What Has Technology Done For Real Estate Evolution? 

11.04.21 06:02 PM Comment(s) By Assetsoft

What Has Technology Done For Real Estate Evolution?

For many, real estate doesn't make them think about technology. Most picture a real estate agent is giving tours or listings on dedicated sites. However, the industry has been one of the primary players in technology innovation. 

  

In recent years, real estate has been going through a major technological overhaul. It has benefited from solutions like CRM and ERP software. It has also seen property management software and other platforms specialized entirely on real estate operations. 

  

Before we begin, we must remind you how you can make the most out of technology implementation. We work with many major software providers to ensure you have premium access and support for the market's best platforms. 

 

How has it changed the landscape? 

Real estate has reaped substantial benefits from technology innovation. It has become fundamental for property managers to streamline financial processes, logistics, communication, and sales. 

 

2020 opened many companies' eyes as well. Social distancing and other measures demanded digital adoption if companies wished to curb the financial turmoil. The year became a catalyst for software implementation in most industries, and real estate wasn't the exception. 

Marketing

Digital listings are the earliest example of technology's changes in real estate. Today, we take for granted how we can find listings on any website. Additionally, social media has become a primary marketing channel for any property manager. 

Online companies

Today, and especially with remote work becoming more prominent, having a physical location isn’t necessary. Real estate managers can handle plenty of their operations on the internet, even showing properties via virtual tours. 

Virtual reality 

While we're on the topic, virtual reality has been more crucial than ever since last year. With social distancing measures, people have started to discover how convenient it is not to visit the property for a tour. 

Ecology

Solar panels, roof cooling, biodegradable building materials, and energy-efficient practices have also changed construction projects. As demand focuses more on eco-friendly spaces, upgrading properties becomes a necessity. 

Fintech

Finally, financial technology has driven much of the industry’s innovations. Companies can streamline payments and make tenants’ lives easier, creating a more attractive offer against their competition. 

 

The evolution of real estate technology

PropTech (or Property Tech) has been the most prominent driver behind real estate’s technological evolution. The concept aims to merge software and property management, and it’s among the best investments for any firm. 

 

The concept has brought vital innovations, such as online transactions, virtual property tours, extensive data management, and process automation. Many of these features have been standard in many sectors, but PropTech has tailored them for real estate. 

PropTech generations

Initially, PropTech focused on finding ownership options via market studies in real estate. The information was sold to stakeholders, and it wasn’t until “PropTech 2.0” that innovation became the attention center. 

 

This “second wave” introduced the IoT to real estate. It also encouraged growth for other developments, like smart construction and energy efficiency. 

New concepts arising 

PropTech has moved beyond those concepts as well. Today, energy efficiency and similar practices are typical for many. 

 

Now, the main focus for PropTech is to enable advanced solutions, like AI, automation, IoT, and more. 

How has real estate benefited from these innovations? 

PropTech has been vital for real estate’s growth. It has built many of today’s standards, and it continues to breed new practices. 

 

It’s enabled companies to automate operations and manage their properties and teams more effectively. That translates into more efficient services and saving costs. 

Real estate meeting this growth 

While technology’s evolution is crucial, we need to focus on how real estate has evolved alongside it. Technology has changed how people function and perform countless tasks, and real estate isn’t the exception. 

 

Real estate is a complex industry, which has made these developments almost a given for many companies. It's natural for property managers to look for appropriate software when tackling a problem. This approach has shaped real estate without many realizing it. 

Important turns 

Technology has become the center for countless companies for a reason. It has changed how people live and what they expect from their services. Becoming the first adopter for these solutions is a game-changer in most cases. 

Concept changes 

Office space, commercial real estate, and other sectors have been changing with technology. Property management has gone from micromanaging lease agreements and teams to centralizing all the information and communications in a single platform.

Technology reshaping real estate  

Real estate’s evolution goes beyond solving problems with the right software. Many industries have done the same, creating industry standards from technology. For real estate, technology innovation has created plenty of these standards. 

