According to one recent study, “44% of new homeowners find information online first about buildings for sale and 73% of buyers are using mobile or tablet search devices for their purchases”. The real estate industry, though one of the last markets to enter the digital age, now has to keep up with the expectations of the buyers and widen their horizons to envelop and develop the latest technology trends.

There are many aspects of technology that affect the real estate market, as the estate agentsin UK will agree. We focus on 5 technology trends that will have an impact in 2022.

AI - Artificial Intelligence: There is a vast range of data in real estate which needs to be analyzed to become more aware of customer needs, trends in the property market, realistic valuations, investment risk, etc. To manually process all this information is time-consuming. Artificial intelligence steps in to process the stored data and also offers important insights from it. It can recommend properties suited to the buyer’s needs, leading to a satisfied customer. With the use of AI-based chatbots, agents are able to connect with their clients 24/7 to address any queries. AI simplifies transactions, such as OCR (optical character recognition) technology, which extracts data from various sources and converts it into a machine-readable form used for data processing. This way, more reliable market forecasts are available with almost accurate information about the prices for buying and renting houses in different areas. For businesses looking for long-term leasing of space, AI can offer the best options.

MR (Mixed Reality Technology (VR - Virtual Reality and AR - Augmented Reality):

• MR technology is a combination of VR and AR. This immersive technology in the real estate industry can transform how properties are analyzed, transacted and marketed. With lockdowns enforced during the pandemic, virtual viewing of properties had to be done, as physical inspections were not allowed. This led to more people depending on virtual access. AR technology is used to stage properties, based on the clients’ taste and enables estate agents to show different setups to various prospective buyers, enabling them to envisage the property. MR technology saves so much time on locating, researching and visiting places. It can find and access properties, including a view of the neighbourhood amenity map, without the buyer having to leave his/her home. It can help prospective buyers visualise architectural designs by offering photorealistic plans of the floor with 3D renditions.
• Drones: In addition to VR and AR technology, drone technology has been introduced to view perspectives of a property that was earlier not possible. An aerial viewpoint makes a buyer more informed of the utility and attraction of a property, thus helping him/her to reach a quicker, informed decision. Property maintenance is one aspect helped by smaller drones that can move and inspect hard-to-reach places to check for flaws. This facility enables monitoring and maintenance planning.

IoT (Internet of Things) and BMS (Building Management Systems):

In this fast-paced life, convenience and quick access are two important factors.

This is where many types of IoT gadgets and sensors help. They are now found in the various systems within a building and can be attached to any equipment to monitor the power quality:

• Voice and speech recognising sensors allow communication and control of smart devices in an office or home,
• CCTV cameras and motion detectors enable monitoring of the physical environment,
• Devices monitor electricity usage, water pressure and others,
• IoT data can formulate a digital twin (a virtual model which accurately reflects a physical object) which can be used to study the current condition of buildings (existing and potential damage, date and place of repair), fire escape plan and environmental conditions that can be withstood. This offers insight for generating improvements which can then be applied.

BMS, on the other hand, has data on the major operational equipment in a building. It controls systems such as energy management, ventilation, air conditioning and heating. By sensing the air temperature of a room, it can adjust the temperature automatically based on the tenant’s comfort, before he/she arrives. It is useful in space management, especially in commercial properties. By monitoring foot traffic, it identifies the space where people are working. In these post-pandemic days where social distancing has become a norm, it helps reduce congestion in workplaces.

PMS (Property Management System) software:

To efficiently manage the various documentation and property regulations, it has become essential for PMS software to be introduced into real estate technology trends.

• Property aggregate platforms: Most estate agents have websites online, where their listed properties are viewable by prospective clients. Aggregate property details from various sources are listed on the platforms. Solutions are offered for different options, including selling, buying or renting property.
• Crowdfunding and co-investing platforms help people invest small amounts of finance.
• CRM (customer relationship management) cloud-based platforms enable agents to interact with clients and keep track of them, ensuring that the related documentation is secure.
• PaaS (property as a service) platforms focus on the customer approach so that tenants’ requirements are met for using the building and services provided.
• Tenant experience platforms enable communication between the owner and tenant through a dedicated line.

All these platforms, being cloud-based and easily accessible, have important data available literally at their fingertips!

DS (Data Security): With increased technology, huge amounts of data need to be collected and stored. This information - personal data of residents from smart devices, property documentation, transaction data - needs protection. Now, software solutions are being offered to detect cyberattacks on buildings, encipher collection of data by Iot gadgets amongst others.

Blockchain, as one expert put it, “is a super-secure way of recording transactions, contracts and transferring data”. It keeps the data secure by way of tamper-proof blocks of nodes. It also benefits prospective buyers in reducing their expenses, by cutting out fees levied by third parties (banks, solicitors etc) with smart contracts that store transaction data and are signed digitally between the buyer and seller once conditions are met. It reduces paperwork and makes the transaction clear and secure. Blockchain also offers tokenization, where people can invest small sums in real estate by securing tokens which in turn helps access real estate investments.

Conclusion: Technology is ever on the increase and all industries, including real estate, are embracing the different forms to enhance their efficiency and productivity. With this spurt in technology, we are sure that buyers, sellers, tenants and investors will benefit from the new opportunities offered by the real estate market.