Proptech is currently everyone’s favorite buzzword. This article will discuss the top 7 proptech trends for 2023 that will dominate proptech conferences, podcasts, and all blogs related to proptech.
Proptech is frequently referred to as the new disruptive force and innovation driver, as well as the modern solution for real estate professionals who are burdened by mountains of paperwork. A number of commercial real estate tech trends have evolved in recent years, propelling the expansion of the real estate industry.
What is Proptech?
Proptech, or property technology, refers to all the technological tools that real estate professionals utilize to streamline the process of buying, selling, researching, marketing, and managing a property. Whether you call it Real Estate Tech, Retech, Realtech, and CRE Tech, proptech always means robust alignment between real estate and technology.
And if property technology seems somewhat remote from the individual consumer, it isn’t. Consider your most recent vacation spent in a lovely Airbnb apartment, which you chose from among many other stunning locations generously listed on the platform – and at a much lower price than you would have paid for a hotel in the same area. If this resonates with you, you have witnessed personally how technology has transformed the real estate sector. Airbnb took the risk and married century-old technology and real estate, pretty much in the same way that Uber has revolutionized the transportation industry.
According to Emerging Trends in Real Estate Europe 2021, 78% of respondents believe that the usage of technology by real estate organizations will increase during the next three to five years.
What are the 7 proptech trends for 2023?
1. Real Estate Drones
Using drones to capture amazing aerial photographs that offer a distinctive viewpoint is one of the newest trends in proptech. Drones are currently used to capture different types of real estate, including homes, apartments, hotels, vacant land, commercial properties, and more. Additionally, today’s drone cameras can capture 360-degree panoramas, a large number of aerial shots, still images, and video. Plus, the creation of high-resolution aerial photographs of real estate without the need for an expensive aerial photography session, offer better way to view expansive open space.
Who uses drones?
Buyers frequently inspect the entire property from various angles before making a purchase but it wasn’t always feasible to see a property from this many angles. Notably, the adoption of drone technology in the real estate sector is altering this. Prospective buyers can now inspect houses from an aerial viewpoint thanks to drones. Prospective tenants and purchasers can see more of the neighborhood thanks to drones, improving the whole real estate buying process and guaranteeing that purchasers make better educated choices.
In the real estate industry, drones are used for property maintenance. Smaller drones can fly and access hard to reach locations so if there are any issues, these drones will detect them.
Residential and commercial real estate are the two forms of real estate that use drones the most. Typically, real estate brokers who are marketing residential properties want 8 to 10 glitzy aerial photos from which to chose. These listings might range from small homes to enormous estates with a lot of land. These are provided to prospective clients, therefore, saving both the agency and the customer time and money.
Drones for real estate are attracting a lot of interest from commercial real estate brokers, real estate investment businesses, and property developers wanting to offer images to highlight a significant piece of land, building or construction project. These are frequently bigger locations where aerial photographs taken from a much higher altitude, are more useful for capturing the entire property. In other words, drones allow for a clearer view of buildings and large plots.
Several businesses currently employ drones for real estate technology. These companies include Coldwell Banker, RE/MAX, Century21, Keller Williams, Coldwell, Avanti, and Goodman Real Estate.
2. Artificial Intelligence (AI)
There was some discussion in the past regarding the importance of artificial intelligence in our daily lives, however, that debate is virtually over. The message is obvious. In 2022, artificial intelligence (AI) is here to stay. Artificial intelligence is a major factor in practically every facet of life, just look at Netflix and Amazon. By the end of 2030, Forbes predicts that “AI is anticipated to add $15.7 trillion US to the global economy.”
A study by Accenture claims that a company’s revenue might increase by up to 38% by 2022 if they invest in artificial intelligence (AI) and human-machine collaboration. With all eyes on AI, it is clear that this technology will have a significant impact on how real estate is used in the future.
What is AI in proptech?
