18 digital transformation trends in real estate to watch out for in 2022
The real estate industry is one of the most innovative industries in the world. It's constantly changing and innovating to keep up with an evolving market.
However, it can be difficult for companies to stay on top of all these changes while still maintaining their core business objectives. If you're looking for some insight into how digital transformation trends will affect your company over the next few years, then read on! Here are 18 trends that will impact the future of real estate. Pay close attention to ensure that your company stays at the cutting edge of technology in 2022.
1. Data analytics as a key tool in real estate deals and investments
Data analytics is already being used by real estate companies to source for data and property information, identify potential buyers/sellers, generate digital marketing campaigns and determine listing prices.
With the advent of Artificial Intelligence (AI), digital analytics will continue its upward trend in 2022 with a focus on predictive analysis that helps investors make decisions faster according to their preferences.
Artificial intelligence will help companies be better equipped with the information needed to serve their customers. For instance , machine learning algorithms can process huge data sets and provide insights into consumer behavior patterns that would then be used by realtors/companies for offering targeted solutions & services.
This digital trend is expected to bring about a positive disruption in every sector and real estate industry is not expected to be untouched by this digital shift.
2. Using anticipatory design to predict customer needs
Anticipatory design is digital tool that could become popular by 2022. It can be used to predict customer needs and hyper-personalize their experience with a business (e.g., recommending products or services they might like).
This digital trend has already been trending in other industries such as travel, automotive and entertainment. It will soon be the new normal in real estate by 2022. Applications are already in the works that use machine learning to predict what customers want out of their homes based on factors like age, career goals, family life and so on.
3. Omnichannel engagement is the new normal
Omnichannel engagement is quickly becoming the norm for many companies (and their customers) due to the rise of AI and automation. With omnichannel engagement , realtors/companies can interact with multiple people at once regardless of the channel they use.
This means that customers will engage with your company via many digital channels (e.g., websites, social media, mobile apps) and expect their prospective real estate properties to be available on each of these platforms as well.
With a single online search, they should be able to access all their desired information/properties via any device at their convenience.
4. Growing use of eSignatures
One digital trend you should keep an eye on is the use of eSignature. Since digital signatures are legally binding, it reduces the need for paper contracts and saves time by removing laborious paperwork processing steps to complete real estate deals. It also gives more control over document management to borrowers while making signing documents easier than ever.
Intelligent workflows around eSignatures, such as parallel and sequential signing of documents are going to become the norm going forward, streamlining signing process across the board.
5. Use of digital journeys in real estate
Digital journeys have started playing a key role in real estate strategies with features like online walkthroughs, 3D view from every angle and so on being used by developers to enhance the end-user experience.
Bureaucracy is something millennials are not used to and digital transformation can help businesses reduce clunky paperwork in real estate and replace it with interactive digital journeys.
It is estimated that on average, customers spend 6.5 hours filling in various forms during real estate transactions. Reducing that number will significantly improve customer experience and save time for real estate agents.
While some forms like property lease agreements might still be filled out by hand, the use of digital signatures will make it easier for real estate companies to manage documents such as deed transfers completely digitally.
Digital journeys can be used to improve multiple processes in real estate, such as:
- Data capture for contracting
- Scheduling and following up appointments
- Contracts and Signatures
- Document management
- Loan applications and processing
By 2022, digital journeys will go a long way in improving the entire user experience from start to finish for real estate companies. In fact, digital journeys are crucial components of digital experience that facilitate smooth business transactions and improve customer satisfaction.
6. Construction management using technology
Construction management can be a complicated and time-consuming process, especially when it comes to large projects such as shopping malls or other infrastructure development.
As raw materials become scarce and digital technology becomes more widespread, the construction industry will go through a major transformation in 2022.
This is where digital technologies such as AI (Artificial Intelligence) & IoT (Internet of Things) will play an important role . The integration of digital tools along with traditional ones like RFID tags could save construction managers both money and time by reducing the need for manual inspections while enabling them to track progress in real-time thus ensuring timely completion of projects on schedule!
7. Virtual Reality (VR) will be a key tool in real estate deals by 2025
With digital marketing becoming more and more competitive, realtors are looking for new digital platforms that can be used to market real estate projects/properties effectively .
According to experts , virtual reality (VR) & augmented reality (AR) tools such as VR tours and AR visuals could become popular among property sellers seeking an edge over their competitors by 2022 due to increased awareness about these technologies across different age groups.
Digitalization is a huge advantage in the property market especially when it comes to selling properties online. This digital trend is set to become mainstream in the next few years and will help realtors give potential buyers a digital tour of their property - without having to be physically present at the location.
According to statistics from Financial Times, approximately 20% of homes were sold this way between 2012-2015 with an expected surge to 30% by 2023. Luxury properties are usually digitalized first while the rest of the market follows suit in a linear fashion.
Virtual Reality In real estate will benefit buyers, sellers & realtors alike. In addition to giving potential buyers a "digital walkthrough" of properties they are interested in buying or renting, virtual reality has the potential to simplify real estate transactions by removing geographical boundaries.
8. Real-time tracking of all transactions in real estate
In spite of all the technological advancements made over the past few years, it has been difficult for realtors to keep track of every single transaction taking place across different cities or countries at any given time due to lack of technology integration between various departments such as finance & operations etc.
