8 Hottest Real Estate Technology Trends in 2024
2024 is expected to become the year of innovations in real estate. The important fact about the industry is that it was behind the other business sectors to adopt tech innovations. The reason is simple, people are reluctant to change something that works well, and it did work well. However, the real estate market players start feeling the taste of modern technology usage and enjoy the benefits of real estate tech. At present, the global real estate technology market is expected to reach $12.9 billion by 2025.
The real estate industry is a major ingredient in the global economy pie, and its overall value exceeds $7000 billion. Today we are going to see what it will look like and to check the vital real estate technology trends worth keeping an eye on in 2024. It’s high time to start implementing them for businesses that are eager to stand out among the rivals in the market.
So, let’s move on to the latest real estate technology trends and their benefits.
PropTech: The Major Change in the Real Estate Industry
Proptech stands for “property” & “technology”. It is also known as REtech for real estate technology or CREtech for commercial real estate technology. It links technologies, like mobile solutions, cloud computing, AI (artificial intelligence), and IoT (the Internet of Things), to craft innovative products for real estate. The solutions are focused on inspiring individuals to purchase, handle, sell, or rent real estate, and modifying the way it’s done.
Certain areas of PropTech are being highly funded. They are:
- Construction tech — construction costs, timelines, and activities optimization.
- iBuying — property sales via instant all-cash offers.
- Mortgage lending — digital platforms that accelerate financing creation.
- Co-living spaces — combining housing with community living and flexibility.
- Property management — cost-saving and improved tenant experience through automation.
REtech solutions can help you with smart homes’ temperature control. They offer data-driven property management systems, smart security systems, smart lighting systems, virtual property tours, business process automation, and much more.
CREtech is revolutionizing the real estate industry helping businesses improve their services, enhance proficiency and quality, and minimize costs.
In 2024 the industry is not going to slow down. New generations of realtors and customers opt for smart solutions, enabling more convenient living arrangements and foster rentals.
Integrated Tech Platforms
Integrated, all-in-one solutions for agents to enter the scene and work up the market. They streamline efficiency from property searching to closing deals. Such platforms enhance marketing activities as well. The solutions develop into a kind of business suite that motivates agents to focus more on building relationships. That’s what matters. While admin tasks take time but draw attention from lead generation, relationship building, and home selling.
Personal connections and communication are the keys to effective lead generation and sales. So, by adopting an integrated tech platform, an agent can build the relationship and execute it consistently. Consider this real estate technology trend as the key to building business processes in 2024. You can consider developing a custom platform for your business or as a third-party service for the companies needing it.
New Models and Creative Ownership
The sellers are actively looking for new models of engaging the clients in and exiting homeownership.
The short-term rental market generates some innovative models. After the pandemic and work-from-home culture expansion, people, especially in certain regions, were left with homes vacant and not bringing income. So, third-party platforms dealing with rent and so-called gradual ownership emerged.
Today’s high-interest rates make it impossible for many homeowners to cope with the monthly payments for mortgages. So, creative ventures appear in the residential real estate domain that allows homeowners in rough times to convert the equity they have into shares via exchange. Thus, the sellers can still expect equity gains even moving on from the home.
Real estate crowdfunding platforms are gaining popularity. They allow people to become investors and customers.
An innovative method where several parties share real estate asset ownership is called fractional ownership. It grants each contributor proportional usage and responsibilities. Especially popular, this approach is in vacation destinations and luxury property markets. High-end assets can be purchased and used at a fraction of the cost. More than that, such an owner doesn’t have to bear the full financial burden but deals only with a proportional part.
Tech Focus on Empowering Teams
Teams are more effective in the industry today. More than that, branding, showing, marketing, and lead generation solutions are quite expensive and may not be suitable for a solo agent.
At the same time, team formation makes sense. Each team player can then focus on what they are good at to win more deals through specialization. This trend is going to expand in the years ahead. So solutions for real estate agencies and teams will have the call in 2024 and Stfalcon can help you catch this trend.
AI and Automation
The immersion of AI incites a pivotal transformation that may redefine the overall dynamics of the commercial market. So, AI can be called a key driving force opening an era of sophisticated, data-driven decision-making in commercial real estate. AI can streamline many aspects in the sphere of residential real estate as well. However, it is unlikely to substitute the emotional aspect of the deal. We believe transactions in real estate are much more than just a financial deal when it comes to buying a home to live in.
While the automated tools can handle routine tasks, agents can more effectively focus on the human aspect.
Anyway, to provide improved insights and speed in detecting lucrative opportunities, AI can be incredibly powerful for your business to stay ahead of the curve. It can be integrated into various intelligent solutions to manage existing infrastructures, forecast market trends, and deliver the utmost value to clients.
Lots of real estate companies and agents already offer their clients virtual tours of their properties. Time is money, and virtual tours allow customers to watch properties from anywhere worldwide. So, one can choose without visiting all the properties.
IoT and data technologies allow us to create a digital twin of the property with all its features. Additionally, such a feature allows the customers to understand the condition of the building and predict how the house will hold up against different environmental conditions.
So, immersive technologies allow us to visualize the real-life experience with the power of VR or AR. As a real estate professional, you can not only help your client make a better-informed decision but enhance your customer service with the help of technology.
