What Technology is Used in Real Estate?
Real estate technology is a broad term for tools used in property research, buying, selling and managing. These tools include big data, artificial intelligence, machine learning and virtual reality.
Historically, transactions, underwriting and asset management are ripe for transformation by property development technologies that enable teams to make critical decisions quickly and accurately.
Artificial Intelligence (AI)
Real estate is an area where Artificial Intelligence (AI) plays a crucial role. It enables businesses to streamline processes and provide better customer experiences.
AI can be used to analyze transaction data and predict future market movements. It can also be applied to help real estate agents find the best properties for buyers and improve their marketing efforts.
In addition, it can be used to generate property documents and land records more quickly and accurately. It can also manage rental payments and resolve maintenance requests more efficiently.
AI is also used to improve commercial building security. It can alert building managers and property owners to potential threats to their properties and even track renter activity and rental arrears to prevent future problems.
Machine Learning (ML)
Machine learning is artificial intelligence that can automate tasks and make smart recommendations. Many businesses have embraced this technology, which can help them analyze data more efficiently and accurately.
ML can be used to find patterns in large amounts of data, identifying trends that humans might not be able to see. It is also used to predict future outcomes.
For example, Zillow uses ML to estimate the market value of a house. It takes into account a variety of factors, including square footage and upgrades.
DocuSign has also incorporated ML in its software to help companies create contracts more quickly and accurately. This allows salespeople to focus on more important tasks.
Virtual Reality (VR)
Virtual Reality (VR) technology uses computer modelling to create a simulated environment, which users can experience via VR headsets or goggles. This simulated world can be similar or completely different from the real world.
As a result, VR has been used for some purposes in a wide range of industries, including tourism, healthcare, automotive, and architecture. It has applications in education, as well.
In the real estate industry, VR can be used to provide 3D home tours to clients. This saves time and money for both parties by reducing the need to visit the property site for examination or demonstration physically.
Internet of Things (IoT)
The Internet of Things (IoT) is a chain of smart devices communicating in real-time. It can be used for various purposes, including improving the customer experience and reducing operational costs.
Property management companies can use IoT sensors to detect infrastructure deficiencies and other risks. This can help them reduce operating costs and increase their bottom line.
Moreover, IoT can improve building safety by monitoring security cameras and other systems. The data collected can be sent to emergency personnel and help them respond to an incident promptly.
Another important advantage of IoT is that it can save energy. Instead of turning on lights throughout the entire building or floor, smart lighting systems can be programmed to turn them on only when needed. This can significantly reduce energy costs.
Blockchain
Blockchain is a technology that records transactions in an immutable and secure way. It also facilitates the distribution of information and reduces the chances of fraud.
Real estate companies use blockchain to improve processes like marketing, searching for, buying, selling, and investing in properties. Some are even using it to tokenize property assets for greater liquidity.
Blockchain is a decentralized ledger system that records data in blocks of information, timestamped and chained together. It can be used to record all kinds of transactions and data in an immutable way, including the title, deed, land registry, co-ownership details, and more.