Table of contents
Digitalization is a trend of effective global development. It takes place against the backdrop of the introduction of technology into everyday life and the formation of a new economic reality in which past profitability indicators become a historical fact.
Digital technologies are becoming the new reality of the real estate industry, and its future depends on how quickly the industry and its participants adapt to the new reality. This approach implies not only the installation of modern equipment or software but also fundamental changes in management approaches, corporate culture, and external communications.
As a result, each employee’s productivity and customer satisfaction increase, and the company acquires a reputation as a progressive and modern organization. Our new article is about real estate technology trends in 2022-2025.
Real Estate Technology Trends in 2023-25: General overview
Our team consistently implements new real estate industry trends and uses best practices to create modern products while working on real estate projects. Today we will tell you about the hot real estate technology trends in 2022-2025 and how to win in the technology sprint. We will consider the following questions:
- Expert opinions on changes in the real estate industry
- Key real estate technology trends in 2022-2025 and their business benefits
- What real estate software development trends are gaining momentum?
- Why is it essential for your company to follow real estate technology trends?
- How can Northell help you in this challenging era of technology?
What are the main predictions for the real estate technology trends from leading experts?
The whole world is developing at the speed of light, and it is essential for such areas as real estate to keep up with these developments and not miss the opportunity to implement the latest technologies in business.
Bill Menish, Premier CRE & Auctions in Louisville, predicts the following technologies will be in-demand in the near future:
- Smart technologies that contribute to space optimization maximizing space use and lowering expenses.
- Technologies for creating a user-connected environment, such as online interaction between homeowners and tenants (cleaning, repair, construction, maintenance).
Andy Bodrog, Director of Property Partnerships in Cover Genius, believes that the following technologies will be popular in the real estate industry in 2022-2025:
- Blockchain and Internet of Things
- Big Data
- Machine Learning
Bernie Devine, Regional director at Yardi Systems, says, “People are fascinated by shiny new technology, and everyone is talking about artificial intelligence and big data, but they still aren’t automating their processes.” Therefore, we decided to write this article so that as many real estate business owners as possible learn about the opportunities and benefits of real estate tech trends and think about their implementation.
Let’s first look in detail at the main predictions for the real estate industry:
Big focus on ESG
ESD stands for Environmental, Social, and Corporate Governance. ESG concerns have emerged as a major priority, and businesses should adapt in order to fulfill expanding investor, tenant, and employee expectations.
According to 60% of Real Estate respondents in the 2022 Deloitte Center for Financial Services Outlook Survey, ESG activities are producing new business prospects for their company, and half believe these initiatives are offering them a competitive advantage. Here are 5 main action steps for companies that want to enhance ESG governance and impact:
- Create and execute mechanisms to track progress and hold leaders responsible for meeting goals.
- Create a plan for establishing and documenting ESG strategy as part of the overall company strategy.
- Incorporate ESG into the company from the beginning of a project through how it is handled on a daily basis after completion.
- Communicate the company’s ESG strategy and strategies to both investors and staff.
- Conduct a thorough climate risk assessment in order to reduce total risk and influence actions.
Customized AI tools
Customized AI solutions may help with the evaluation of big files for Real Estate research, data quality checking, and offering insights into the underlying causes of trends. Scenario simulation and effect analysis may be used to improve crucial investment, budgeting, and planning choices.
The generative design provides a virtual environment to evaluate several variations of a design solution.
Various data, such as building use, building height, construction area, loss rate, construction cost, GHG emissions objectives, number of inhabitants, availability of green space, access to natural light, connectivity, and proximity to transportation, are input.
As the model achieves acceptable operational performance based on project success criteria, it becomes stronger and stronger.
Autonomous Vehicles & ridesharing technology
The emergence of autonomous vehicles (AVs) and ridesharing technologies is set to transform urban transportation. Furthermore, the influence on real estate is expected to be substantial and far-reaching.
The adoption of AV will have an influence on the value of real estate and the significance of where people choose to reside. As the travel time to vital services and the job decreases, proximity to core sites becomes less important. Properties near public transportation will ultimately lose their competitive edge and market value.
The Real Estate sector has been influenced and is now being disrupted by an increased emphasis on sustainability. The regulatory framework is always changing, and the industry has moved toward sustainable solutions, on the one hand via collaborative efforts through proptech communities and on the other hand through in-house innovation initiatives.
Mobility-as-a-Service (MaaS) enables individuals to plan trips, including different forms of transportation, using a single application and payment method. The many services provided by the mobility hub may be combined into a single digital mobility app that enables individuals to plan and pay for their journeys.
Impact of CSRD
CSRD stands for the Corporate Sustainability Reporting Directive. It would significantly expand the scope and reporting obligations of the EU’s Non-Financial Reporting Directive (NFRD). This ambitious package will require numerous Real Estate businesses to report on all relevant interior and exterior Environmental, Social, and Governance (ESG) concerns, having a considerable effect in the near term. The proposed rules will go into force in 2023. Therefore it is critical to be prepared.
