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The introduction of cutting-edge technologies in real estate promises to change the way business forever is conducted in this age-old industry. The real estate market is a major component of the world's economy, with a global value of over $7 196 billion.
In some respects, the adoption of technology in real estate has lagged behind its use in other business sectors. It was partially due to a reluctance to change methods that had worked well in the past. Another factor that slowed down the widespread use of real estate technology was major players' attempts to develop proprietary tools.
But now, these issues are fading, and the market has seen an increase in real estate tech in recent years.
Moreover, the industry players are starting to understand the benefits of investing and using modern technologies. According to the Technology and The Future of Real Estate Investment Management report created by the University of Oxford, in 2020, 53% of real estate companies are now directly investing in technology. 42% of Statista respondents confessed they see potential in Smart Building technologies, while 56% of respondents have already noticed the impact from the tech sphere.
It is poised to see even more growth in how new technologies are genuine real estate disruptors and will affect everyone involved in the industry.
So if you want to learn more 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 based on Softermii’s experience in creating successful real estate solutions such as Rently, Real Estate Association, Proper and Apartmii, read on!
What Is Proptech: Industry Overview
Proptech is a rather amorphous term that is formed from the words property and technology. It encompasses the various solutions that are involved in the growth of commercial real estate software.
Proptech is also known as CREtech for commercial real estate technology or REtech for real estate technology. It usually refers to the software employed in real estate tools and applications.
Six months through 2021, VC deal activity in residential real estate tech has already reached an annual record of $6.2 billion, according to PitchBook data. And with $2.6 billion in funding, the commercial segment is on track to make 2021 the second-most valuable year for venture activity.
The industry shows no signs of slowing down with new generations of consumers and realtors opting for smart solutions that facilitate faster rentals and more convenient living arrangements.
Real Estate Technology Trends in 2022 That Disrupt the Industry
The successful adoption of a specific technology in the real estate industry will be determined by its ability to provide value for its users.
According to the 2021 NAR Home Buyer and Seller Generational Trends report, certain features are important to users. Photos, detailed information, floor plans, real estate agent contacts, and virtual tours are among them.
Technologies help to cover the users' needs and bring them valuable information they use for decision-making.
Automated Rental and Purchasing Property Platforms
Nowadays, how clients find the new property they bought is changing to the Internet more than meeting with real estate agents.
The 2021 NAR Home Buyer and Seller Generational Trends report states that 43% of all buyers look online for properties for sale.
The benefits of using automated property technologies are overwhelming. Consumers and real estate professionals will be at a distinct disadvantage if they choose not to use these valuable tools to find or sell a home.
3D Virtual House and Apartment Tours
Closely associated with search applications are solutions that enable prospective buyers to take a virtual tour of properties while selecting. It is among the main tech trends in real estate for 2022 as it eliminates the time and expense of visiting multiple properties, many of which can be removed from the buyer's list of potential purchases through virtual viewing.
Of course, most buyers will want to tour the property before making a final decision physically. Still, the time and money savings for the customer and real estate agent in determining the best fit can quickly add up. Moreover, today VR technologies allow having almost realistic virtual tours to houses where you can easily examine the property state, interior details, and furniture.
Real estate software customers expect to get the best service and experience from using the technologies. Contact channels must be available 24/7, the response time must be as fast as possible, and the error rate should be close to zero.
An automated service desk with the conversation AI can easily fulfill the requirements. This technological approach goes beyond common chatbots making it one of the main real estate innovations in 2022. According to Deloitte, 'these assistants would be built for purpose, have a rich set of capabilities, and be integrated into the end-to-end process landscape of the enterprise.'
Databases and data warehouses are used to store the immense quantities of information that is gathered concerning consumer preferences.
According to McKinsey's research, real estate applications based on machine-learning models can predict changes in rent rate with 90% accuracy, while the changes in other property metrics can predict with 60%. That can pretty well help clients understand what property is a better choice for their investment, as in the case of commercial property and non-commercial.
Tech-savvy readers may not immediately make the connection between blockchain technology and real estate. While many individuals are familiar with how the blockchain is used in cryptocurrency, it has wide applications in other areas of commerce, including the real estate industry.
Blockchain technology can be used to verify encrypted transactions and ensure that no tampering impacts financial records. It will prove useful in fractional property investment and allow landlords to sell portions of their stake in a given holding.
