10 New Real Estate Technology Trends
June 11th, 2024
New Real Estate Technology Trends
Are you curious about the emerging real estate technology trends? Here's everything you need to know about the latest technology trends in real estate and the most popular ones.
Technology is advancing rapidly, and every industry is adapting to it. Like other industries, technology has drastically influenced real estate. Adding innovative technologies in real estate modifies how this business works and its success.
The real estate market is the most significant part of the global economy and, according to a Statista report, is expected to reach around $729.4 billion by 2028. Real estate was the last to add digitization to their industry, and now people are actively following these new technology trends.
Technology continues to transform the way real estate professionals conduct business and contact their clients. Real estate technology, or proptech, is changing how we buy, sell, and manage properties in many ways. Over the next few years, technology will reshape the real estate business.
Like the real estate world, technology trends continue advancing and evolving. The more real estate companies turn to tech-based solutions for their real estate, the more competitive they become. Understanding these new trends and staying up to date is important since our world is changing.
Here is what you should know about the new real estate technology trends.
Chapters
1. Artifial Intelligence (AI)
Artificial Intelligence (AI) is everywhere now. From chatbots to data analysis, this new tech is a powerful source that can make your property more intelligent and more connected. Most of the data collected every day through internet searches, social media, and connected devices are important.
AI can quickly process anything and everything to identify unique trends, such as forecasting, which in real estate means potentially anticipating trends that impact housing prices due to population growth and many other data points.
According to a PWC article, organizations are using AI to prevent concurrent activities such as paperwork, scheduling, and timesheets. Using AI in real estate will not only rapidly grow this industry but also make clients' and realtors' lives easier.
AI can be used in many ways:
- Conducting historical data analysis
- Optimizing pricing strategies
- Automating consumer service task
- Determining global real estate and market trends
- Identifying consumer needs
- Enhancing the overall purchasing experience
2. Internet of Things
From smart homes to self-driving cars, the Internet of Things (IoT) is changing our lives every day. IoT refers to any device that exchanges information with other devices using the Internet. Statista projects that the smart devices market in the United States will grow at a compound annual rate of 10.66% between 2022 and 2028.
No matter where you are, you can see anything and everything using these devices. The Internet of Things not only makes your life more convenient, but it also makes you feel safer. You can easily track any safety and security measures from the tap of a screen.
Most, almost all, of these devices are cloud-based and can connect with other smart appliances and devices in your area, making your lives so much easier. Smart homes are already adapting to the Internet of Things.
According to the Pew Research Center, 82% of people ages 30 to 49 years old use at least one device or social media platform. The most popular platforms they use are Instagram and Facebook. These two platforms offer different benefits for realtors.
3. Drones
Drones are a real estate technology trend that offers new ways of marketing and inspecting real estate. They can offer faster and more accurate inspections, improved marketing capability, and invaluable insights into the real estate market, making them widely adopted in this industry.
Drones are able to:
- Take photos and videos of the product for marketing purposes
- Assist in inspecting properties where it may be challenging to reach, such as roofs and gutters
- Map out the layout and architecture of a home or a neighborhood to better track changes
Agents can use drones in many ways, including aerial photography, virtual property tours using high-resolution equipment, and other ways to make the real estate agent's life easier.
4. Big Data
Big data is a massive volume of structured and unstructured data with a lot of variety. It is a lot of information that quickly comes from many different resources. Real estate developers can use big data to inform themselves about potential investment opportunities by analyzing demographics, market trends, and preferences.
Big data is popular for real estate decisions because it can make them more accessible and more intuitive. Real estate applications based on machine learning models can predict changes in rent rates with 90% accuracy, making it easier for clients to understand what properties are good investments and which are not.
5. Apps and Social Media
In today's world, technological advancements have interconnected everything, making managing it easier. Apps and social media have streamlined real estate transactions. With just an app, you can search for your ideal home, converse with a professional online, and access information about renovations and repairs at your fingertips.
Social media, which is used by more than half of the world's population, is a potent marketing tool. It is transforming the real estate industry by attracting new buyers and sellers. Moreover, it plays a crucial role for realtors looking to establish their personal brands and advance their careers.
According to research from the National Association of Realtors, 77% of realtors use social media as part of their business, and for good reason. Many realtors find that social media is a great place to post quality pictures of properties, create relationships with potential clients, and drive traffic to their websites.
As a real estate professional, using social media is about selling houses and building an online presence. Real estate agents can attract buyers by posting about homes for sale, as well as future clients by sharing useful tools, beautiful images, and engaging content. You can post anything from a glam room to new construction homes to buy to boost your social media engagement for leads.
6. Blockchain Technology
With hacking and data breaches, security is a major concern for everyone. Blockchain is a distributed ledger that allows transactions between two parties to happen in a verifiable and permanent way. Real estate professionals no longer have to write things down or rely on Excel; blockchain technology offers workflow automation and secures information transfers.
