Technology is changing how real estate functions and more so after the pandemic. The PropTech industry is expected to see some exciting trends in 2023. The integration of virtual and augmented reality technologies in real estate is poised to provide an immersive experience for potential home buyers. The trend of smart buildings and IoT devices will continue to streamline property management and maintenance. Sustainability is becoming increasingly important and will drive the development of eco-friendly PropTech solutions. The digitization of real estate transactions, including the use of e-notarization, will further simplify and expedite the process. Blockchain technology will become more prominent in securing property ownership and transactions, providing enhanced transparency and reducing the risk of fraud. Lastly, the use of artificial intelligence and big data analytics in real estate is expected to increase, improving decision making and market predictions.
The PropTech industry has grown rapidly in recent years, with a 3.5 times increase in the market between 2017 and 2021, according to Businessstat data. The BIM technologies segment saw the best growth, with a four times increase in investment. However, the digitalization of the PropTech industry may slow down due to sanctions. This is because many of the solutions used in the market were developed by foreign companies. The market is now searching for new, optimal solutions. Despite these challenges, the implementation of innovative technologies is still considered important for the development of even the most traditional businesses. The recent pandemic has emphasized the need for IT solutions and PropTech is expected to play a larger role in the future.
Some of the key trends shaping in 2023 are –
- Artificial Intelligence – It takes a great deal of time and resources to manually analyze property transactions. The real estate sector in the future will rely heavily on artificial intelligence in this regard. Algorithms can quickly analyze millions of papers to determine debt levels, home improvements, property valuations, and even some personal information about homeowners. Artificial intelligence analyzes enormous amounts of real-time data to provide insightful analysis. Based on previous data, AI delivers accurate appraisals of real estate markets. As a result, AI can identify consumer needs and suggest appropriate properties, enhancing the whole buying process.
- Lead Generation – Real estate brokers face challenges in identifying potential leads for their properties, resulting in a significant allocation of time and resources to engage with ineffective prospects. To mitigate this issue, brokers have adopted the use of artificial intelligence to assess and select the most suitable leads based on information obtained from various digital sources such as website visitors, landing pages, and digital advertising campaigns. This integration of technology serves to enhance the efficiency and efficacy of the lead generation process.
- Virtual Reality – Virtual reality involves the use of technology to create a three-dimensional image or environment that can be interacted with. Through virtual staging and tours, virtual reality and augmented reality are gaining popularity in the real estate sector, but are still gaining traction as effective marketing and communication tools.
Conclusion
The integration of technology has proven to be a valuable asset for commercial real estate developers, as it elevates transparency and enhances the efficiency of the real estate industry. The power of technology is widely acknowledged and its utilization has significantly transformed the landscape of the real estate sector. A revolution in real estate is taking place thanks to PropTech’s use of technology to boost efficiency and innovation. From streamlined processes to improved data analysis and enhanced communication, PropTech makes the real estate experience better for all. So, let’s embrace PropTech for a more productive, informed, and modern real estate market.
The author is Mr. Aditya Kushawaha, CEO and Director, Axis Ecorp and the views expressed in this article are his own)