More than the digital models of certain areas and even cities can also be created to explore the area and infrastructure. Las Vegas, for instance, unveiled a digital twin of its 4.3-square-mile downtown.
According to some estimations, the AR/VR market will reach almost $80 billion by 2025. A big share of it will belong to the real estate industry.
That’s not all, VR and AR can be used by architects, engineers, and builders as smart building technologies. They allow the creation of a potential project 3D model before allocating resources to build it. It will allow builders and investors to validate ideas before investing and initiate the construction faster.
Building Management Systems (BMS)
One of the latest real estate technology trends, BMSs -building management systems. Real estate companies can monitor and control the physical environment of a building with the help of such software solutions.
Such property metrics as temperature, lighting levels, humidity, air conditioning, state of a security system, and much more can be monitored in real-time. BMS can turn ordinary homes into smart ones. They can adjust the temperature in the room, turn the heating lower when nobody is at home, switch the light off in an empty room, and much more. It will result in more efficient resource usage.
A BMS can be used for property management automation. Such tasks as scheduling maintenance procedures, controlling the flow of people, etc. By monitoring the physical environment of buildings in real-time, one can detect certain issues before they become serious problems and solve them. Automating management tasks, BMS can free up human resources that may be used elsewhere in the company. Thus, not only saving time and money but potentially increasing profit.
The technology can help provide a more personalized experience for potential property customers. Thus increasing their satisfaction and consequently loyalty.
Drones and High-Tech Devices
Drones are progressively used for collecting high-quality aerial images of a property for a detailed and in-depth analysis of it. All types of real estate listings can benefit from drone usage. Vacant land, residential homes, apartments, resorts, and commercial properties can be filmed by drones. The modern cameras can capture videos and 360-degree panoramas. It offers transparency and the necessary details for potential buyers or renters of a property.
Let’s deal with some of the most popular questions arising in the context of real estate technology trends.
Speaking about real estate, we can’t but mention our experience. Stfalcon has carried out several projects for real estate and related spheres.
One of the cases to mention is developing a website for Oazis shopping mall. Our team created a comprehensive UX/UI in Figma with all the client's business requirements considered and then developed a website. Now, the client can update content and add new landings by themselves.
We also started a big project for a US customer in 2022 that was aimed at creating a competitive platform to serve users interested in real estate as well as agents.
We had to accurately explore the US real estate market, and the peculiarities of real estate agents licensing, and developed an MVP. The next step was creating web and mobile applications for marketing purposes and to facilitate agents' work. The work on the project is still going on.
Which real estate tech trends require relatively low investment costs?
Every trend can vary in complexity and implementation, custom business solutions are traditionally the most expensive. However, to give a start and go with the tides of the real estate industry, one can start with online listings, basic property management software, and analytic tools that you can purchase subscriptions for.
Virtual tours can also be an affordable option, as well as online lease signing.
How will the real estate technology trends impact the industry in the long run?
Some technologies come and go, but there are the ones to stay with us far beyond 2024. It goes now about predictive analytics tools, IoT, and AI. The real estate industry is going to get significantly disrupted through the adoption of new technologies and continuous development.
In the long run, the implementation of tech innovations will result in greater transparency in the industry, becoming at the same time more responsive to the demands of the market. The industry will become more client-centric, while the customers will get more opportunities to make data-driven decisions as a result of the latest real estate technology trends implementation.
How is AI being used in real estate?
AI has the potential to enhance the real estate industry in several ways. The major uses of Artificial Intelligence usage in real estate are:
It’s the most practical and the most common usage of AI. The estimated value of a property is often AI-based predictive analytics. Such forecasting is vital for agencies, economists, and investors to predict and purchase property at the right price to win.
Visual models are becoming increasingly important in real estate. AI-based computer images and digital twins allow users to see the sights digitally.
It helps to increase the pool of potential customers, allowing anyone with a connected device to look at the property, no matter what part of the world they are in. The technology also allows the creation of images of properties that don't yet exist but can be implemented and constructed with preliminary cost estimates with different designs.
Proptech is a fast-growing niche in the real estate industry, focusing on the devices that help homeowners and landlords monitor their properties remotely. These include smart doorbells, locks, thermostats, cameras, and many more smart home devices notifying users of any conditions or problems inside the property.
AI helps to screen tenants, collect rent, and schedule maintenance.
AI chatbots are used for customer service while automation through AI can also help with managing workflows, report generation, market analysis, and payment processing. It helps improve occupancy and operational efficiency.
The financial sphere is also adopting AI to more effectively analyze borrower details. Employment history, income, and credit scores help to evaluate risks and set the best rate to charge.
Artificial intelligence can automate loan servicing, and detect and prevent fraud.
Certain technologies and trends come and go, others remain for a long term. To rank high in the market, you should catch the tides and be one step ahead of your rivals. Choosing the right vendor for your software solutions development is the key to staying ahead of the curve.
If your business operates in the real estate domain, now is the right moment to consider the market and the latest real estate technology trends and start implementing them. Our team is ready to take up your project. Let’s discuss all your concerns together, just contact us.