The COVID-19 pandemic has accelerated the race towards digital transformation within the real estate industry. Real estate businesses must keep up with the latest real estate technology trends if they want to remain relevant in the market. Having the right technologies will help you overcome the various hurdles that the future might bring. Otherwise, you might end up losing customers to your competitors.
One of the most crucial tools that you need is real estate software. This will provide you with features and functions to digitize your operations. This includes tasks such as property management, billings and payments, rent management and more. With the various innovations in technology, the future of real estate technology is full of possibilities and potential.
With that, here are some of the real estate software trends to keep an eye on.
1. Real estate software revenue to hit over $20 billion in 2026
A recent report predicts that revenues for real estate software will reach $21.12 billion by 2026. Meanwhile, for this year, it predicts that the market for real estate software will reach $11.72 billion. This is an increase from last year’s estimation which was said to be around $10.45 billion.
The COVID-19 pandemic played a key role in the increase in demand for real estate software. The various lockdown and quarantine restrictions forced many real estate businesses to resort to digital means to keep their operations going. Hence, real estate software became more than just a luxury but a necessity during this time. Through it, real estate businesses were able to communicate with potential buyers and tenants while ensuring everyone’s safety.
With the new normal in place, many predict that real estate software will continue to be vital for many real estate businesses.
2. Widespread use of digital twin technology
The past 50 years show a 19%-decline in the productivity of the real estate industry. As a result, many real estate businesses struggle to meet the demands of their customers. Hence, the World Economic Forum suggests that the solution for such a problem is the adoption of digital twin technology. According to its recent study, digital twin technology can help the industry save $100 billion annually and achieve cost savings of up to 20%.
Digital twin technology refers to the virtual representation of your business or service. It operates alongside your physical processes. Likewise, it receives and analyzes data in real-time to create simulations for your decision-making.
The advancements in real estate software solutions will allow you to leverage digital twin technology for your business. Its automation tools can make it possible to operate digitally in the future.
3. All eyes on artificial intelligence and machine learning
All eyes are on artificial intelligence as PwC estimates that it will contribute $15.7 trillion to the global economy by 2030. Businesses across industries are scrambling to leverage AI-technology and machine learning in their operations. The real estate industry is not too far behind.
Nowadays, real estate information technology incorporates AI and machine learning technology. This allows solutions to provide you with smarter automations and more in-depth data and analytics. This way, you can automate complex processes within your operations without the need for further human interference. This includes:
Maintaining buyers/tenants’ relationship
Ensuring tax and other compliances
Nurturing leads and prospective homebuyers
4. Rising demands for virtual transactions
Majority of people around the world are now connected to the internet. In fact, the internet has become so closely intertwined with the different aspects of people’s daily lives. They go online for work, studies, shopping, entertainment, and communication.
For real estate businesses, the internet paves the way for more opportunities and customers. According to the National Association of Realtors, 97% of home buyers found their homes via the internet. This goes to show how technology is changing the real estate industry.
The internet is the most convenient and accessible tool for homebuyers to find their dream houses. Hence, most real estate software allows you to directly connect your operations to the internet. This allows you to virtually interact with your buyers, tenants, and leads.
5. Critical role of big data in real estate
More businesses in real estate are taking a customer-centric approach with their strategies and planning. As a result, big data will play a critical role in the coming years. Through data and analytics, businesses owners can be more in tune with the latest demands and trends in the markets based on homebuyers and homeowners’ behaviors. It can also provide you with the disruptive trends in real estate to help you protect your business from such scenarios.
Currently, only 25% of real estate businesses’ investment goes to data strategy. But this figure will soon increase as more businesses take on a customer-centric approach with their services. Thanks to digital tools such as real estate solutions, gathering and analyzing big data can be done automatically and in real-time.
Choosing the right real estate software for you
Operating a real estate business in this digital age means you need the right software for you. It is important that you always keep an eye out on the latest trends in real estate technology.
Nonetheless, real estate software can only be as good as the person behind it. You must also hire the right people for the job. Consider working with people who hold some of the best online masters in real estate. After all, having an online masters is no different from other traditional means. Both still develop the same skills and knowledge geared towards real estate management.
So go ahead and explore what technology has to offer for your real estate business. Check out Lendlord to find out more.