Top 3 Real Estate Technology Trends Post Covid-19
With the pandemic’s onset, changes have become uninvited guests in every sector, and the real estate industry is no exception.
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The physical checks and maintenance are no more part of the to-do list. But the transactions were still on, even when the markets were deadlocked due to the shutdown during the pandemic! All credits to digitization! It has transformed the way real estate activities are carried out. Tedious paper procedures are cut down, and reachability has spread its wings. It has sparked the industry to push forward some existing investment options like crowdfunding and certain technologies like Blockchain.
Technology and the changing ways of real estate investment
Technological development has impacted how real estate transactions are carried out. Technology has revolutionized the way buyers view and buy their property. Technological developments have also opened up room for several new methods of investing as well. Let us discuss some of how technology is changing how real estate investments are made.
The Internet has been instrumental in evolving the real estate sector as now, most of the properties are being listed online. By making an online listing, the sellers are now able to provide a proper description of the property along with pictures and videos. The buyers, apart from checking these details, can also check tax implications, neighborhood reviews, and the scale of infrastructure as well as commercial development of a particular locality.
3D Visual Tours
Technology has in itself evolved and developed. If earlier you could only view your property through photos and videos, now the technology enables investors to take a 3D tour of their property. As already stated, the development of virtual reality has also enabled investors to visit the property virtually and take a look around the property as if they were truly present in the property.
The evolution of blockchain technology has also transformed how the investment process is carried out. Back in the day, people worked hard to earn enough money to buy property. Some even took out large loans to finance their dream property. This is not the case now. Investors become more and more familiar with the concepts of crowdfunding and fractional ownership. By investing through these methods, you can invest with smaller capital in big-ticket projects. Investing through these options can also help you diversify your portfolio.
Let’s say, you are planning your investments in Bangalore with Rs. 60 Lakhs at hand. ABC Ltd. offers you a fractional investment option whereby you are required to fund just Rs. 5 Lakh for the ownership of a share in the property. Now you can invest in more than one share in the same property or diversify your investment portfolio by investing in different localities, sectors, or other investment options.
An appraisal is also another important aspect of real estate investments. An appraisal is a process of evaluating the merits and demerits of a property to determine the actual or potential value of the property. Traditionally, appraisals have been carried out by an appraiser who could be influenced by the clients to avoid economic retribution. However, technology has played a vital role in providing a more accurate appraisal of a property to the buyers, by utilizing machine learning and large data which has been collected and stored.
The technology has also been instrumental in developing platforms whereby parties can complete a transaction by staying very well organized and saving time. The technology now permits parties to carry out secure and legal e-signing processes along with facilities such as file sharing. The introduction of e-signing facilities has not only been instrumental in bringing efficiency to real estate transactions but also improved how buyers and sellers communicate.
Advantages of Digitization
Enhances Transparency and Reduces Transaction Time
The pandemic has confined people to their homes, impeding the physical checks on the property before purchasing. The developers have seen the opportunities amid the challenges. As a result, online platforms have gained traction. Though the vaccine drive is instilling the public’s confidence to get back on track, the emphasis on social distancing and hassle-free procedures is driving the markets towards digitization.
The properties are listed online, and digital platforms offer a virtual tour of the property during purchase or rent. This increases reliability and transparency.
With the rising need to maintain social distancing, there has been a shift to online property management platforms. Online platforms efface the tiresome paperwork like rental agreements and reduce the transaction time.
Remote Property Management
One of the most significant concerns is control over the rental properties from far-flung areas. Rental properties need attention as you need to collect the rent and may have unforeseen repairs to be looked into.
Digital platforms have come to the rescue of property owners. You can control your remote rental properties right from your home. All that you need is a digital platform that bridges you and the tenant. You can collect your rent on time, find an efficient tenant under vacancies by listing your properties online, and schedule your maintenance services if required.
Ensures High-Quality Deals to End-Users
Digital platforms have preset rules and regulations for verifying the properties and identity of the end-users. Only if your property satisfies all of them, does it gets listed. You can agree and enter into the purchase process after verifying your identity.
All the assets are curated and listed on the portals after they undergo thorough due diligence. It ensures the quality of deals for the end-users. Owing to the advantages and the situations, some digital trends have taken over the real estate industry. Let us look at some digital trends in the real estate sector.
Technology Trends in Real Estate Sector
●Virtual Reality Platforms
The digital transition of the industry has brought in innovative platforms that can boost the sector at large. Digital platforms have gained attention due to social distancing norms. You can rent or sell your property or buy a new one altogether.
Virtual Reality platforms gave new impetus to the asset industry. Buyers prefer visiting the property before finalizing the purchase. The pandemic brought such activities to a complete halt, for which virtual reality has taken over the industry.
With the emphasis on social distancing, the markets are believed to take a couple of years to get back to normal even after introducing the vaccine. Also, the investors prefer to have property checks according to their convenience right from their homes. On this note, it is an excellent opportunity for buyers to view the property through online platforms.