A smart building is a centralized, automated control and management system for heating, ventilation, air conditioning, lighting and other building services.
The real “smartness” of a building is determined not only by the smart building technologies that have been deployed but also by the engagement of each key stakeholder group throughout design, implementation, and operation. This is required to decrease implementation complexity and technology adoption while in operation.
Property management digitalization
Property management organizations may profit from digital transformation by addressing concerns about poor management and capitalizing on possibilities created by rising demand. This requires four steps:
- property management digitization
- property management requirements are divided into standard and optional
- support for self-administration of multi-dwelling units
- industry cooperation
“Green construction,” or the need for buildings and construction processes to be more environmentally friendly and “green,” can be viewed as a cross-industry challenge affecting all stakeholders in the Construction and Real Estate sectors, with a solid link to the overall green sustainability trend affecting various sectors of the economy (e.g., manufacturing, energy, consumer goods and more).
Its major purpose is to decrease the environmental effect of the building industry via the use of renewable and recyclable materials, as well as to restrict energy consumption and waste reduction throughout the construction process.
Real estate technology trends 2023/2025 and their benefits
Now let’s look at the leading real estate technology trends in 2022-2025 and their impact on business:
Artificial intelligence (AI)
AI-based solutions are one of the most significant trends in real estate. AI improves various aspects of building management services, including market forecasts and security measures.
AI-powered services, such as optical character recognition, may help enhance transactions. Before a transaction, AI may scan papers and do financial audits.
Enhanced customer services
AI can enhance customer service by providing timely, individualized replies around the clock. Beyond chatbots, AI may be designed to solve particular issues and incorporated into management systems.
Smart market forecasts
Predicting market trends and offering projections on where a firm should concentrate is a helpful advantage. AI, for example, may study data that exposes patterns in rental growth rates and which renters are more likely to renew leases.
Big Data is the storage, processing, and transfer of massive amounts of data. Industrial real estate firms may use data pools to make better choices and enhance operations. It is anticipated that by 2025, 463 exabytes, or about 212,765,957 DVDs, would be manufactured per day.
Customer behavior predictions
Real estate firms can analyze massive amounts of data to forecast human behavior, allowing them to adapt property searches to meet the demands of their customers. Data mining is a procedure that breaks down vast amounts of data to find patterns and trends.
CAFM (Computer Aided Facilities Management) software may collect and process many types of data points from various processes. This includes air conditioning systems, power use, water management, etc. This functionality allows you to make faster decisions, boost tenant satisfaction, and fix issues before they develop.
PropTech plays a significant part in ESG, and people are beginning to see this. ESG stands for environmental, social, and governance, as previously stated. These measurements are critical to the way firms function today. Innovative technologies have the potential to enhance not just ESG data gathering and reporting but also ESG performance in general.
Internet of things (IoT)
The Internet of Things (IoT) is a network of continually linked “smart” devices and applications to cloud-based software. The number of linked devices globally is expected to reach 25.4 billion by 2030. Automation may help to simplify operations without requiring constant human attention.
Automated data collecting and monitoring
IoT can give up-to-date maintenance records and property history via continuous data capture. Sensors installed in the facility may capture a wide variety of data on the building’s parameters, such as temperature, humidity, air quality, and the presence of people, among other things. Automated data monitoring ensures entire system viability and access while reporting issues rapidly.
Smart notifications and alerts
Building managers and personnel may get alerts on any issue areas and execute repairs more quickly and cheaply with smart devices providing information. When you integrate the Internet of Things with CAFM and CMMS systems, you may define alert thresholds for sensor readings and get notifications when they are exceeded.
VR & AR
Before doing a physical inspection, according to the statistics, 97 % of purchasers conduct an online search. The introduction of virtual and augmented reality technologies will alter not just the buying experience but also computer-assisted facility management systems.
Real estate virtual tours
To enhance the buying experience, commercial real estate agencies might develop virtual tours of their properties. Buyers who are unable to personally view the property, such as owing to COVID-19 limitations, may have complete access and observe everything as if they were there. According to a recent poll, 72% of agents will continue to use virtual tours after the outbreak.
3d property modeling
Creating new property might be difficult. 3D modeling may provide realistic architectural representations that can be used to aid decision-making and offer perspective on building modifications.
Real estate software development trends 2023/2025
Now let’s look at real estate software development trends:
Next-generation mobile applications
The typical smartphone user installs 9 applications per day and 30 apps per month. As smartphones get more sophisticated and functional, mobile applications are the way to go. Instead of carrying or using a computer, everything may be done from a phone, whether you’re shopping for a property or selling one.
It also saves time since consumers can look at the property from their phones and go see it when they are interested. Customers and businesses can improve their experiences or services by using a variety of mobile applications.
Companies, for example, can use a service that they do not have time to provide. This might set them apart from the competition!
