By Grant McDonald
Disruptive innovation has shown to be the most effective method for businesses in any sector to remain relevant in the marketplace. To this aim, savvy real estate executives are embracing new technology. Real estate is aggressively trying to make up for being among the last industries to adopt automation by embracing the most popular and trusted tech trends. If a company uses artificial intelligence (AI) and machine learning, it's more likely to get financing.
Thanks to real estate platforms, financial investments and new model features that keep popping up, this sector is now at its peak. The urban population will have grown by 75% to 9.3 billion people by 2050. As a result, real estate platforms will grow in popularity and development, so consider this list of tech trends that real estate is shifting towards in 2021:
1. Sellers' Bridge Solutions
The development of seller-friendly bridge solutions is a game-changer. For decades, buying your new house before selling your current one has been a significant roadblock for prospective sellers. Bridge providers function in all 50 states; such new disruptors will have a greater effect. Bridge solutions may be used by agents while still being compensated.
2. Rental Management Software
As much of your rental administration as possible should be done online. Rental management software saves time by automating a variety of formerly laborious processes. Automation leads to cost savings, and cost savings lead to profit.
3. Contact-Free Experiences Assisted By Technology
Consumer expectations have changed, with many people looking for short- or medium-term rentals that minimize human contact. Keyless entry systems and other tech that enables contact-free experiences will grow more popular. This is especially true in aparthotels that have no communal spaces and offer in-unit facilities for longer stays, like dishwashers and refrigerators.
4. Text-Based Interaction
In terms of volume and response, text-based interaction is unrivaled. While in-person or over-the-phone introductions are always more successful, the ability to reply to texts quickly (within five minutes) at scale is a competitive advantage.
5. Reduction of Carbon Footprint
Technologies that help commercial properties reduce their carbon footprints will keep developing as both the U.S., and the entire world, strive to fight climate change, especially in the wake of any comprehensive policies implemented by the next government. Real estate is a major contributor to climate change, and more public and private sector incentives to improve energy efficiency are required.
6. Intelligent Access Control
The most important investment property owners can make to make their buildings more efficient is smart access control. As a property manager, it opens up a plethora of savings possibilities, such as:
- Intercom calls with two-way audio and video
- Built-in access control
- Calls may be answered using your phone or your browser
- With the help of a smartphone app, you may unlock the door remotely
- Works for single-tenant office buildings, multi-tenant commercial spaces and residential structures
- Manage numerous doors and buildings from a single location
- Sleek, well-designed hardware that enhances any building's appearance
7. Blockchain's Expansion
Although blockchain as an emerging trend is still in its infancy, it has the power to reshape the sector substantially. The real estate industry's soul is data. However, data is often inaccurate due to the high number of social bonds that touch it and the often subjective assessment of evaluation. Some of this information can be recorded in a single source using blockchain.
8. Fintech Firms Transforming the Real Estate Industry
Financial technology (fintech) seeks to compete with conventional money lending techniques. It's a new industry that leverages technology to help people manage their money better.
Fintech makes it simple for buyers to connect with the finest lenders and get a property loan to fund their purchases. Not only does this software make getting a house loan simpler and faster, but it also makes paying off a home loan easier and more efficient. Fintech firms are altering the way financial financing is done in a variety of ways, which is proving to be advantageous to the real estate industry.
9. Data Gathering and AI-Driven Marketing
AI is the paradigm of real estate marketing and data collection. Over-reliance on incorrect data, which might be thrown into the mix and distorted findings, would be a warning. Although verification is always required, the tech's reach and efficiency are astounding. Those who do not use AI will be left in the dust with buggy whips.
10. Machine Learning Is Getting More Attention
Machine learning has always been the game-changer. Manual information gathering and spreadsheet estimates used to take months to achieve the perfect location to invest in. This procedure now takes minutes thanks to technology that enables you to input large data into machine learning algorithms to give extremely accurate predictions to investors.
12. Valuation Models That Are Automated
Automated Valuation Models (AVMs) are quickly becoming the accepted valuation norm. With this in mind, agents must adjust to utilizing both conventional comps and AVMs in their assessments for both listing and purchasing side price models. AI is here to stay.
Traditionally, the real estate market has been mainly organized, but new tech advances have transformed the sector, making it more accessible to individual investors, efficient and dependable for clients. These advancements will aid real estate in flourishing in this technologically-advanced world and securing a comfy position in the market.
The real estate sector needs a solution that really can stand out in the crowd and compete in the global market to ensure a superior real estate solution. You'll also need to keep up with real estate application development trends and forecast the industry's future.
Grant McDonald has more than three decades of experience in the real estate industry and more than a decade in the real estate finance space. He is currently VP of Corporate Development at 14th Street Capital, America’s premier hard money lenders for real estate investors.