By Grant McDonald
Disruptive innovation has proven to be the most effective method for companies in every sector to stay relevant in the market. For this purpose, smart real estate managers are embracing new technology. Real estate is aggressively trying to make up for being one of the last industries to adopt automation by embracing the most popular and trusted tech trends. If a company uses artificial intelligence (AI) and machine learning, it is more likely to get funding.
Thanks to real estate platforms, financial investments and new model features that keep popping up, this sector is now at its peak. The urban population will grow by 75% by 2050 to 9.3 billion people. As a result, real estate platforms will grow in popularity and development, so keep this in mind list from tech trends that real estate is shifting towards 2021:
1. Merchant Bridging Solutions
The development of vendor-friendly bridge solutions is a game-changer. For decades, buying your new home before selling your current one has been a major roadblock for potential sellers. Bridge providers operate in all 50 states; such new disruptors will have a greater effect. Bridge solutions can be used by agents while still being compensated.
2. Rental Management Software
Your rental administration should be done online as much as possible. Rental management software saves time by automating a variety of previously labor-intensive processes. Automation leads to cost savings and cost savings lead to profit.
3. Contactless experiences powered by technology
Consumer expectations have changed, with many people looking for short or medium term rental properties that minimize human contact. Keyless entry systems and other technology that enable contactless experiences will become more popular. This is especially true in aparthotels that do not have communal areas and offer facilities for longer stays, such as dishwashers and refrigerators.
4. Text-Based Interaction
In terms of volume and response, text-based interaction is unmatched. While in-person or telephone introductions are always more successful, the ability to respond quickly (within five minutes) to texts at scale is a competitive advantage.
5. Reducing the carbon footprint
Technologies that help commercial properties reduce their carbon footprint will continue to evolve as both the US and the whole world strive to fight climate change, especially in the wake of comprehensive policies implemented by the next administration. Real estate is a major contributor to climate change, and more incentives from the public and private sectors are needed to improve energy efficiency.
6. Intelligent access control
The most important investment property owners can make to make their buildings more efficient is smart access control. As a property manager, it opens up a plethora of savings opportunities, such as:
- Intercom calls with two-way audio and video
- Built-in access control
- Calls can be answered with your phone or your browser
- Using a smartphone app, you can unlock the door remotely
- Works for single-tenant office buildings, multi-tenant commercial spaces and residential structures
- Manage multiple doors and buildings from one location
- Sleek, well-designed hardware that enhances the look of any building
7. The Expansion of Blockchain
While blockchain is still in its infancy as an emerging trend, it has the power to substantially reshape the industry. The soul of the real estate industry is data. However, data is often inaccurate due to the high number of social ties involved and the often subjective assessment of evaluation. Some of this information can be captured in a single source using blockchain.
8. Fintech Companies Transforming the Real Estate Industry
Financial technology (fintech) tries to compete with conventional money lending techniques. It is a new industry that uses technology to help people better manage their money.
Fintech makes it easy for buyers to get in touch with the best lenders and get a real estate loan to finance their purchases. This software not only makes getting a home loan easier and faster, but it also makes paying off a home loan easier and more efficient. Fintech companies are changing the way financial financing is done in different ways, which is proving to be beneficial to the real estate industry.
9. Data Collection and AI-Driven Marketing
AI is the paradigm of real estate marketing and data collection. Excessive reliance on erroneous data, which can be thrown into the mix and distorted findings, would be a warning. While verification is always required, the reach and efficiency of the technology is astounding. Those not using AI will be left in the dust with buggy whips.
10. Machine learning gets more attention
Machine learning has always been the game changer. Collecting information manually and estimating spreadsheets used to take months to find the perfect location to invest in. This process now takes minutes thanks to technology that allows you to feed large amounts of data into machine learning algorithms to provide investors with highly accurate predictions.
12. Automated Valuation Models
Automated valuation models (AVMs) are rapidly becoming the accepted valuation standard. With this in mind, agents should adapt to using both conventional compositions and AVMs in their assessments for both offer and purchase pricing models. AI is here to stay.
Traditionally, the real estate market has been mainly organized, but new technological developments have transformed the sector, making it more accessible to individual investors, more efficient and more reliable for clients. These developments will help real estate thrive in this technologically advanced world and secure a comfortable position in the market.
The real estate industry needs a solution that can truly stand out from the crowd and compete in the global market to ensure a superior real estate solution. You also need to keep abreast of trends in real estate application development and predict the future of the industry.
Grant McDonald has more than three decades of experience in the real estate industry and more than a decade in real estate financing. He is currently VP of Corporate Development at 14th Street Capital, America’s premier lenders to real estate investors.