Property transactions contain a vast amount of data, and manually analyzing it takes a lot of time and resources. It is safe to say that this is where artificial intelligence will be crucial for the real estate sector in the future. Algorithms can quickly scan through millions of papers to look at debt levels, house improvements, property valuations, and even some personal data about a homeowner. AI analyses enormous amounts of data created in real-time and provides insightful information from it. AI determines market trends for real estate and delivers accurate appraisals using previous data. Hence, AI can identifying consumer needs and propose appropriate properties, enhancing the whole purchasing experience.
AI technologies will soon become commonplace and a result, companies who have adopted it will have a huge competitive edge while those that haven’t will make considerable strides in this field.
AI can improve processes and fine tune existing products and services. The real estate sector can use it in the following ways:
Property analysis and evaluation made easy
Realtors are likely to close more deals when they are able to provide prospective clients additional information. AI technology can assist real estate agencies in giving a customer accurate, comprehensive information about a house. What price should you buy a house today in order to sell it at a profit tomorrow? Every real estate firm focused on investments has this question on their minds. It’s difficult to do an existing property appraisal and project its future market worth because numerous variables affect the price, which may fluctuate abruptly. A realtor might not be able to remember every little detail as a result and this is where real estate AI is useful.
Lead generation
For each of their many properties, real estate brokers struggle to find potential leads and frequently wind up wasting several hours on interactions with ineffective prospects. To negate this, artificial intelligence is used to choose the most qualified leads based on data acquired from website visitors, landing pages, and digital advertising.
Real estate management
It takes a lot of work to manage rental properties. There are several steps in the process, including creating lease agreements, dealing with rental applications and transactions, and producing disclosure statements. Thanks to AI technology, there are various ways that property management might be simplified such as automating paperwork. This frees up time and allows realtors to focus on other projects.
Content marketing
Real estate companies can use technology to deliver tailored content to prospects. Given how chatbots will affect the future of the real estate industry, their position in content marketing is fairly obvious. The use of chatbots and AI assistants can improve communication between property managers, landlords, and tenants. The chatbots can deliver alerts and answer frequent questions from renters in real-time. The use of chatbots and AI assistants can improve communication between property managers, landlords, and tenants because the chatbots can deliver alerts and answer frequent questions from renters in real-time. Without using aggressive sales tactics or desperate attempts to obtain a prospect’s contact information, AI-powered chatbots can answer common client inquiries and ask relevant questions regarding property location and budget limits. Additionally, AI can check real estate paperwork for errors like blank fields and missing signatures.
3. Virtual Reality
The use of technology to generate a three-dimensional image or environment that can be interacted with is known as virtual reality.
Virtual Reality and Augmented Reality are becoming more popular in the real estate sector through virtual staging and tours but have only recently begun to gain traction as efficient marketing and communication tools in the real estate sector.
The rising financial investment in VR and AR technologies may have a big influence on the real estate industry. Both prospective buyers and developers can gain from the use of virtual tours and virtual staging.
Real estate is a multibillion-dollar sector; therefore, it has to implement strategies that make customers feel good in order to persuade them to spend their hard-earned money on their dream house.
Showcase your virtual properties
Before choosing a property, clients need to visit plenty of places, and this takes time and money. Enabling millions of individuals to virtually tour houses without leaving their homes, VR technology helps to resolve these issues.
Virtual staging and visualization
VR helps in the sale of construction-related real estate. In industries where housing is currently under development, there aren’t any tangible products for customers to see and choose from, making it difficult to inspire faith in them. Marketing products that have not yet been created is a challenging task, but with VR, a prospective buyer can see how their house will look in the future before it has been built.
Virtual reality can be used to stage a property and get it ready for display. The absence of furnishings and fixtures might greatly lower the likelihood of a sale, however, once the homes have been staged, selling them becomes considerably easier. Real estate brokers provide several furniture arrangements to customers based on their own preferences, which helps them visualize their future home. These tools help agents quickly turn prospective leads into actual sales while also improving the buyer experience.
Remove geographical barriers
Due to its simplicity and cost-saving benefits, virtual reality is revolutionizing the real estate industry. With the help of this technology, you may view homes in other countries or in isolated, rural places.
