Published on February 4th, 2021 | by Luke Fitzpatrick0
Here Are Some Innovative Tech Trends Shaping The Real Estate Industry
There have been many innovative transformations and technological advancements in almost all industries, but PropTech has been shaping and changing the way that everyone buys, sells, and manages properties. With that in mind, here are some of the key trends in PropTech that all agents must be aware of in 2021.
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Accelerated digital transformation
Compared to many other industries, the digital transformation for real estate, property managers, and estate agents has advanced relatively slowly over the last few years. Many of those lagging behind had no choice but to adopt the advancements in technology when the pandemic struck in 2020.
Because this is only a recent adoption of digital PropTech, it will cause the property sector to embrace PropTech as a whole.
AI and machine learning
From problem-solving, decision making, and pattern recognition, to comprehension and evaluation, artificial intelligence and machine learning can be leveraged to perform a wide variety of sophisticated, complex, and important responsibilities.
AI and machine learning can be used within the real estate industry to streamline client data and use recommendation algorithms and applications which suggest properties based on the identified preferences of clients. The software can also be used to automate time-consuming and repetitive core tasks, in order to generate intelligent insights, deliver actionable responses, and make adjustable recommendations, within the scope of property management.
Smart homes and apartments
The latest advancements in technology have been making many homes smarter. Now, these intelligent systems can use their IoT access for things like improved building management or upgraded facilitation of surveillance. But for these smart devices, cameras, and sensors to be connected around many properties, we are going to need considerably more reliable access to the internet than required for our current technologies.
These devices will all need access to use 5G data if they are to capture and transmit high definition video, audio, or images anywhere via the internet. As the real estate industry focuses on creating more sustainable PropTech solutions, these utilities will ultimately become embedded in many property management services over the next few years.
Both property management and real estate industries can uniquely benefit from big data technology. This PropTech is used to collect and collate large amounts of data from a variety of sources in order to analyze, automate, and manage it. Data can be collected regarding anything at all, from property trends for specific local areas, price ranges, demographics, traffic, etc in order to offer valuable insights.
This data can then be delivered to optimize resources such as time or finances, or it can be used to compare other parameters to help decide the most suitable outcomes. And the more information that agents and managers have access to, the more data-driven assessments they will then be able to make.
Because blockchain technology is similar to cryptocurrencies like bitcoin, it can be used to ensure financial records are correct by verifying encrypted transactions are legit. That’s because the blockchain is used to securely store data regarding financial transactions as well as a registry for important digital documents like property titles and contracts.
Blocks of data are encrypted cryptographically and then connected chronologically in a chain, with each one connected to the one before, so they can’t be altered. Blockchain tech can be used to remove excess paper-work in real estate, while also increasing transparency, as well as excluding the requirement of third-party access. As with many other emerging sectors of the PropTech market, there is much potential for blockchain within the future of the real estate industry as a whole.
The events of 2020 were extremely unexpected, to say the least, so hopefully, 2021 will be much more predictable and successful. In order to keep up with the changing real estate industry of today, property managers and agents alike need to understand how to leverage the latest technologies. While advancements in PropTech can provide a path to the future, remember that flexibility is key.