 

Unfortunately, many companies had failed to realize this fact, notably before COVID-19 changed the game. Even prominent names are still building their technology platforms and implementing new ones. 

The need to implement innovation 

Despite the industry's evolution, not all property managers have followed it. It's still mainly up to companies if they wish to implement real estate technology. That means that a significant portion of the market is still considerably outdated. 

 

The most significant technology trends coming this year have become somewhat bittersweet. They promise noticeable benefits for companies who implement them. Yet, companies who fail to do so will experience severe consequences as demand shifts toward modern firms. 

Most essential developments for real estate 

Real estate tech innovation goes beyond particular apps and software. When we talk about important developments, we mean the fundamental technologies that have allowed proptech and other concepts to grow. 

 

For real estate, the article mentioned three developments that we can consider as the foundation for most software innovation. Two of them have become commonplace on most platforms, but one could come as a surprise for many. 

VR 

Virtual tours have become the standard for countless companies and prospective tenants. It allows firms to stage and show properties effectively without breaking social distancing regulations. However, the primary consideration is its convenience. 

 

As the pandemic subsides, virtual and augmented reality will remain a favorite for building tours. Real estate will continue to benefit from future developments in this technology, and the same is true for companies who implement it effectively. 

The Cloud

However, cloud technology is the pillar behind most real estate software. This primary concept has enabled ERP, CRM, collaboration, and countless other software categories. Data management and streaming have become seamless thanks to the cloud. 

 

Today, most software used by real estate management firms relies on a cloud. That's what allows for instant updates, team collaboration, and practical support. Several devices can access the information and feature necessary without being in the office. 

Blockchain

The article mentions blockchain technology, but we need to clarify that this concept hasn't become fundamental in the real estate industry today. Nevertheless, it could provide incredible benefits for the sector and its software. 

 

Blockchain goes beyond Bitcoin and cryptocurrencies. It provides excellent security and transparency for virtually any type of transaction. Developers have experimented with blockchain on multiple processes, and it stands as one of the most promising developments for the future. 

What does this mean for property managers? 

Real estate keeps evolving thanks to software developers and tech research. However, it’s not an immediate advantage that any company can reap with minimal effort. We’ve seen companies fall behind the innovation trend, and that often results in revenue hits. 

 

In other words, real estate is going forward, but it's up to property managers to follow this growth. Digital adoption continuously becomes more critical. That's why we're keen to help you develop and execute an effective digital adoption strategy

Technology isn’t merely an advantage 

Years ago, digital implementation was a competitive edge that property management firms could implement if they wished. Doing so meant improving their services, but neglecting it didn’t mean financial turmoil. For many, it was better not to implement these apps. 

 

The pandemic, financial turmoil, and government healthcare measures have turned things around. Companies struggled to maintain operations during social distancing and lockdowns while managing revenue losses. 

 

Collaboration apps, management systems, and automation software proved invaluable for countless companies. Technology implementation ceased being optional and became an obligation for many. 

Clients will demand more 

The efficiency from automation and convenience of tenant portals and CRM software have built new industry standards. Clients and tenants won’t settle for less than today’s standard. That means companies failing to implement these technologies will be less attractive. 

 

Competitors who stay on top of innovation will benefit from this shift in demand. Companies that take longer to adopt digital solutions could hinder their profitability considerably. 

 

Implementing a voice integration system is a simple first step. It’s quick, affordable, and can make a noticeable difference. 

There will be less room for error 

These solutions translate into more effective operations—notably with automation and AI software. Many services become more efficient and less prone to human error. While that's good for the market, it'll create new and stricter expectations from consumers. 

 

Tenants won’t hesitate to avoid landlords who take “too long” to reply to their queries. The same holds for signing a lease agreement with someone who doesn’t streamline requests and payments via property management software. 

Assetsoft

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