By 2023, analysts predict that property sellers looking for a competitive advantage will increasingly turn to virtual reality (VR) & augmented reality (AR) tools like VR tours and AR graphics. This is owing to a rise in knowledge of these technologies among people of all ages. It is plain to see that virtual reality technology has the potential to help real estate brokers expand their companies, attract more clients, and offer top-notch services.
4. Cloud Computing
One of the biggest game-changers in proptech is cloud computing because it enables real estate businesses to better serve their clients. Employees can access their data while on the road by using servers located in the cloud. Additionally, if necessary, they can backup their files and share the info with other workers.
Assist with marketing
The support it provides in marketing is one of the main benefits of cloud computing in real estate. Through cloud computing, real estate firms and brokers can connect with their target audience online.
Realtors can utilize real-time data to monitor deals and create leads and referrals using analytics tools, while cloud computing software can scrape data from many internet portals and websites.
Cloud computing technologies help with social media management and creating precisely targeted Google and Facebook advertisements for particular demographics. By marketing tailored services, you can also strengthen your brand.
Strengthen Performance with CRM
Applications and software for cloud computing increase productivity and represent a cutting-edge method of conducting business. Therefore, by automating tasks like data retrieval and storage, seasoned realtors can focus on expanding their businesses.
CRM and the cloud
Through CRM services, cloud computing makes it easier for renters, brokers, and buyers to communicate. CRM software fosters teamwork and gives your team access to cutting-edge data. Moreover, CRM systems facilitate smooth communication while enhancing transparency between various teams and clients.
CRM and enhanced Security
The term “cloud computing security” refers to a collection of rules and guidelines that guarantee the safety of all cloud-based activities, data, and IP.
Firewalls, for instance, can be used to preserve authorization and stop data loss. Cloud system features that are frequently monitored and record user activities include antivirus software and intrusion detection systems. Encryption is also utilized to limit access to data.
New and hybrid IT solutions are available through cloud computing to speed up real estate operations. The cloud allows for quicker, more dependable, and secure data transport. Real estate firms can readily expand their operations across national boundaries and geographical areas, proving that flexibility is crucial. For example, instead of keeping data offline and holding meetings in person, cloud computing allows realtors to access data and manage company processes online. Data and information are now simple to access from anywhere.
Having everything they require at their fingertips allows realtors to work much more efficiently. For conventional brick-and-mortar firms, the combination of cloud computing and cutting-edge technology is a big win.
5. Real Estate CRM
The real estate industry is dynamic and prone to change. Project managers must coordinate several tasks at the same time. They must maintain property listings, look for potential clients, make connections, and provide leads and brochures. In addition to this, they must handle & monitor many transactions and execute legal paperwork. The best way to handle all this effectively is with a powerful real estate CRM. Property managers and other real estate professionals can benefit from a variety of features and tools provided by property management software.
Automation and Integration of processes
CRM systems facilitate the automation of business processes, enhancing the effectiveness of operations and enabling on-time completion of tasks. The ability to integrate CRM software with various Multiple Listing Services will enable you to automatically import listings for client portals, email marketing, and presentations. Everything from viewing and managing property information to managing real estate referrals, reviews, and other data linked to properties is available in one system on a single page.
Sales management
CRM keeps track of all customer-client interactions, enabling you to study customer behavior, provide the best offers, and gain their loyalty. At every stage of the sales cycle, you can keep an eye on the pipeline. With the aid of reporting tools, you can identify potential issues if you believe that important metrics are not as promising as you thought.
Marketing management
In the real estate industry, CRM is a potent marketing tool. You can coordinate all marketing efforts by organizing marketing events, managing resources, and setting budgets. CRM software systems can also help with marketing campaigns.
Product portfolio management
It’s critical to offer premium properties at reasonable costs. Property managers can gain a distinctive perspective into the lives of their potential clients thanks to property management software. Such software enables firms with various sales and service channels to synchronize information flow, making it suitable for them. They can easily keep track of property information, directions, dates, addresses, and much more.
