11/05/2023
The pace of digital adaptation in real estate industry has been accelerating drastically in recent times. The COVID-19 pandemic was a major catalyst for this change alongside other factors. Digital transformation in real estate industry majorly refers to the use of technology to enhance customer experience, increase efficiency, and emergence of new business models. We explore here the key drivers behind this disruption and the emerging trends in the industry.
Forces Driving the Future of Real Estate
1. Customer expectations: Customer expectations are growing day by day and are looking for a seamless and personalized experience when buying or renting a property. Customers want to be able to view properties online, book viewings and make offers digitally, and receive personalized recommendations based on their preferences. Real estate companies that fail to meet these expectations are at risk of being left behind.
2. Disruptive business models: New business models are emerging that challenge traditional real estate business. Online property portals are providing a more streamlined and cost-effective way to buy, sell or rent property. In addition, platforms like Airbnb are challenging the traditional hotel industry by offering alternative accommodation options. Emergence of AI based property investment platforms have now started penetrating the real estate market.
3. Technology advancements: New technologies are being developed and maturing at an exponential pace, including artificial intelligence, machine learning, IoT, data analytics, digital twins and blockchain. These technologies are being used to create innovative new products and services in real estate.
4. Regulatory changes: Governments are implementing new regulations and policies to promote sustainability, better security, transparency, and fairness in the real estate transactions and industry.
5. Demographic shifts: As the population ages and becomes more diverse, real estate companies are being forced to adapt to new customer needs and preferences. Millennials and Gen Z are more likely to rent than buy, and they expect a high level of digital engagement from their landlords. Younger generations are more comfortable to buy, sell or rent online, without the need for a traditional agent.
6. Flexibility: With the rise of remote work and changes in lifestyle, there is an increasing demand for flexible spaces that can adapt to the changing needs of residents. This has led to the emergence of co-living spaces, co-working spaces, and mixed-use developments that offer a range of amenities and services.
7. Sustainability: Sustainability is becoming an important consideration in the real estate industry. Developers and investors are focusing on creating green buildings that are energy-efficient, environmentally friendly, and sustainable. Consumers are increasingly interested in Eco-friendly homes and communities.
