How AI is Disrupting the Real Estate Industry
Technology touches every aspect of our lives today, and the real estate industry is no exception. With 70% of buyers today searching for properties online and 85% of real estate brokers using advanced data tools to market and close deals, to say that technology changed the real estate industry would be an understatement.
The covid-19 pandemic enhanced this trend even more, as the need for digital transformation in the commercial real estate market became crucial for its survival. In an industry that is traditionally considered slow to advance technologically, the global pandemic has brought about a boom in PopTech and changed the game for brokers, landlords, and tenants.
From new tech-enabled platforms helping customers search for properties without leaving their homes to advanced AI technology for commercial property management and even architectural planning, PropTech is helping the real estate industry catch up on recent technological trends and advancements.
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Data is King
Every commercial real estate deal, from small office rentals to big developments, contains hundreds of data points. From price valuation and the surrounding neighborhood to the characteristics of the property itself, real estate agents and brokers need to take into account massive amounts of information to be able to market a commercial property.
Now, big data technology can help brokers, landlords, and even architects make faster and more informed decisions. Websites such as Zillow and Redfin have made it second nature for buyers, tenants, landlords, and real estate agents to search for their perfect property online, easily crossing different data points such as market trends, zip codes, square footage, and other factors.
With artificial intelligence, innovation is even greater. New technological developments unlock new abilities at lightning speed. qbiq’s AI-driven planning engines, for example, can generate Test Fits for any property in seconds, transforming how landlords and brokers market and close leasing deals.
CRM Becomes Basic
Although the commercial real estate industry is extremely client-facing, it is relatively behind when it comes to digitizing customer management. Customer Relationship Management (CRM) software such as Salesforce, Base, PipeDrive, and countless more, help real estate agents nurture their customer relationships by keeping track of emails, calls, and deal cycles.
With more and more commercial real estate software available for real estate agents, it is no longer a competitor who doesn’t digitize his operations in the coming years will have a hard time working alongside his competitors and keeping track of deals.
Showing (not) in Person
Everyone in the real estate industry knows – Sundays are for open houses. And yet, physical showings of properties, both in the residential and the commercial market, are becoming less and less important. Innovation is making remote walk-throughs more popular than ever, with everything from drone house showings to AR experiences.
The trend of viewing properties online is nothing new, but recent technological advancements are making it more immersive than ever. Realistic 3D virtual tours allow potential clients to view properties fully designed and staged without leaving their homes. With qbiq, you can generate unlimited 3D virtual tours for your commercial properties, displaying layout alternatives planned by AI-driven planning engines.
AR and VR technology takes this a step further, providing immersive experiences that allow potential tenants and buyers to experience properties – completely remote. With VR and AR for real estate, people can try before they buy – saving the time and cost of travel to scope out properties. Combining aerial drone footage and 3D technology, clients can even “step into” a space and even walk out to check out the neighborhood.
As Fintech develops at incredible speed, it affects a lot of other sectors along the way. One of them is the real estate market, in which deals can rise and fall on raising capital in time. From getting a mortgage to wiring money, the bureaucracy of fulfilling real estate deals has always been a long, complicated process that can sometimes risk entire deals.
With Fintech on the rise, it’s easier than ever for people to get approved for mortgages, transfer money from different bank accounts, and even use cryptocurrency to purchase real estate. Easier access to capital means more buyers and renters in the market, boosting it even in a post-pandemic era.
Moreover, Fintech isn’t just making it more accessible to get a mortgage, it is also digitizing real estate investments. Online real estate investments are becoming increasingly popular, expanding the market and streaming more capital into new developments.
What Does the Future Hold for Real Estate?
While some of the technological shifts in the real estate market were sparked by the Covid-19 pandemic, most of them are here to stay. Other than virtual showings, more reliance on SaaS platforms, and Fintech solutions, many technological trends are bound to enter the industry.
Looking to innovate your real estate business with the most cutting-edge technology out there? qbiq’s real estate planning engines offer a first-of-its-kind layout planning solution for brokers, landlords, and tenants. Combining artificial intelligence with optimization and generative design engines, qbiq can generate customized test fits and 3D virtual tours – in seconds.
Want to hear more about what qbiq can do for your business? Request a demo