4 Real Estate Tech Trends that 2023 May Bring
The real estate market has long been considered one of the most profitable industries. However, it experienced a recession for some years in a row. Once COVID-19 hit, the market was slowly becoming more profitable and got back on track. Now the space attracts investors and users as well, but it is undergoing great changes.
And one of the few things that allowed the real estate industry to weather the storm in the last few years is the advancements in technology. Whether it is the quality of interaction with customers during the COVID-19-induced restrictions and lockdown, the impact of technologies on the real estate industry has been widespread.
In fact, based on the Technology and The Future of Real Estate Investment Management report offered by the University of Oxford in 2020, 53% of real estate organizations are now investing in technology. This number has raised to 77% in 2022 and will soon reach the maximum.
With 2023 almost around the corner, it will be useful for real estate companies to look at some of the tech trends that are believed to dominate the industry in the new year.
Virtual Reality
Virtual Reality will be a popular technology in 2022. Thanks to its benefits and the use of VR in various spheres, experts believe that this technology will definitely hit in 2023. Both VR and Augmented Reality in the real estate domain are not new trends. However, we saw increased use during the pandemic, where Virtual Property tours have become increasingly appealing.
Even though the health situation is improving every day, people still prefer these virtual tours over visiting the place by themselves, and this trend will only grow in the upcoming years. Since VR is only one of the technologies that are immersive, its use in the form of property tech will continue to develop and grow, whether used for selling properties or renting them.
AI-Powered Analytics
Whether used for determining potential buyers/sellers, creating digital marketing campaigns or identifying listing prices, the use of data in real estate has always been essential. The use of AI-powered analytics is believed to gain even more popularity in 2023.
While real estate investors prefer AI to analyze deals, on the one hand, it can also be used by real estate organizations to understand consumer behavior and offer targeted solutions on the other. AI will also be a valuable element in SEO for real estate to allow marketers to perform data-driven decisions.
According to McKinsey’s research, real estate apps powered by machine-learning algorithms can predict changes in rent rates offering 90% accuracy. AI will also become a useful tool for real estate quantum computing, where the industry is thought to hit a figure of $1,765 million in 2026, growing from $470 million in 2021. One of the real uses is projected to be seen in terms of predicting the value of individual real estate properties, leading to optimized purchasing, selling, as well as investing strategies.
Fractional Ownership
Although Fractional Ownership may not be called a tech trend, it will be powered by technologies in 2023. Real estate tokenization has already started in 2022 but will definitely become more popular in 2023. That is because the growth of several PropTech platforms will increase the need for large investments to participate in this trend.
Real estate tokenization allows companies to turn their properties into non-fungible tokens, or NFTs. Thanks to blockchain being an underlying technology, the trend will lead to verifying encrypted transactions, which have been shown to help in fractional property investment and allow landlords to easily sell their stake in a given holding.
Metaverse
Last but definitely the most interesting tech trend for the real estate industry. Metaverse refers to a digital world where users can communicate, dress up their avatars and even attend concerts. Even though the Metaverse idea isn’t fresh, the real estate industry still needs time to enter this space.
For example, those buying properties will be able to tokenize their homes and place them in Metaverse. Real estate companies will also be able to build their own homes in Metaverse for public gatherings and events.
Needless to mention that investors will also consider real estate startups building interesting Metaverse projects. So whether you want to start your real estate company or already have one, consider investing in a blockchain development team that can help you build a new Metaverse real estate startup to get great funding.
Wrapping Up
Running a real estate company can be difficult. That is because trends in space change rapidly, people prefer online visits, and technology dominates the world. And 2023 is believed to be a promising year for the real estate industry. Knowing what tech trends to expect in 2023 can help you reach the needed heights and stay relevant for years ahead.
