The world of real estate is one that is developing and evolving all the time, driven by advancements that are transforming how properties are bought, sold, and managed. With technology playing a major part in all of this, investors are increasingly looking to innovation to find ways of enhancing efficiency, boosting transparency, and unlocking new opportunities in what is one of the most lucrative markets in the world. From AI to the blockchain, let’s look at the trends reshaping the real estate landscape.
Technology: Uses in real estate construction
Tech has become an essential tool in overhauling the way properties are constructed. From the moment a building is conceived to the first time a key is turned in a door, cutting-edge innovation is boosting efficiency, accuracy, and sustainability. Building Information Modeling – known more succinctly as BIM – is a software that allows architects and engineers to work together, creating 3D models that can help pinpoint issues before the start of construction. This is a reliable way to cut down on errors, save costs, and shorten project timelines.
The recent developments in drone technology are another game-changer. Aerial surveys allow sites to be studied more completely and quickly than ever before and are able to identify hazards that more conventional surveys struggled to pick up. 3D printing, for its part, is showing its worth as a way to create building components that were previously hard to source, bringing further speed and efficiency to the process.
Robotics and automation are increasingly being put into use in construction, too. Autonomous machinery can handle some of the more repetitive tasks like bricklaying and pouring concrete, and AI systems are also being used to manage project workflows to ensure crews are used to their maximum efficiency.
AI in real estate
Artificial intelligence is likely to be remembered as the most impactful form of technology to affect the 2020s, and its use in the commercial world has certainly crossed over into real estate. Developers are using AI to analyze market trends, judge property values, and pinpoint investment opportunities. The ability of AI to near-instantly process huge volumes of data means that insights can be reached in moments where previously they may gave taken days. Evaluation of larger-scale developments, local economic details and climate trends can help make more informed decisions.
Aside from its analytical benefits, AI is also having a direct impact on the efficiency of property management. Smart building systems will use AI to control their energy consumption, reduce costs and improve tenant experiences. Such systems can be particularly beneficial in large commercial properties, where property owners often need eyes everywhere in order to manage resources.
VR and AR
Virtual reality is presenting opportunities to revolutionize the way properties are viewed. Prospective buyers or renters can take increasingly well-mapped virtual tours of properties without needing to visit the location or even be in the same country. AR, for its part, allows developers to mock up how a property will look inside and out when complete, allowing potential investors to see how an existing property would look with a new frontage, an extra level, or extensive interior remodeling. AR can also be used to create realistic models of properties that currently only exist in conceptual form.
These technologies are also increasingly being used during the construction phase, allowing architects and engineers to overlay plans on existing sites, see how far along the project is and potentially identify where a plan will not be able to be completed as planned. By identifying possible drawbacks before the building crew runs into them, AR can contribute to savings on the project and avoid situations where work must be stopped completely while new plans are drawn up.
The part blockchain technology can play
While developments in AI and VR are prominent in discussions about how real estate tech can affect building work, blockchain technology is offering new options for improved transparency and security in property transactions. Due to the decentralized nature of blockchain use, the risk of disputes over property contracts can be reduced, and the potential for fraud is also acutely minimized.
The need to exchange contracts and sign off on purchases – and indeed any documentation pertaining to property development – is also a boost for those looking to make real estate development easier and more transparent. It is possible to see at a glance the history of ownership, transactions, and changes across the life of a project. As adoption grows, the number of potential uses for blockchain technology using tools such as ETH Block Explorer will only grow, and the often complex nature of property investment will be simplified for many.
Data analytics and market insights
Perhaps the most absolute example of where technology is making a difference is on the data side of things. It’s not that long ago that insights into market trends, demographic shifts, and economic indicators were limited both in their accessibility and their relevance. Commissioning a report that could be crucial to the smooth transaction of property development was something of a coin toss; it reflected – in limited form – only the information that was available at the time the report was carried out. Now it can be updated in real-time, searchable via several categories, analyzed, and extrapolated with greater ease.
With machine learning, it is possible to feed this more complete volume of data into a program that can with greater accuracy predict market fluctuations and property values, giving everyone involved the chance to manage risks and maximize returns. In a market that is constantly evolving, this is an invaluable capability.
The intersection of technology and real estate has exponentially increased the possibilities for buyers, sellers, investors, developers, and everyone else involved with the market. And it is unlikely that this potential is slowing, let alone stopping. As innovations continue to arise, developments such as smart contracts and energy management systems can be seamlessly integrated into existing plans. By being ready to use the latest technology and strategize with greater amounts of data, investors can be even more confident of sustained success even in a landscape that changes as much as this one.
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