Workflow and time management
Utilize CRM tools to effectively manage your work and time. For example, you can sync your real estate day planner thanks to automatic reminders. These automate repetitive lead, invoicing, and other lead-related chores.
CRM software should be the star of your real estate show. Customer happiness and retention are the most important business metrics significantly impacted by CRM, according to Capterra. This magical software has a ton of other capabilities that you can use to communicate with customers and develop lasting business partnerships with your leads and contacts. According to Salesforce, companies who adopt CRM have a 29% increase in sales, a 34% increase in sales efficiency, and a 42% improvement in sales forecast accuracy.
6. Big Data
The real estate industry is continuously getting massive amounts of data from several sources. This information can help firms better understand their customers’ demands if it is managed correctly. The term “Big Data” refers to technology that automatically organizes and understands enormous amounts of data. In effect, agents that use big data real estate software may strategize more effectively and make wiser business choices.
Big data real estate software can be the driving force behind successful social media marketing campaigns. Data can be used to ensure that advertising is timely and viewed by the right audiences. This allows agents to avoid the hit-and-miss method by showing clients the homes that interest them.
Increased Consumer Engagement
Unpredictable customer behavior is a major problem in the real estate industry. As a result, big data can help realtors to better understand their clients and present them with viable solutions by using big data analytics.
Risk Minimization
Using big data in commercial real estate can decrease financial uncertainty. Businesses assess a variety of criteria using predictive analytics tools, including the age and condition of the building, its reconstruction history, information on the current owner, etc. Such information allows organizations to assess the property item and provide customers with up-to-date information about their needs.
Automated Valuation Calculation
By applying Automated Valuation Models, real estate firms can now calculate a property’s value with great accuracy (AVMs). The company’s technologies gather information from millions of international listings and provide rough estimates and approximate numbers for house appraisals. These projections help the investors provide more accurate quotes that can result in a profit. When there is not enough recent transaction data to make a pricing approximation, AVMs are helpful. For example, if a property investor searches for information in a neighborhood where recent sales data isn’t available, AVMs are a good place to start when figuring out the worth of the properties. An investor may decide to define criteria for estimating a property’s worth as a result.
7. IoT
The “Internet of Things” (IoT) is the idea that common physical objects can be interconnected when they are connected to the internet. As a result, IoT devices and sensors create a network of intelligent devices that can communicate with one another.
The first devices to connect to the internet were computers and smartphones. Linked appliances like smart TVs, refrigerators, smart alarm systems, cameras, audio systems, and lightbulbs are increasingly standard in our homes. Now, realtors have the chance to engage with customers and renters to better control smart homes and gadgets. Also, property managers can keep an eye on the property thanks to the usage of IoT technology.
By 2023, it’s expected that there will be more than 43 billion connected devices. They will produce, exchange, gather, and assist us in using data in a variety of ways.
IoT in real estate
Homes with embedded IoT sensors are quite popular. Intelligent homes, offices, and even warehouses are in high demand. Large corporations and tenants of shared properties want to work and live in energy-efficient settings. Therefore, maintaining environmental control and cutting expenses are crucial. Adopting smart home technologies not only make a property more comfortable and energy-efficient, but they also raise its value.
Imagine a future where homebuyers are able to download a whole history of a home’s maintenance records from smart devices attached to the plumbing, electrical systems, and HVAC. This will give a clear history about a house’s condition and eliminate spending on pricey inspections. These kinds of appliances may result in significant cost savings for the house buyer while also assisting with energy efficiency.
According to the Real Estate Benchmarking Survey, 73% of CEOs have already included IoT in their business plan. Additionally, 43% of US building owners assert that the Internet of Things will alter how they handle property management.
Conclusion
For those working in real estate, the future seems promising. It’s time to acknowledge the demand for the most recent real estate technology and manage current procedures in a way that incorporates them into all real estate activities. With the use of new technology, the real estate industry has upped its transparency and maximized its efficiency. Peter Williams, CEO of Deloitte Digital wisely said, “Real estate agents will not be replaced by technology but by agents with technology”.
