Digital Transformation in Real estate

Whether in how real estate agents work, properties' marketing, or buildings themselves, digital transformation has long since reached the real estate industry. Next to ESG, digitization is causing the most significant change in the real estate industry. A benchmarking study by PwC shows that virtual reality (VR), augmented reality (AR), the Internet of Things (IoT), the use of artificial intelligence (AI), drones, and robotics are the essential technologies for digital let transformation be identified. What can you expect today and in the future?

Digital transformation of the real estate industry at a glance

  • Digital transformation refers to the implementation of digital technologies and solutions.
  • In digitization, analog processes are converted into digital ones.
  • In the real estate industry, digital transformation and digitization affect customers, property management, and the properties themselves.

Digital transformation and digitization in the real estate industry bring challenges and offer great opportunities. And many real estate agents recognize the potential. According to another PwC study, many expect an improvement and optimization in data management, data quality, and simplification through automated processes. Customer management and marketing are also in focus.

The fields of action of the digital transformation include.

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Operational Optimization

  • Digitization of processes
  • The use of assistance systems that support work, such as apps and IT tools for mobile access to information, virtual reality (VR) and augmented reality (AR) as a new option for visual inspections, 3D printers, and 3D scanners
  • Networking

Customer approach

  • Digital communication on different channels, such as websites or social media
  • Digital Marketing
  • Comprehensive information
  • Personalized customer approach
  • Creation of customer experiences

Individual living

  • New working and living models
  • More flexible rental models
  • Self-service
  • Cooperation platforms

Smart buildings

  • Internet of Things (IoT) for collecting and evaluating data from networks of sensors, IT, and intelligent devices on energy consumption and energy efficiency
  • Smart home for intelligent control of building technology
  • Innovative metering systems for the intelligent management and optimization of energy, water, and electricity

BIM as the key to digitization

Building information modeling, called BIM for short, plays a central role in digitization. With BIM, real estate projects can be accompanied by a digital process over the entire life cycle. This starts with the first draft, continues with the construction, and ends with the optimization of the operation.

All actors involved in the project can work together intelligently using the cloud. With an extended BIM, tenant or consumption data are also part of the BIM, which different interest groups can use for intelligent property management.

What does digital transformation mean in the real estate sector?

The digital transformation in the real estate sector implies changes in different areas, from design and production to management and promotion.

For example, in the case of the design and construction of the house, these can benefit from systems such as BIM and blockchain. In addition, good work can increasingly include home automation and the Internet of Things.

On the other hand, when we talk about the management and promotion of real estate by real estate agencies or developers, this adaptation to technologies means more than robust Digital Marketing and the digitization of documents or operations. In reality, the digital transformation process entails an investment to improve processes, train people, and include technological tools in their operations. Some of them are.

CRM relationship and management systems to add different platforms with customer, property, and developer data.

  • The use of big data to have information about the properties for sale and their environment
  • The blockchain guarantees security and transparency in the documentation
  • 360º photography, augmented reality, and virtual reality are applied to enable remote and interactive visits to the properties.

Advantages of the digitization of the real estate market

Although the world is increasingly technological and the real estate sector, like everyone else, is experiencing a moment of transformation, this does not mean we should completely abandon traditional processes. Thus, technological advances help increase opportunities in the sector, from expanding the public to lowering costs and even discovering better working methods.

Benefits for companies

The main advantages for companies are.

  • Automate operations
  • Maximize the effectiveness of procedures
  • Increase productivity
  • Save time
  • Reduce costs
  • Capture qualified leads
  • Find new opportunities in the market
  • Anticipate needs and trends
  • Reduce the use of paper
  • Communicate with the client using different channels
  • Have updated data on properties and clients
  • Increase customer confidence

Benefits for customers

Likewise, digital transformation offers the following benefits for the client.

  • Virtually visit the properties
  • Communicate with the promoter through various channels
  • Get personalized advice
  • Have a better shopping experience
  • Be sure of transparency between all participants
  • Obtain information in real-time
  • Feel more confident in real estate services
  • Save time in many parts of the buying and selling process

Digitization is undeniably the present and the future in all sectors. In addition to being essential for companies to remain relevant, current, and competitive, they can ensure customer satisfaction and loyalty.

Technologies that the real estate industry is using for better digitization

Artificial intelligence and machine learning Artificial intelligence and machine learning have entirely transformed the real estate industry, from improving processes like finding relevant homes to adjusting transaction records.

Real estate companies can use artificial intelligence to recognize qualified leads from their website and mobile app development. The Ml model saves a lot of time by recognizing potential customers who are most likely to become legitimate buyers. AI can help real estate agents and brokers predict the final value of a property in a given market. In this way, AI can give you a competitive advantage in the digital real estate market without incurring additional costs on your company's infrastructure or assets.

  • Cloud Computing
    Cloud computing refers to computations performed in the cloud—SaaS software and services store and purchase information in the cloud, allowing for simple and fast connectivity.
    You'll improve customer relationships, provide faster responses to questions and demands, and reduce IT maintenance expenses for server hosting. Cloud services are used by 80 percent of the major real estate players for advertising, revenue, customer relationship management, future real estate management, co-collection, data collection, and other activities.
  • Blockchain
    Intelligent contracts represent one of the most helpful blockchain queries in the real estate market. This remedy can eliminate the time-consuming required documentation process.
    Blockchain allows transfers via smart contracts, removing the requirement for an intermediary to resolve disagreements and allowing transfers between indistinguishable parties. Blockchain can help real estate agents streamline transfers by eradicating intermediary and affiliate costs such as transaction, lender, settlement, and legal fees.
  • Big data
    Real estate is a sector that collects massive amounts of data about properties, owners, businesses, tenants, and agents. Data analytics resources can help real estate companies understand customer sections and forecast customer behavior.
    Real estate companies frequently use CRM tools to reach potential customers or gather customer information to forecast market trends, property purchases, investment insights, or pricing.
  • Building Information Modeling
    Historically, building information modeling (BIM) has resulted in significant cost savings for the construction industry. It is a procedure whereby the entire project team reveals all project information, such as 3D graphical objects and non-graphical information, which are then linked to create a 3D model using BIM.
    With a single mouse click, users can access data such as what fabric it is made of, who created it, how much it will cost, how long it will take to complete, and other advanced information. Real estate companies can provide detailed property analysis that has never been done before by merging BIM with augmented reality.
  • Internet of things (IoT)
    The Internet of Things is a method that uses the Internet to connect interconnected computing devices embedded in everyday objects.
    The Internet of Things will bring advantages to the real estate industry, such as preventive analysis, energy efficiency, and a more convenient lifestyle. Another IoT mobile app development that enhances property value is smart home devices with embedded sensors.

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Digitization only happens after some time. On the contrary, before making a business-hindering technology transformation, you first need to understand your audience, demand, and industry from the ground up.

As a sector that has only recently been introduced to the enormous potential of digital evolution, it is only a short period before the market completely reconfigures itself.

Let's drive digital adoption together

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