Blockchain also transfers data and personal information through a series of dispersed ledgers to keep it secure. When using large transactions, blockchain gives clients and realtors access to more data and the safety of all information.
7. Virtual Reality (VR)
Virtual reality is a new popular real estate technology trend that makes exploring and buying properties easy and exciting. It helps potential clients take a virtual or digital tour of the property right from their fingertips, making it more accessible.
Viral reality transports people around the world so they feel like they are somewhere else. This has huge potential for real estate, as buyers can use VR to walk through homes from miles away. In contrast, companies can use VR to create virtual tours and showcase the neighborhood, allowing potential clients to have better access to the homes' amenities.
8. Digital Twins
A digital twin is a representation of physical objects or processes in a digital environment designed to simulate real-world scenarios. In real estate, digital twins are properties created using data from various IoT and sensors.
Using digital twins on your property, you can simulate many things to show how the property will stand. These scenarios are typically natural disasters, maintenance, or performances.
As more data is presented digitally, consumers have more opportunities to view it. For example, people can view a 3D model of a house to examine everything they may not be able to in a basic house tour, and professionals can scan the home for any repairs or harm that may need to be fixed.
9. Building Management System
A building management system is an automation system that controls buildings' mechanical and electrical systems. Managing a property's utilities and functions as effectively as possible is how the world is changing, which is being used more in real estate.
Building management systems can lower maintenance costs and reduce consumption by optimizing every aspect of your home. Personalizing things such as temperatures and lighting can improve your home's comfort, making your life easier and saving you time and money.
Building Management Systems (BMS) are one of the most important technology trends in real estate right now. They ensure the most efficient resource usage and help turn any place into a smart home. BMS can help you save time and money while freeing up resources that can be used elsewhere, which relates to eco-friendly trends.
BMS has been primarily used to reduce energy costs, and governments have seen benefits, saving up to 30% of energy. Depending on your needs and preferences, BMS will automatically adjust settings to the desired level even when you are not present.
10. Data Security
Protecting data is always important, especially when it is for a real estate business. The real estate industry is no exception because businesses hold a lot of valuable information about people that can be hacked into and used.
Data security is a trend that has been one of the most important ones in real estate development going forward. Many software companies and startups offer solutions for encrypting data, monitoring/preventing attacks, and securing network traffic.
Many new tools enable security to manage risk and access systems remotely to manage and back up all data. This allows you to provide a safer work environment on real-world development sites.
Methodology
We used information from different sources and our data to create this new real estate technology trends guide. There were various data to use, so we put them together to help you understand the real estate technology trends.
Above are a few sources we used to gather most of our information about new real estate technology trends.
FAQS
What is the newest technology in real estate?
Some of the most popular and newest technologies in the real estate world include virtual reality, artificial intelligence, smart homes, big data analytics, drones, energy efficiency, IoT, and many other things, so make sure you keep up with all these new tech-savvy programs evolving.
How is technology changing the real estate market?
New platforms are becoming available to complete multiparty real estate transactions, save time, and stay more organized. From secure and legal tasks to simple file sharing, these types of technology are improving efficiency and changing how the interactions go with agents and clients.
What's the next big thing in real estate?
Real estate agents handle many tasks every day, from dealing with clients to completing paperwork. In 2024, AI real estate innovation can help streamline tedious processes by implementing virtual assistants, AI chatbots, and automated management.
New Real Estate Technology Trends - The Bottom Line
Technology will be used in every aspect of our lives in the coming years, including the real estate industry. As technology advances, new tools and services will emerge, revolutionizing how we do business. Real estate technology trends continue to advance and evolve in many ways, and staying on top of these trends is crucial to remaining competitive.
Numerous technologies will change the way homes are sold, bought, and managed in 2024. Those who fail to adapt may risk falling behind the competition. The real estate world is competitive, so keeping up with the new trends is essential for your business.
Partnering with experienced proptech developers, brokers, and agents can help thrive in this new digital era while personalizing buyer and seller experiences.
If you are considering moving or selling, contact us or visit our website. Our team at Raleigh Realty is here to help you with any home buying or selling needs.
Ryan Fitzgerald
Hi there! Nice to 'meet' you and thanks for visiting our Raleigh Real Estate Blog! My name is Ryan Fitzgerald, and I'm a REALTOR® in Raleigh-Durham, NC, the owner of Raleigh Realty. I work alongside some of the best Realtors in Raleigh. You can find more of my real estate content on Forbes, Wall Street Journal, U.S. News and more. Realtor Magazine named me a top 30 under 30 Realtor in the country (it was a long time ago haha). Any way, that's enough about me. I'd love to learn more about you if you'd like to connect with me on Facebook and Instagram or connect with our team at Raleigh Realty. Looking forward to connecting!
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