||68%||73%||78%||75%||54%|
These newly embraced digital tools would not only make home shopping safer but also quicker and simpler for both buyer and seller. Zillow’s research states that homes with 3D home tours were saved as favourites by buyers 32% more than homes without. They also receive 29% more views than those without. Another study says that traditional virtual tours grew by 147% in 2020, while enhanced virtual tours grew by 1147%.
It’s clear that these real estate development technology trends and that they’re here to stay.
Real Estate Technology Trends To Watch In 2021
So, what are the next big trends in real estate technology? 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.
Artificial Intelligence (AI) Expansion
Companies are releasing more AI-based services that will simplify transactions, such as optical character recognition technology. AI capable of providing more reliable market forecasts will also be made available.
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.
As more information is made available online, prospective buyers will have more opportunities to study and explore properties.
Direct Digital Engagement
More touchless services are being offered to end-users, resulting in a safer and healthier process. Traditional procedures, such as in-person home tours, would be automated as a result of direct digital interaction and disruptive technology in real estate.
Robotic Process Automation
Real estate transactions can be challenging to handle, especially when it comes to communication. To fix these issues, new technologies are being implemented that allow two groups of users to communicate online. Real-time chat, file sharing, and transaction tracking will also be possible.
Digital Innovations In The Real Estate Industry
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.
Big data is the study and extraction of information from vast amounts of data. Its creation will assist in the collection, processing, and collecting of knowledge about consumers. Afterwards, this data is used to predict a user’s behaviour and decisions, resulting in the most appropriate search recommendations for them.
Datasets and predictive analytics allow agents to better understand their customers 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.
Lead Generation and Engagement Automation
Conversation chatbots powered by artificial intelligence will initiate conversations and respond instantly to inquiries. This will assist agents in capturing, engaging, and qualifying online leads. These bots will also manage the initial stages of working with a potential customer as it uses natural language processing.
With virtual reality (VR) and 3D modelling, 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.
Software Development Trends In Real Estate
Smart solutions will allow consumers to automate routine tasks such as client services, communication, leasing, maintenance requests, and scheduling viewings.
Augmented Reality and Virtual Reality
To boost their business, real estate companies are now developing advanced remote property viewings. For example, Zillow’s income has grown by 35% as a result of its 3D home tours.
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.
Customer Relationship Management (CRM) Software
CRM software can track leads, manage contacts, store data, and keep track of the progress made with potential leads.
To determine land value, geolocation technology can visualize parameters such as county maps, flood zone maps, property data, and topography.
Softermii’s CEO Takeaway
Homebuyers are more eager to use online searches than ever before. According to the NAR Real Estate report, in 2019, 81% of millennials found their home via mobile apps. Real estate agents are also increasing their usage of proptech as in the same report, 90% communicate with their clients via text messages and 94% via email.
As millennials drive the latest real estate industry trends, the industry grows alongside them. In 2019, nearly two-thirds of European consumers have increased their use of proptech in their businesses, and this business intelligence has a spread throughout the world. With statistics like this, it’s clear that proptech will continue to grow and that new business will emerge to capitalize on the expanding sector.
Ace Real Estate Development with Softermii
However, all startups won’t succeed.
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 of the real estate industry. To do that, you’ll need an accomplished and experienced developmental team who knows what they’re doing.
At Softermii, our committed members understand the dynamics and challenges that come with creating innovations in the real estate industry. As a result, we deliver expert management, quality assurance, and data-driven products. Schedule a call with one of our experts to learn how you can enter this digital race.