Virtual reality platforms hence have increased the reliability of the real estate sector with the high interaction levels. Buyers can have a comprehensive inspection from flooring to the ceiling, thereby increasing transparency in the deals. Virtual tours offer a 360° view to enrich the experience of the property view.
Crowdfunding is gaining traction with the digital transformation on its momentum. Today, most crowdfunding campaigns happen through online platforms.
Crowdfunding is a real estate investment strategy where people pool their small sums and invest in a property. It is for you if you are looking for investments with small ticket sizes. You can mitigate the risks as the potential losses are divided among the investors.
Due to the standstill that the pandemic has created, the need for funds for property construction rises. The semi-constructed properties need some capital to go off the ground and get back on track. This gap can be reduced by crowdfunding. As the pandemic in its aftermath has its effects pronounced on the markets, digital initiatives like crowdfunding have much to offer the end-users with smaller investments.
Numerous online platforms help you bag the property through crowdfunding. Assetmonk is an innovative online crowdfunding platform that fetches pennyworth properties. Assets at strategic locations from metropolitan cities across India are registered on the website.
Blockchain technology brought a revolution across the globe. No field is not going to see its disruption, sooner or later. Real estate has already started experiencing the impact of blockchain technology.
To define, Blockchain technology stores information related to a series of transactions in blocks, in all the computers called nodes. The information is shared with everyone on the chain.
Right from property registrations to making agreements, and peer-to-peer transactions, Blockchain technology is setting standards for security like never before. Blockchain information is complicated to hack as the information is shared across the chain. Your information remains safe even under malicious attacks as it would be stored across the chain. Blockchain technology can be implemented to digitize lands that reduce counterfeiting. Blockchain supports property purchases through smart contracts that let the users make a one-to-one deal. Intelligent identities can also be created, which can be stowed in a universal database that can be accessed to make safer transactions.
The sight of stalling projects has been common in the previous year, raising concerns about the credibility and completion of projects. This has also increased the demand for ready-to-move-in projects. If you are skeptical of the new projects and the builder’s credibility, then blockchain has the solution for you. You can check the track record of the builder before you proceed to purchase. It reduces the risk of defaulting, thereby ascending the authenticity in the real estate sector.
Every industry is transforming into digital where people prefer to get things done at their fingertips, and real estate is no exception. Digitization is transforming the industry to achieve higher scales with technologies like Blockchain.
While employing blockchain technology, real estate assets are split into tokens which are then stored on the blockchain. By tokenizing the real estate asset, landlords are now able to sell just a small portion of their property. Investors can also resell their shares in an open market through the secondary market. Another benefit of blockchain technology is that it opens up a route for investments from individuals that are from different income levels and locations.
The smart contract brings the buyer and the seller together as they need not go anywhere else to complete their registration process. The buyer just has to submit their information directly to the seller through an encrypted block. By using a smart contract, you can reduce the number of middlemen involved in a real estate transaction and can also speed up the process. The smart contract also helps in reducing fraudulent activities during property transactions.
Artificial intelligence is impacting the real estate industry mainly through the machine learning method of data analysis. With the help of ML, computers are now able to learn the data and not just carry out the programmed task. ML has helped in making real estate business decisions smarter through pattern recognition as it helps in determining information regarding the property such as the popularity of the locality and the reasons for the same.
The pandemic has catalyzed digitization, and the investors’ choice is propelling it further. Digitization lets the buyers make informed decisions as they have ample options to compare and choose from the platforms that would otherwise be not possible by conventional methods. The digital transition of the industry seems to be a feasible alternative for the end-users. You can make safe transactions right from your home and acquire profitable properties.
Assetmonk is an online platform, ever-ready to help you procure properties, one of a kind. Our managers are here to help you out with the procedures. High-yielding assets with an expected IRR of up to 21% and those that undergo due diligence make it to our list. Visit Assetmonk to know more!
Q1. What technology is used in real estate?
Some of the most commonly used technologies in the real estate sector include artificial intelligence, augmented reality, blockchain, drones, virtual reality, etc.
Q2. What are current emerging technology trends?
Blockchain, cloud computing, artificial intelligence, cyber-security, the internet of things (IoT), PWA (Progressive Web Application), mobile applications, etc. are some of the emerging technological trends in 2021.
Q3. How technology is disrupting the real estate industry?
Technology is changing the face of the real estate industry as it has changed how the properties are listed, views and purchased. By online listing, the owners are now able to provide all the necessary details along with photos, videos, and even a 3D view of the property through virtual reality. It has also made appraisal and valuation a more data and research-based function. E-signing has also increased efficiency and helped in saving time. The influence of technology is expected to increase in the future as well.
Q4. What is a PropTech company?
It is an emerging trend of real estate wherein the investing process of real estate assets is a combination of traditional and technological methods. In other words, companies that allow traditional real estate activities to be carried out through technology. Assetmonk is an example of a PropTech Company.
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