The good news is that by the end of 2022, realtors will be able to access real-time market trends, client data and sales leads across the world thanks to cloud-based applications gaining unprecedented popularity. This increased transparency in real estate transactions will also have a positive impact on customer experience & brand reputation because it provides them with accurate insights into the industry .
Powered by data, digital platforms would offer more than just matching sellers and buyers. For example , they can also help companies gain valuable insights into market conditions and buyer preferences so as to develop products/services fitting those needs with the aid of data analytics. This digital trend is expected to bring about a positive disruption in every sector and real estate industry is not expected to be untouched by this digital shift.
9. Crowdfunding as a new way to raise money for real estate projects
Crowdfunding is all set to gain massive popularity in the real estate industry with businesses exploring innovative ways of raising money. This digital trend will not only help them raise funds but also attract potential buyers with the promise of pre-booking their favorite properties.
10. Blockchain in real estate to secure transactions and enhance transparency
Blockchain technology has the potential to bring about a "paradigm shift" in how real estate transactions are carried out by significantly reducing chances of frauds and disputes, which can be one of the most daunting challenges for companies in this industry.
This digital trend has the potential of disrupting many aspects such as property registration, title deeds & home rentals because it can make transactions more transparent and secure while ensuring speedy clearance/approval processes for all involved parties.
As per research by Accenture, blockchain implementation could reduce costs of real estate transactions by more than 50% which will bring a huge wave of positive disruption within the sector.
11. Creating personalized customer experience through digital engagement strategies
By the end of 2022, digital marketers will be able to create personalized customer experiences through digital engagement strategies such as chatbots, which can answer questions about a product or service instantly.
This way they will also have access to private information like social media activity, browsing history etc., without giving out their digital identity, thus making the interaction more efficient for both parties.
12. Intelligent chatbots for more efficient communication in real estate
This digital trend enables businesses to automate their communication using intelligent chatbots which can assist customers with all aspects of real estate business such as finding the right property, making bookings, doing financial transactions etc.
In real estate, these chatbots can help with:
- Making more accurate price predictions and market trends based on the data available.
- Improving customer engagements by giving personalized responses to queries, etc.
- Carrying out financial transactions such as payments, deposits & rentals/sales securely through blockchain etc .
It is important to note that the above mentioned digital trends are just a few examples from a long list of possibilities that will become available to real estate companies in the near future.
13. Reimagining the role of brokers and agents In digital age with data crunching
Brokers and agents in real estate industry spend a lot of time sourcing for properties and help in securing deals which they pass on to their clients.This takes out a considerable amount of their time i.e., around 40-45% which can be significantly reduced by using data crunching tools to find properties/deals matching the customer's requirements.
14. Biometrics in real estate to streamline customer verification processes
Biometric technology provides quick and highly accurate solutions for customer's identification and verification to buy/sell property or secure rentals.
The most widespread applications of this technology include facial recognition , fingerprint scanning, iris scan etc., which can be used as a fast and efficient way of authenticating individuals and proving their identity.
However, the biometric industry is still in the initial stages , which means adoption among real estate companies may not be very widespread by 2023.
15. NFT applications in real estate
One of the major challenges faced by real estate companies is obtaining and managing title deeds. This information can be difficult to track and often times there may be multiple records for a single property which makes it even more complicated.
This situation is expected to change with Non-fungible tokens (NFT) applications in real estate as this would make it easier to track title deeds as each token is unique and can not be duplicated.
In addition, NFTs could also be used by companies to manage records as well as lease agreements for properties as this would effectively eliminate any chances of frauds or disputes.
NFT applications in real estate industry are likely to go mainstream within the next 3-5 years as the benefits for real estate companies are clear.
16. Digital tools to enhance customer experience in real estate industry
Real estate is all about customer experience , and digital tools have the ability to play a big role in enhancing this experience by providing customers with more transparency and personalized experiences.
Such digital tools include chat bots, virtual reality & augmented reality applications etc., which can offer users with better information regarding properties, walk them through the entire sales process , provide suggestions based on their preferences etc,.
Besides ensuring higher levels of customer satisfaction, these digital tools can also be used by real estate companies to gather valuable insights about the industry and improve their offerings accordingly.
17. Getting ready for the digital future in real estate with no-code
No-code tools are specifically designed for non-technical business users and can be used to build dynamic web applications quickly and efficiently.
By 2022, no-code technologies are expected to become popular among real estate companies as they would provide them with the power of creating smart dashboards which can be used to gain valuable insights into online leads, revenue etc,.
Companies may also use these tools to enhance their consumer experience by providing detailed information for properties, leasing or buying homes etc.,
Overall, no-code application development platforms are likely to become a key component of the real estate industry within the next 5 years as they can enable business users with a non-technical background to build customized applications from scratch.
Adapting to digital transformation trends in real estate
The role of digital technology is set to transform the real estate industry. This drive towards digitalization means that companies who adopt these technologies early on stand a better chance at carving out a name for themselves in the market. Make sure your company stays ahead of the curve by adopting new digital trends earlier rather than later.
As the real estate industry continues to adapt to the digital age, it is important for companies to keep up with these trends in order to stay relevant. Here are ten ways that digital transformation will impact the future of real estate.