The Future of Real Estate: How Technology is Revolutionizing The Industry
by Sumona Real Estate 24 March 2023
The rapid development of new and exciting technologies has caused new breakthroughs and ways of working in a number of industries. The real estate market is no different in this sense, with new technological solutions consistently coming out to the benefit of tenants, landlords, homeowners and property developers.
Technology is tackling so many of the existing problems in the property market and these solutions are being developed at a pace never seen before.
Software Solutions for Real Estate Projects
One of the most commonly seen solutions to problems in real estate is the creation of real estate software platforms to manage a variety of processes which were typically managed manually. For example, those running property projects can get access to a solution that allows them to more easily manage their projects and their investors.
This allows for more streamlined communication channels and makes it so that any problems can be addressed quickly, making projects take much less time to be completed. Users are able to manage their investors and also get easy reporting for their tax requirements.
There are also software solutions for building management, which allows building owners to manage their entire portfolio. For example, users of some platforms can quickly schedule maintenance works, collect rent and deposits, distribute agreements and more. This helps to reduce time spent on admin work and improves financial efficiency.
As can be seen in the above graph, there’s a wide variety of problems currently facing the property market and those working in it. The use of technology can be widely applied to deal with these problems, with real estate professionals particularly highlighting the potential uses to combat building management, data security, customer experience and planning permission.
Making it Easier to Sell and Rent Out Property
With so much competition in the property market, technological solutions are seeing increasing use by real estate agents. For example, since the pandemic the use of virtual tours and viewings of properties. This is more convenient for potential buyers and tenants and makes it more likely for them to take a chance on a property.
In addition to this, more websites advertising properties for sale and rent are constantly appearing, giving potential buyers and renters more ways to try and find the property of their dreams. Many companies are even finding new ways around security deposits which is a big barrier to entry for many tenants.
Getting More People On The Property Ladder
House prices have been massively increasing in recent years, and this has made it more difficult for people to get on the property ladder. Technological solutions for home ownership are starting to change this. For example, it is becoming more common and reasonable for those looking to get started to purchase fractional ownership in a home, which is common for other asset classes.
This means for a reduced cost, people can get their foot in the door and make money from investing in property without having a huge upfront pool of cash.
Blockchain in Real Estate
The use cases of blockchain technology are rapidly developing and these use cases apply to almost every type of market, with property being no different. For example, blockchain technology in property can give buyers a detailed and accurate history of a property and who it’s been owned by.
For sellers, it means they’re able to be more transparent during the sales process, which makes it more likely for them to secure the deal with their buyer. Transactions are also able to be completed much quicker without the need for paper documents through the use of enforceable smart contracts.
Environmentally Friendly Buildings
It’s no secret that climate change and the environment are becoming an increasingly hot topic as we see consistent global changes in the environment. This has created a technological drive to make property a greener market.
For example, many appliances can be placed on timers so that they’re only running when they need to- wasting less energy and creating less pollution. Furthermore, construction firms are increasingly using greener materials in their buildings, reducing the overall carbon footprint of the industry as a whole.
Now that you’ve read this article, you should have a good understanding of the ways that technology is revolutionizing the real estate market. Every aspect is being changed, from the way people look for properties, to the way people buy and rent their properties and how buildings are managed. These changes are likely to accelerate further in the future.