Technology has a way of disrupting markets and changing industries. While we have seen all sorts of changes to a wide range of industries in recent years, the real estate market has been slow to adapt. For an industry with global assets in excess of $200 trillion, this failure to exploit the latest technological advances is significant.
With businesses in other industries leveraging technologies like artificial intelligence, cloud computing, and on-demand apps to improve efficiency, save money, and serve their customers better, companies that operate in the world of real estate should be looking to do the same. The following are a few technologies that are prime to have a significant impact on the real estate industry in the near future.
When most people think of virtual reality (VR), they think of games or the VR apps that can be downloaded to their phones. While entertainment is probably still the most popular use for VR, this technology is perfect for realtors.
With VR technologies, real estate businesses can move beyond just posting pictures of a listing to developing content that allows potential buyers to experience a property in a way that is much more immersive. Some real estate businesses are already using 360 video to create immersive previews for buyers that want to check out a home. Beyond that, you could create a digital representation that allows buyers to walk the floor plan of a property in a virtual tour.
There is definitely room for cryptocurrencies in the real estate market, but blockchain can do more than secure digital currency for real estate deals. What is blockchain? Essentially, it is a set of computers that each record an event or transaction and make it open to the public. The record is encrypted to prevent hacking or tampering. The value of blockchain technology lies in the fact that it facilitates transparent interactions in a secure manner without the need for a middleman.
What makes blockchain technology so attractive for real estate is the ways in which it could help to prevent fraud and improve security.
With a distributed ledger system like the ones used for cryptocurrencies, it is almost impossible for an outside actor to tamper with the information. Some businesses are even starting to use smart contracts that incorporate blockchain technology as a way to verify the transaction and relieve businesses and individuals from the need to hire professionals like lawyers and notaries.
Businesses in the real estate market might be slow to explore the potential of some of these technologies, but it is only a matter of time before they transform the industry. With an inevitable shift on the horizon, the early adopters will gain a significant edge from technologies like VR, cloud computing, blockchain, and more.