Blockchain technology may be used to store data and to serve as a digital register for transactions and contracts. It has the ability to automate, speed, open, and track transactions. Furthermore, the records of all confirmed transactions remain untouched, and you can be guaranteed that your sensitive blockchain records are only accessible to the network members you choose.
Customer relationship management software
CRM software may monitor leads, manage contacts, store data, and keep track of prospective prospects’ development. Real estate agents might have online accounts where they can see all of their interactions with prospective and existing customers. They may choose to send messages to various categories of persons who can deal with them.
If you want to learn more about building a CRM for real estate, check out our article Practical Guide on Real Estate CRM Software Development.
Full automation of routine tasks
Customers will be able to automate normal client services, communication, leasing, maintenance requests, and viewing schedules using smart solutions.
Smart geolocation tools
To assess land value, geolocation technology can view county maps, flood zone maps, property data, and terrain. You may also make an app that includes filters for noise, air pollution, parks, rivers/seas, and industrial locations.
High data security tools
New applications are created daily, expanding property purchasers’ options. However, this does not imply that they are all trustworthy. Users are concerned about their data being stolen while selecting an application. As a result, we also propose that you focus on assuring the security of your solution. You can make this a noteworthy advantage.
When Facebook launched its metaverse last year, it rapidly became evident what it might achieve for the global economy by reinventing how virtual property owners strategically advertise.
Commercial buildings/stores/showrooms, for example, might be included on Metaverse real estate platforms, with technology like blockchain, bitcoin, and NFTs enabling business interactions. Investors are also taking notice of metaverse real estate agents as possible significant participants in the virtual property management market.
Crowdfunding platforms raise funds via individual contributions in order to support new companies or initiatives. It enables individuals to invest in causes in which they sincerely believe. They also only donate the amount of money they want, resulting in more diversity of their assets. It opens up the option of expanding the pool of possible investors for real estate.
It may also enable businesses to develop initiatives for which regular financing is difficult to come. As more crowdfunding sites appear on the internet, this technology is increasing in popularity. When it comes to financing new ventures, it may be a smart idea to explore crowdfunding.
Why is it so important to follow technology trends in real estate now?
We have covered all major commercial real estate technology trends. Now let’s look at the main reasons why your business should definitely follow commercial real estate technology trends:
Improved seller-buyer communication
Thanks to real estate tech trends, your company can improve seller-buyer communication.
Using modern tools for communication, management, and work with clients, you can significantly increase not only conversions but also the quality of interaction with your existing customers. Communication between the buyer and the seller will become faster, better and more efficient.
Deep process optimization within the company
Following current trends in real estate directly affects the internal processes in the company. By following current real estate trends, you can optimize the company’s internal processes and make them more efficient and effective. For example, the use of tools such as ERP or CRM systems will help you with this.
More customers attraction
Modern real estate clients, namely young people, love everything new and contemporary. Following the latest real estate technology trends will help you attract more customers and therefore open more doors for your company in the market. Commercial real estate technology trends allow you to open up more opportunities for your customers.
Business loyalty increase
People trust companies that use advanced technologies and best practices to ensure that customers remain as satisfied as possible with the services provided. Therefore, following commercial real estate technology trends can help your company increase its level of loyalty.
Business performance improvement
Following commercial real estate technology trends will increase your company’s performance.
Firstly, by introducing new technologies into the company’s work processes, you thereby improve its efficiency. Secondly, new tools will help you improve the smooth operation of all departments and thereby improve the performance of your business many times over.
How can Northell help your company in this challenging era of real estate technology?
Northell is a team of talented and skilled product designers and developers. We are a modern company, so we try to implement new technologies and use best practices in every project we work on.
Our team has a wealth of experience creating various products and solutions for real estate businesses. In addition, our designers and developers monthly attend seminars and training on technology trends, best practices, and innovations in various industries, including real estate.
How can we help you?
- Conduct an initial consultation on your project
- Recommend which technologies should be implemented specifically for your business
- Build a digitalization plan for your real estate business
- Find the right tool to improve your real estate business
- Develop a product, solution, or software according to your requirements and needs
If you need help with any of the points listed above, don’t hesitate to contact us! Our team will be happy to discuss with you all the details of your project and offer the best solution.
We also recommend that you read materials on the real estate sector prepared by our team:
- Real Estate Management Software Development: Process, Best Practises, Pitfalls
- How to Develop a Custom Inventory Management System in Real Estate? [Problems, Process, Best Practices]
- How to Develop Property Management Software For Real Estate?
- How to Build a Real Estate Website: Features, Cost, Development, Example
Real Estate Technology Trends: Summing up
Commercial real estate technology trends are shaping the commercial real estate business. The traditionally conservative industry is increasingly using cutting-edge technology to enhance facilities management systems, maintenance, and data processing.
The world does not stand still, and your business should start developing with it. We recommend that you do not delay the digitalization of your business and the introduction of new real estate technology into your business. If you need help or still have any questions on this topic, contact us. Northell is always open for dialogue.