From politics to pandemics, the Globe has seen relevant changes in 2020, & the sector of real estate is, for sure, no exception. With 2021 just around the corner, a lot of people in this industry are thinking, what’s next? As summer turns to autumn and then winter, we have come to the end of 2020, a clamorous year, with the change, unlike anything we have witnessed before in our lifetimes. Now, Real Estate Tech is emerging as the strongest force here and winners in the sector will be the ones who embrace the collision of technology and real estate. Technology has always been associated with real estate, so the question is how modern technology will bring actual breakthroughs to the industry of real estate in 2021.
In this regard, check out these famous trends for convergence of technology with the Real estate market coming up next year –
1. Generation Rent:
Freedom & Flexibility – On the surface, renting looks like a less-preferable option as compared to buying & owning the property. So, why pour bucks into rent when you can pay it towards your mortgage? However, for several young individuals, renting is a more appealing option with better adaptability. The last decade’s financial disruption i.e., stagnant wages and recessions etc., blended with an enhancing undetermined job market, has made the younger people wary.
A majority of young people on the ladder of the Real estate market are only capable of affording the deposit with monetary help from family or years of Spartan living and saving. The capability of raising sticks and moving elsewhere offers young people freedom, & any future monetary crash won’t affect the assets, including property. Indeed, even for those people who don’t wish to purchase the property, soaring deposit rates imply this is out-of-reach for various young workers. Now, a lot of online portals are out there in the market through which you can directly contact the landlord, avoiding the hassle of interacting with the middleman first.
2. Property Search Engines and Online Mortgage Brokers –
A lot of tech enterprises and start-ups have turned the attention to the sector of real estate. Usually rife with protracted procedures and red tape, these firms turn what is the notoriously stressed tragedy with a smoother, streamlined process. In the same way as the other comparison websites, the online mortgage broker provides buyers with a chance of trawling the number of distinctive lenders for finding the most competitive, best mortgage price.
Even the procedure of looking for a property in the first place has been transformed through technology. Using the property sites is among the best Real estate trends to watch out for in 2021. They effectively act as the property search engine, allowing potential buyers to filter houses & apartments in their preferred area as per bedrooms, price, along with amenities like garages or fireplaces. These 2 are certainly the tip of the real estate technology iceberg.
3. Smart Buildings –
At a first glance, it may look as if smart house technology is a luxury, particularly if you are talking about the rental industry where the aim is always to make a profit from the owned or managed property. However, it is just untrue. Smart houses are beneficial for both landlords and renters, for many reasons. Wondering how and why is it one of the much-preferred Real estate trends? Well, the renters’ new generation is on the lookout for comfortable yet simpler solutions which it offers.
The smart systems are taking the safety burden off of the renters’ shoulders. Continuous monitoring of the utilities & automated maintenance decreases administration prices which, ultimately, decrease the rent, making the property more attractive and affordable for potential renters. Also, the smart property management systems permit landlords for managing property even when they are abroad. No key in your lockbox? No issues as with just a few clicks on your smartphone & the tenant can enter.
4. Virtual Reality –
Among the biggest technology trends in the real estate industry is VR (Virtual Reality). A reason why VR enhanced in popularity is because of Coronavirus, while in-person house tours were not permitted. Ever since Tech in real estate in the form of VR started to appease the clients due to its ease-of-use and convenience. Thanks to its popularity in 2020, its usage will consistently increase in 2021 as well. Now, let’s give you a little preview about what is Virtual Reality exactly.
It refers to the computer-produced simulation. Within this simulation, the users can explore & engage in the artificial 3-D environment. Wondering what are some of the benefits of utilizing VR in the housing industry? First and foremost, it is the way for real estate agents to market the properties with a bit of real estate investment. Also, it permits agents and sellers for creating exceptional 3D house tours.
5. The increased popularity of Big Data –
When it comes to the entry of tech in real estate, how you can forget about Big Data? It is the technology that automates the analysis of massive amounts of information from several sources. Practically put, it supports to optimize capital resources, times, & deliver the more accurate outcome deprived of the human factor. For the industry of real estate, it works as a multi-purpose solution. For explaining it in detail, let’s say that you wish to buy or rent an apartment & have a couple of alternatives.
The technology of Big Data will assist you to compare those real estate objects through various parameters and then will choose the most perfect one(s). This saves you time while on the lookout for a new house. In the real estate sector, Big Data assists to decrease capital risks. It has proved to be a hugely helpful tool for the Real estate after a pandemic as it analyzes the object’s condition, information of the owner, renovations, as well as reconstructions performed before.
6. Virtual Assistants will pick up while you can’t –
The AI-powered virtual assistants have become the powerhouse tool in 2020 for the leasing agents and real estate agents. While you can’t pick up your phone or answer the online chat, this is where the virtual assistant can step in. Undoubtedly, time spent online and internet habits have drastically changed this year. In March 2020, web usage was enhanced by 25% & people are notorious online for their reasons after 5 PM.
With the round-the-clock virtual assistant (usually known as the chatbot), you don’t need to miss the beat. In 2018, Gartner assumed that by this year alone, 30% of every B2B company would employ AI for augmenting a minimum of 1 primary sales procedure. With the help of chatbots, that refers to lead generation. Now, in the scenario of the Real-estate after the pandemic, virtual assistants will play an inevitably important role for a smoother sale/purchase process.
7. People’s inclination towards the Internet of Things –
IoT implies those apps and devices which get digitally connected to the cloud & are continuously receiving and sending information. This technology trend’s adoption in the real estate sector is the ultimate game-changer. It is due to IoT that you can imagine the universe of “smart properties” which smoothly blends with the virtual and physical world. As per IoT analytics, the international IoT sector that was worth $150 billion in 2018 is assured to boost by $1.5 trillion by 2025.
In turn, the market size has resulted in a boost in the number of IoT gadgets active internationally. So, this technology is used in the sector of Calgary real estate for creating an unsurpassed comfort level for the customers. House devices will have a smart sensor for predictive maintenance by alerting property owners or managers about possible issues. In Proptech, IoT can enhance energy efficacy & can support property owners in saving bucks.
8. Real Estate experts will exchange the furniture rentals for virtual staging –
A critical marketing piece in the industry of real estate is staging. Now, it is not tough to state why. People like to imagine themselves in the new space, whether it is the new home or office space. According to the Mortgage Reports, staged houses sell 73% quicker, & more often than not, they sell for more bucks. Now, let’s talk about virtual staging in Calgary real estate sector.
It is the staging that is thoroughly digital, along with photorealistic virtual decor and furnishings. Imagine it as the hybrid of renderings and photography. In fact, as per the current statistics of virtual staging, it is a way better investment. Along with cheaper upfront prices, it is more inexpensive generally as well, while also offering you more bang for your buck. It is predicted that in 2021, you will witness more real estate experts budgeting for virtual staging just because of the time it saves, and the innovative freedom it offers.
The technology convergence will transform the industry of real estate as the several stakeholders mature in the journey of technology adoption. Those market participants, who have the foresight and resources for investing in technology, generate value from the data & adjust themselves to the continuously altering landscape. Now, this could offer them a winning edge in the real estate evolution’s next phase, specifically as generation Z steps into the environment as customers of the real estate solutions.