The technology will also enable important documents such as property titles to be stored securely. As with other market sectors, the surface has only been scratched as far as the potential in employing the blockchain for other cases in the real estate industry makes it one of the top real estate tech trends in 2022.
Fractional Property Investment
Fractional ownership refers to percentage ownership in an asset. It is a common investment strategy when purchasing expensive items such as aircraft or vacation homes. Using the blockchain mentioned above technology, fractional property investment is flourishing for a variety of reasons.
The high price of homes put them out of reach to many would-be buyers. Fractional property investment allows these individuals or groups to build a deposit on a future full purchase.
Communal investors can all share rental income from a shared property, opening up an additional income stream. Employing a fractional ownership approach will enable more diversified investment and allow people to unlock the value in their homes.
One of the most efficient technologies used in the industry is mobile, e.g., developing different real estate apps. The most popular ones are rental and purchasing mobile platforms.
These apps offer several advantages to potential renters over the traditional means of locating an apartment or house. Databases are frequently updated, providing more timely information on new properties put on the market and those that are no longer available.
Consumers interested in purchasing, selling, or renting a property can also use apps tailored to their needs. They can help you locate the house you want and put you in touch with a real estate agent to help facilitate the deal.
Internet of Things (IoT)
Smart homes, apartments, and devices are changing the way we live in many ways. Smart devices, in general, are powered by the Internet of Things (IoT) and are becoming one of the main property management trends.
The IoT refers to the practice of embedding sensors and computing technology into various items with which we interact every day. The ultimate goal of this technology is to provide individuals with a more convenient and pleasurable life.
Let’s investigate in what way IoT technologies are changing our homes and transform them into smart homes. There are three main characteristics of a smart apartment:
- Smart amenities include devices such as smart lights and locks and integrated services like home cleaning and package delivery.
- Connectivity is designed into a smart apartment when it is built to enable devices, building systems, residents, and management to communicate. Items such as WiFi, smart sensors, and intelligent access controls are benefits afforded by enhanced connectivity.
- Community management by providing services that save residents time, money, and minor difficulties is the final component of a smart apartment. Built-in event calendars, resident assistance, and on-demand services are some of the features that help property managers and renters build a more vibrant community.
While new construction is prime territory for implementing smart apartments, older structures can be retrofitted to provide the same level of connectivity.
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.
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.
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, thus making direct engagement one of the most popular digital trends in real estate.
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.
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.
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.
Technology for Real Estate Agents
Some technological innovations are equally important to consumers and real estate professionals. Today, real estate agents begin to use specific technology for realtors designed to help them provide services to their clients. Here are some popular real estate agent technology tools that are in use today:
- Multiple Listing Services (MLS)
- In-app communication
- Social media
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.
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).
High-Tech Devices in the Real Estate Industry
The innovative use of technology in real estate has been incorporating drones into showcasing and selling homes. Here are some of the advantages that drones offer real estate agents and those buying and selling homes:
- Aerial photography
- A better view of large properties
- Additional interest in listings
The Future of the Real Estate Technology
Proptech is one of the young industries that is expected to grow dramatically in the upcoming years. As the world population is predicted to double by 2050, the demand for real estate will also double.
Anyway, as the world's citizens become more comfortable with technology, the possibilities will continue to expand. Since everyone interacts with the real estate industry to some degree, it will impact the lives of countless individuals in the years to come.
In the upcoming years, technologies in Proptech with help with:
Real estate businesses are in need of high-performance apps and solutions that help them acquire technologies. Depending on the company's goals, we develop the most appropriate platforms, along with features and services that the business needs.
Apartmii is a mobile engine that implements real estate technologies for buyers, sellers, renters, and landlords. We began to work on the project during the pandemic: and this was our major challenge. The deadlines were tough, as the situation was changing dramatically. People needed the solution to rent an apartment without leaving their house.
We started with the development of the engine with market research. Step by step, we discovered new aspects and added them to our plan. After a comprehensive analysis of the materials, we developed a user journey flow. In the end, we created an engine that is helpful and effective for different types of clients.
We developed a mobile engine that implemented the most demanding technologies, including:
- artificial intelligence
- virtual reality
- augmented reality
- simple UI
- live-video tours
- credit score
We managed to reinvent rental real estate software. We've added an option to skip or accelerate some steps. Therefore your tech team can develop the models that you need for your business.
The French Real Estate Association approached us to develop a mobile app used by realtors that can provide real-time information about the properties available for purchase or rental.
