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In the wake of the COVID-19 pandemic, 2020 has proven to be a trying year for real estate professionals, and because of lockdowns and strict social distancing norms, many have turned towards PropTech to execute business transactions and strengthen processes.
Online property auctions also gained popularity among home sellers as well as buyers searching for safe and convenient means to sell and purchase a property during the lockdown.
As of August 2019, the market value for PropTech reached a whopping $1,015 billion, and in 2018, the PropTech received funding worth $1,385 billion. As per the data gathered by CREtech, the real estate sector gained a record-breaking $14 billion of investments in just the initial six months of 2019.
The adoption of IoT to tackle COVID by ensuring both the cleanliness and occupancy of office spaces significantly accelerated the adoption of PropTech in the commercial domain.
PropTech Trends in 2024
These are some PropTech trends that will gain momentum in 2024, considering that virtual tours and online interaction will remain the mode of conduction for real estate businesses due to the prevailing pandemic -
1. Real-time property data
In 2020, society became increasingly reliant on property data to gather trustworthy insights into the fluctuations of the real estate market due to the COVID-19 pandemic.
This real estate data turned out pivotal in influencing investment choices, rendering insight into aspects of the housing market that were struggling or going strong, and providing real estate agents with property as-well-as neighborhood data for home buyers and sellers.
This reliance on real-time property data will gain momentum in 2024 as it helps real estate agents stay informed about their understanding of the real estate market in 2024.
2. Virtual tours
Virtual tours have become an indispensable part of the PropTech and real estate business over the past year and will continue to shape the landscape as many estate agents have realized the ease and efficiency of a virtual tour.
While virtual tours can never replace a walk-in viewing, virtual solutions will continue to serve as a useful tool in the initial stages of the home selling process, as it will help draw in new leads and filter out uninterested clients beforehand, saving estate agents time and money.
3. Attracting gen-Z renters
In 2024, large numbers of Gen-Z renters will enter the property market as they join the workforce. As the most tech-oriented generation yet, Gen Z renters will seek homes that come equipped with state-of-the-art tech offerings.
Smart features at home will help attract Gen Z in 2024. The tech-savvy Gen-Z will get impressed by smart thermostats that regulate and optimize energy usage at home.
Other features such as smart lights and appliances that can get controlled via a smartphone will attract Gen-Zers as it adds to the convenience and can also save electricity by keeping unnecessary usage in check.
4. Automated data extraction
Estimating the worth of a property is paramount when you are trying to list it online for an accurate price, getting financing, or analyzing a property before purchasing.
Automated data extraction can obtain structured real estate data from any publicly accessible listing website. With this data, you can justify your price or put forth your offer more accurately.
The process of automation in data extraction also significantly impacts the vacancy rate, which is inversely proportional to the rent of the property.
Many agents use static vacancy rates when evaluating a property and neglect the relevant data to avoid time consumption when researching data.
With automation, you can gather high-dimensional data about the real estate market conveniently and estimate the predicted vacancy rate with greater accuracy.
If you seek a decent online platform for efficient automated data extraction as-well-as automated invoice processing, visit Docsumo online as it delivers reliable error-free results and acts as a user-friendly tool for any firm.
5. Augmented reality and Virtual reality
Augmented reality & virtual reality have significantly revolutionized the real estate industry because of their competency to reduce the time, efforts, expenditure & energy required in physically travelling to the property.
A potential buyer or owner can visually inspect what the property will look like in an immersive experience rendered by this technology even thousands of miles away.
These technologies offer property viewing, augmented hoardings, brochures, walkthroughs, a 360-degree view, which increases the aesthetic appeal as well as transparency in marketing & selling.
6. Big data
Real estate will harness the potential of extensive data of differing technical & statistical complexity to execute better & refined decisions in 2024.
With big data, you can know about the history of the location of the property and the property itself, mortgage estimates, present value, ownership costs, future worth forecasts, and many more.
With the advancement of machine learning, several companies now offer substantial support in determining the right decisions in every situation.
The launch of 5G technology has brought new hopes of dynamic transformations, especially in the realm of PropTech. Considering that 5G will offer greater bandwidth, more smart devices and sensors will now get linked with the internet.
This internet accessibility will serve as a significant advantage to IoT in home automation, IoT solutions, and many other domains because higher bandwidth will facilitate the creation of wireless workplaces, seamless accessibility of IoT structures in smart homes, and enable more individuals to telecommute simultaneously.
Crowdfunding is the means of obtaining funds for a project/venture by gathering it in small amounts from a substantial number of individuals.
This approach is a safer game for the investors, and the project developers, as they benefit equitably, can handle the initial pressure of investing & enjoy more benefits since it flourishes on joining forces.
Crowdfunding is a new emerging yet renowned PropTech as individuals are authorized to transform into investors through online platforms & to invest a small volume does not cost anyone much.
Blockchain is a fusion of currencies & technology and is a revolutionary concept for the real estate sector because middlemen and transaction cost gets nullified. Cost-effectiveness and learned decision-making process act as the two primary benefits of using Blockchain.
Any decision that revolves around leasing can get executed after analyzing & considering the shared database where all the parties involved, ranging from stakeholders to tenants, can interact. Blockchain also facilitates transaction history on transparent and streamlined grounds.
PropTech has witnessed an exponential growth throughout 2024, with technology replacing many manual processes for professionals across the sector after its increasing popularity since 2020.
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