Eventually, every industry will have to embrace the significant technological advancements of this century or risk being left behind and replaced. Reliance on the physical may make the real estate industry seem old fashioned on the outside, but there have been significant tech developments that have transformed the sector, and many more to come.

So, why has the real estate industry shifted towards a more virtual future and what will that look like?

“Proptech” Advancements

Proptech has made real estate one of the most interesting advancing sectors in the world, while also providing many of the tools that have helped it avoid complete disaster during the coronavirus outbreak.

The term refers to technology that applies information technology, machine learning, and economic thinking to the world of real estate, with the aim of assisting customer decision making and promoting properties.

In practical terms that means technological advancements such as remote house viewing and deeper learning programs that allow potential buyers to analyze the predicted value of the property they’re interested in buying.

The creation of such technologies has pushed the real estate industry towards more virtual practices, with numerous consumers preferring to use them to get a more holistic view of a property and the reality of purchasing it.

Virtual viewings and property showcases produced by companies such as VR Global have allowed potential buyers and renters alike to assess properties from the comfort of their own home or a real estate office.

Throughout the coronavirus pandemic, this has allowed the market to keep moving somewhat and made sure people don’t miss out on the chance to own their dream home.

Prior to that though it allowed people to envision life in these properties even if they were moving from out of the country or overseas. It made buying a property a more accessible and easier process for everyone.

The same technology has been used to help landlord and real estate agents talk tenants through the process of using utilities at the property, something that previously has to be cumbersomely managed through emails and phone calls.

Of course, this is just touching on some of the most well-known examples of proptech advancements, which are seeing development and investment every day. However, it shows just how considerably technology has advanced within the sector, and how the consumer’s thirst for information about properties and their surrounding area has driven necessary evolution.

Simple Startup Solutions

In the simplest terms possible, most technology exists to enhance and simplify people’s day to day lives.

Technological advancements did not appear out of thin air, they were birthed by a desire to improve the efficiency, effectiveness and enjoyment of a task or activity. It exists to both give us more time to enjoy things and more things to enjoy. In the 21st century, many of these simple solutions have come from startups.

The real estate industry is no different, becoming very familiar with innovative startups looking to disrupt the conventional process of one of time’s oldest purchases.

Buying a house is full of exhausting and complicated tasks that make the process significantly longer than it needs to be. To help get more buyers through the door and speed along what can be an agonizing wait for a new home, the industry is embracing new technologies.

One of the most common examples of this is the use of machine learning to help buyers and sellers alike find the best representatives, deals and prices available. Startups like online mortgage broker Breezeful are a great example of this, taking what is usually a difficult and hard-to-understand process for many buyers and handing the responsibility over to machine learning technology and industry experts to make an informed decision.

The industry is becoming more virtual because the leading minds leading the charge are willing it in that direction. Companies that don’t offer these additional services powered by VR or AI risk falling behind.

Customer Preferences

Like many industries, customer demands have driven the push towards technological advancements in the world of real estate.

The rise of VR usage in property showcases was largely driven by a desire from the customer to get a better look at the property, even if they couldn’t physically get to it. Nobody buys a house in the dark, so the industry has turned to virtual solutions.

In some cases, proptech offers first-time buyers who would previously not be able to afford a home the opportunity to get on the property ladder. Collective ownership and equity loan boosts from unique industry startups appeal to younger buyers struggling with the fractured nature of the market.

Our busy lives coupled with the competitive nature of the housing market mean people also don’t have the time to try and find the right house through conventional methods. Search portals for properties are the most convenient way of finding a new home for many buyers and renters, but even then you have to act extremely quickly to acquire one. VR and startups disruption the conventional process appeals to the average millennial buyer working potentially two jobs and trying to balance an active social life.

There is seemingly no stopping the rise of virtual and technological integration into real estate practices. While this may not appeal to more traditionally minded professionals, customer preferences and the rise of industry-disrupting startups pushing new innovations means they’ll have to keep up or find an alternative way of drawing people to their brand.

Why The Real Estate Industry is Becoming More Virtual? by Kayleigh Alexandra | Mention Me