Curious about the next big thing in real estate?
The world of property is changing faster than ever before, with new technology being introduced at an exponential rate, consumer preferences evolving quickly and the status quo being turned on its head.
In fact…
Most agents and brokers are stuck firmly in the past while a select few agencies are already pivoting and repositioning for the real estate trends of the future.
Let’s take a look at what’s next:
- Why AI Is Taking Over the Real Estate Industry
- How Virtual Reality Changes Everything
- The Rise of Smart Homes
- Blockchain’s Impact on Property Transactions
- Sustainable Buildings and Green Tech
- And What All This Means for Real Estate Agency Services
Why AI is Taking Over the Real Estate Industry
Artificial intelligence (AI) is not some niche technology relegated to the far future. It’s already having a massive impact on the real estate sector.
Take a look at these eye-opening stats…
Nearly 90% of brokerage leaders state that agents are now using AI-powered tools in their everyday work.
This technology is helping professionals in all areas of the industry from:
- Predicting property valuations with unnerving accuracy
- Automatically matching buyers with their perfect properties
- Answering customer questions 24/7 with AI-powered chatbots
- Analyzing market trends and pricing data at superhuman speed
The practical application of AI in real estate is a game-changer…
Imagine how much time and effort agents used to have to spend manually searching property listings to find the right match for a client.
These days? AI is doing it in a snap. Real estate agency services that make use of these kinds of tech are blowing their competitors out of the water.
Companies such as The Geelong Agency have made their reputations on delivering a superior client experience by fully embracing innovation.
Buyers and sellers today expect more from their real estate professionals than the tired and dusty offerings of yesteryear.
AI is not just convenient tech that makes an agent’s job easier. It’s about superior outcomes.
AI tools and software are helping real estate professionals close more deals, match people to the right homes more often and not waste time on futile leads.
How Virtual Reality Changes Everything
Go back to when you had to drive to 20 open houses just to fall in love with one property…
Doesn’t seem like that long ago, right?
But now you don’t have to. Virtual reality (VR) is changing the game when it comes to property tours.
Buyers can now visit “walk through” literally dozens of homes from the comfort of their couch. Goldman Sachs predicts the virtual reality market will be worth almost $80 billion by 2025 and real estate to drive a lot of that growth.
Why is this important?
- Saves time and effort for buyers and agents alike
- Allows international buyers to view properties remotely
- Eliminates unnecessary and time-wasting showings
- Enables far more engaging marketing material
The icing on the cake is that property that offer VR tours actually sell significantly faster.
Buyers that can have an immersive virtual experience of a home typically arrive at an in-person showing already knowing if they are interested.
The Rise of Smart Homes
Smart homes have transcended the “cool but niche” phase…
Buyers today expect to be able to remotely:
- Control the temperature and lighting
- Monitor security cameras and alerts
- Track energy use and reduce bills
- Sense daily habits and make intuitive adjustments
Here’s the kicker:
Properties that include these kinds of tech sell significantly faster and for higher prices.
Buyers see smart homes as a major value-add because they offer convenience, safety and energy efficiency.
Real estate professionals with an understanding of this trend will be in high demand as they are able to identify, communicate and position these features in listings.
Blockchain’s Impact on Property Transactions
Blockchain has been the preserve of cryptocurrency investors and crypto bros…
At least until now. In reality, it is quietly transforming real estate deals.
Blockchain makes property transactions:
- More transparent and secure
- Quicker to process
- Less reliant on middlemen
- Easier to verify and track
The most exciting aspect of blockchain is smart contracts. These are self-executing digital contracts that automatically trigger when predefined conditions are met.
That means no more waiting weeks for paperwork and approvals and no more worrying about fraud.
It’s still early days but progressive agencies are already investigating how blockchain can streamline and improve their property transaction services.
Sustainable Buildings and Green Tech
Sustainability is no longer a cool, eco-conscious buzzword…
Today’s buyers are actively seeking out properties with features such as:
- Solar panels and renewable energy
- Energy-efficient appliances and insulation
- Water conservation systems
- Environmentally friendly building materials
It’s not just marketing speak, the stats back it up…
Properties with green certifications sell for premium prices and at a higher rate because buyers know sustainable tech means lower utility bills and higher long-term value.
Real estate agents and brokers who are able to identify, understand and communicate these features are going to have a huge competitive advantage.
PropTech Market Explosion
The property technology market is exploding.
Industry data shows the global PropTech market was valued at $33.57 billion in 2023 and is expected to grow to $133.05 billion by 2032. That’s a compound annual growth rate of 15.8%.
What does this mean in practice?
- Innovative new tools are being launched every month
- Traditional processes are being automated left, right and center
- Customer expectations are rising by the day
- Agencies that don’t embrace and adapt will fall by the wayside
Data-Driven Decision Making
Say goodbye to property investment based on hunches and instinct…
In the modern age we have entered data is now the basis of smarter real estate decisions.
Online platforms are analyzing:
- Market trends and future valuations
- Buyer behavior and preferences
- Neighborhood development indicators
- Investment return probabilities
The net result is that everyone can make better decisions. Buyers find the properties that match their needs, sellers price their properties more accurately and investors can identify opportunities with the best chance of success.
Mobile-First Everything
Here’s a trend you cannot afford to ignore…
Everything is mobile-first in the real estate industry. Property searches, virtual property tours, signing documents, customer communications – it all happens on smartphones these days.
Sites that aren’t optimized for mobile are losing massive amounts of potential business. Agencies that don’t have mobile friendly apps and services are destined to be left behind.
What All This Means for Your Business
The writing is on the wall…
The real estate industry is rapidly becoming far more tech-driven, efficient and customer-focused. Agencies that adapt to these changes will not just survive, they will thrive.
Agencies that hold onto the past will lose clients and struggle.
The winning formula will combine:
- AI-powered tools that provide better client-property matches
- Virtual reality for immersive, convenient property experiences
- Smart home expertise to service modern home buyers
- Mobile-first, apps and services
- Data-driven decision making
- Understanding and knowledge of sustainable and green tech
Looking Forward
Commercial real estate investment in the United States is expected to increase by 10% in 2024 to reach $437 billion. The residential sector is expected to trend in a similar manner.
But here’s the catch…
Success in the future will not come through the simple use of technology. It will come through the strategic use of it. In other words, the agencies that figure out how to use new tech to solve real problems and create better experiences are going to own the marketplace.
Time to Get Moving
The future of real estate is not coming…
It is already here and right now. Savvy and forward-looking agencies are pivoting and changing their business models while their competitors are still sitting around scratching their heads.
The longer you wait the more market share you are handing over to the professional of tomorrow.
Technology is making real estate faster, easier and more efficient for everyone. But only for those that are willing to embrace it.
The question is not if all these trends are going to completely reshape the real estate industry over the next few years.
The question is if you are going to be leading the change or scrambling to catch up.
