Technology is continually changing our lives. With the internet becoming more and more integrated into every aspect of our lives, be it work or personal, industries are also adopting new technology to stay relevant and competitive. And commercial real estate is no exception.
This sector has been slow in adopting state-of-the-art technological transformation. However, the impact of the COVID-19 pandemic has been a useful catalyst in accelerating technology adoption.
In fact, tech companies have seen a huge potential in the real estate market given that it contributes over $2.8 trillion each year to the U.S. economy. Over the years, an increasing number of tech products developed to help investment firms and buyers and sellers in the real estate industry.
To give you more idea, here are some ways technology is changing the business of real estate.
1. Automation for Repetitive Tasks
Professionals in the real estate industry, including realtors, property managers, and landlords, continuously face repetitive tasks every day. In most cases, they find themselves filling out the same paperwork over and over across different properties.
They could have spent those valuable time on other crucial matters like networking, creating social media leads, or working on a new project. It is difficult to store information in one place and gather useful insights from such collected data.
Essentially, the customary way of managing real estate data is inefficient.
However, with tech solutions such as email, automated appointment setter, portfolio management, and many others, the whole process of managing a real estate business has been much easier.
2. Virtual Reality for Walkthroughs
Virtual reality (VR) is most often associated with gaming. But recent technological developments across various fields, including healthcare and real estate, have proven that such technology has plenty of practical uses.
In real estate, it allows potential buyers and renters to view the property any time and where. Unlike photos and videos, VR tours give you a lifelike and detailed experience as if you are actually walking around the place.
Though VR has been around even before the pandemic, the recent health crisis made the usage of VR technology essential. While keeping a safe distance, landlords and real estate agents can continue showcasing commercial spaces, still allowing an interactive view of the property.
3. Eco-Friendly Construction
Another way technology has transformed the real estate industry is by making construction more environmentally friendly.
With the rise of green technology in construction, buildings are now more energy-efficient and sustainable. In fact, many people these days prefer to have their homes and business establishments installed with solar panels to gain energy independence and thus reduce carbon footprint.
The ever-growing green movement trend has pushed investors and owners in the real estate business to seek financing options like SBA loans and apartment building loans to construct passively designed buildings.
Contractors are also increasing their usage of biodegradable materials in construction to help reduce carbon footprint.
4. Integration of Smart Technology
Thanks to smart home technologies, homes are transforming into something better. It is not only smart devices such as Google Home and Amazon Echo that homeowners are adopting.
These days, it has become a standard of home or building construction to integrate smart home features including, security systems, speaker systems, television, appliances, thermostats, and lights.
It is not only millennial and Gen Z homebuyers who are looking for these built-in home features. Even boomers and Gen X-ers are avid in owning a fully equipped home with these smart technologies.
5. Online Real Estate Marketplace
In-person meetings have always been relied upon in the real estate business by brokers and buyers. Thanks to technology, online marketplaces have become relatively secure and trustworthy platforms even for the real estate industry.
These days, it is so easy for you to shop around for houses in the comfort of your own home. Online market places allow you easy access to a list of homes that fit your preference.
Virtual tours are also accessible through smartphones and other electronic devices. In some of these marketplaces, you do not need to interact with an agent to look around.
6. Price Refinement
Before, brokers use neighborhood factors and key house features to make price estimates of properties. But with technological advances such as artificial intelligence (AI) and precise mathematical modeling, price estimates have become more accurate.
Other factors, including crime statistics, noise levels, accessibility to schools, and commercial areas, are included in the calculation. With these technologies, homebuyers can easily make more informed choices in the future.
These technological integrations in the real estate industry make the future look more exciting. Not only will these innovations make everyone’s job much easier, but they will make running a business in this industry more cost-efficient.