We started with market research and business analysis to define the key features and tools that a platform should comprise. Later, we moved to UI/UX design and coding. After the successful launch of the product, we keep providing maintenance services for the company.
For the French Real Estate Association, we developed a mobile iOS application that allows interaction between agents and clients. It helps to improve customer satisfaction and increase the number of successful transactions.
We introduced the following features to the product:
- real-time visibility of the market section with the option to geolocate and filter searches to identify properties that meet customer requirements
- detailed descriptions of property added to the platform
- real-time comparison tool
- collaborations between agents and agencies
- custom zones option
Currently, over 3,900 agencies are using the software. Also, the solution achieved MobileWebAwards Best Real Estate Mobile Application for the 2020 award.
Proper is a communication app for tenants and landlords. The main challenge of the project was to unite three parties in the rental process. Therefore, we needed to set them unique roles and functions to fulfill their specific goals.
To develop a Proper app, we started with the market analysis: it was important for us to understand exactly how the communication between the parties happens. This research helped us determine the plan for app development, as well as create mockups for design. After the UI/UX stage, coding, testing, and launching processes took place.
We've created three roles for the users: tenant, landlord, and contractor. Each of them has a set of functions that allow them to communicate better.
Currently, the application is widely used by tenants and landlords. The app is available for Android and iOS.
Rently is a digital platform that brings IoT into Real Estate and makes it integral to the property demonstration process. Rently reached us with the request to resign the product.
Analyzing the app, we've determined some of the biggest pains to fix. Complicated registration forms and poor UX maps were among them. Our team worked on the major issues intruding the best practices, market research, and our own experience in real estate apps development.
To redesign Rently, we came with the following solutions:
- building the initial wireframes
- creating new user flows
- redesigning the visual layout
Currently, Rently is widely adopted by the real estate industry. It covers all major US cities and continues to grow demographic scope.
Let’s create a real estate platform for your needs!
Technologies have already changed the world. For some industries, their impact is crucial. Real estate is one of them. In the next few years, we expect the growing popularity of technologies for the real estate market.
If you are planning to introduce real estate innovations into your business, don't waste your time. In 2021-2022, you can already enjoy all the benefits of proptech but remain a step ahead of your competitors.
We at Softermii will gladly help you with any real estate solution you may need. Our team of specialists will develop a solution according to your requirements or help you set an Apartmii engine for your business.
Among the real estate development services we provide, you will find the following:
- custom booking list,
- product management & design (discovery phase)
- custom booking listing
- property management platform
- multiple listing services
- mobile app for real estate agents
- mobile app for real estate agents
- recommendations listings engine
Ready to work on your project? Contact us to discuss the details and estimate the scope of work. As soon as we're done with the details, we're ready to start!
Frequently Asked Questions
What Proptech trends will be booming this year?
New trends in real estate technology appear all the time. A couple of years ago, it was impossible to imagine that visiting an apartment you want to rent would be possible without even leaving your flat.
AR and VR is the most demanding technology used in real estate, especially in the world, changed by Covid-19.
Mobile applications that automate all processes are also popular among agencies and agents. Their popularity will also grow. 3D virtual house and apartment tours and analytics and data management are also among the latest real estate industry trends.
How is technology changing the real estate industry?
With the introduction of emerging technologies in real estate, the overall industry has changed. The requests are processed more quickly. It takes less time and effort to communicate with tenants and landlords.
The features that apps and platforms provide are multiple, and they cover different requests. There are certain commercial real estate technology trends that also have an impact on the list of options that are available for usage.
How to implement upcoming technology trends in the real estate industry?
You should not use every single technology to change the real estate market. In some cases, the changes are not necessary. In other cases, you need to conduct a careful market analysis before implementing technology trends in real estate for your business.
We recommend you be careful with the upcoming technology trends in the real estate industry and involve professionals in platform or app development. In this way, you will save time and money on the development of unnecessary features.
Property management technology trends will show the vectors for growth and development, but you must decide which of them are the most appropriate for your business.
Should you develop a mobile version of the application right away?
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 as it’s one of the main real estate and technology trends nowadays.
What are the time and costs of developing a video conferencing app?
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
What technology stack is usually used?
We work with the latest technologies to develop real estate apps that meet user expectations, your business needs, and market requirements:
How to choose a reliable real estate software development company?
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.
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