Month: October 2022

Real estate businesses have been impacted drastically as COVID-19’s consequences are felt globally. Real estate executives are worried about maintaining value and liquidity in the near future, keeping visitors and residents safe, including additional cleaning procedures, and adhering to federal agency standards. However, the real estate market will change as new trends take hold in the post-covid era. In this blog, let’s talk about how the real estate industry has adapted to the new norms post-covid.

Impact of Covid-19 on Real Estate Market

It is very obvious that the COVID-19 crisis heavily impacted the real estate market. Due to the pandemic, many households are reevaluating their housing requirements because their homes have replaced offices, schools, and restaurants. Before the year 2020, commercial real estate was thought to be a late adoption of new technologies.

Despite IoT adoption taking place in the creation of smart cities and smart building technologies making gradual but steady inroads in the sector, this was the case. The pandemic forced severe commercial disruption throughout the world, and it also forced the real estate sector to take action to investigate technology-based solutions like never before and remain relevant in the new normal. More emphasis on providing touchless service across all customer touchpoints, creating spaces for maintaining social distance from a safety perspective, and other factors led to the introduction of new solutions in commercial buildings and retail.

Role of technology in the Real Estate Industry

Every part of the organization, from sales and marketing to leasing and data administration, is quickly adopting new technologies and creative solutions. All brands have started to make this move, and the real estate industry is no exception. Real estate transactions have begun to be completed online as the majority of clients are enquiring and interacting online. Going digital improves customer targeting and makes it easy to engage with potential customers, which can speed up the closing of sales. Other digital advances include chatbots with AI integration and video walkthroughs, which streamline and seamlessly integrate the already complicated and time-consuming process of the complete purchasing and selling cycle.

Modern real estate developers must adopt cutting-edge technology-driven infrastructure and be future-ready if they want their projects to be quickly shortlisted and draw in both individual and institutional investors. The forward-thinking real estate firms are quickly emerging as torchbearers in recognizing the current upheaval and altering the real estate industry’s current rules.

Current status of the real estate market

• The majority of building owners and developers now have significant investment plans to make sure their constructions have various touchless technology features. Some of them are touchless elevator access, face detection and recognition systems to enter and leave commercial office buildings, touchless intelligent parking management systems, no-contact valet solutions, etc.
• Additionally, there has been a significant advancement in the F&B sector in the area of contactless eating and delivery.
• All consumer needs and desires are now addressed, albeit in novel ways, due to contactless service delivered through online platforms and every other customer touchpoint.
• In addition to increasing process efficiency and accelerating reach to the target audience, these technology-based solutions and automation have also improved the general customer experience.

Recent New Normal Trends in the Real Estate Industry

Contact-less spaces

Businesses are highly anticipated to implement contactless solutions in the real estate sector since the term has already gained popularity during the covid pandemic. As a result, there may be an increase in demand for contactless door entry solutions in the future. In order to reduce human contact, contactless elevator control technology will also be in demand in the future. People would feel more secure and confident if contactless technology were implemented in elevators and commercial settings, such as when entering and leaving the office. Additionally, employees that are in better health have lower absenteeism rates and higher output rates.

Incorporating IoT technologies

To describe it simply, the Internet of Things (IoT) is a technology that enables items to connect through the internet and exchange data with one another. IoT is unquestionably changing the real estate sector post covid with the development of the idea of smart cities. Smart buildings are evolving into the new norm for industrial participants as IoT technology proliferates. This would enable the automation of many building functions, including ventilation, security, and lighting, and the adoption of a sustainable lifestyle. Numerous modern start-ups are developing creative, cost-effective solutions that can be incorporated into the neighborhood’s existing structures.

Usage of AI and ML Techniques

The IoT in buildings makes it simple to handle a variety of building-related data, including electricity consumption, occupancy data, and temperature data. In fact, Artificial Intelligence (AI) and Machine Learning (ML) algorithms can identify cost-saving opportunities or detect patterns of failure. The manner buyers, sellers, brokers, and other real estate stakeholders conduct their business is being completely altered by AI and ML technology.

Virtual Home Tours

According to a statement made by Matterport long back, “78% of home buyers admit that they are choosing to visit more properties digitally via 3D tours due to safety concerns.” In addition, “69% of house sellers now feel that 3D tours are essential,” despite not previously believing them to be so. However, in contrast to prior years, iGUIDE has noticed a 400% growth in real estate virtual tours. Virtual tours will continue to exist even after the pandemic because they have made home browsing much simpler and saved the actual visit for buyers’ shortlists.

Virtual Home Staging

Brokers and real estate agents spend a lot of time and money staging properties since an empty house doesn’t show off a home’s actual potential. A National Association of Realtors Research Group found that 47% of buyers mentioned that house staging affected how most purchasers saw the property. Virtual staging is much faster, allows for any environment, and eliminates the need for props. Properties that have been virtually staged have been shown to sell 73% quicker than unstaged ones.

Process Automation

It refers to the use of software or automation tools to automate routine office operations that don’t call for significant decision-making. Data collection about purchasers and sellers, data maintenance, and data monitoring procedures are additional typical clerical duties that can be automated through the use of automation tools. Real estate will be able to survive in this technologically advanced world and establish a comfortable position for itself among the competition due to these advancements and innovations.

Conclusion

In the contemporary business world, investor interest is increasing in the technology employed in building interactions and real estate developments. The aforementioned trends are just a few instances of how new technology is permeating the real estate sector post covid. Investors will need to keep track of the new opportunities brought about by technology and the businesses that are best utilizing them as they decide what investment objectives to pursue.

Technology has evolved into a crucial requirement for companies looking to expand rapidly. The real estate industry is not an exception. Adopting modern technologies may do wonders for real estate industries, whether they are developers or brokers. Also, it is predicted that, by 2030, the real estate industry will be worth $1 trillion. In this blog, we will have a detailed discussion about real estate technology, its benefits, and certain myths associated with it.

Real Estate Technology – Explained!

Real estate technology, often known as prop-tech or property technology, is the application of financial principles to housing markets and data innovation. Real estate technology innovation goals include reducing administrative work or facilitating faster and more effective trades. In other words, real estate technology is an emerging area of information technology and software developed specifically to meet the demands of property owners, managers, operators, brokers, investors, tenants, and builders.

Some objectives of real estate technology include minimizing paperwork or making transactions speedier and more efficient. Some examples of contemporary real estate technologies include,

• Use of digital dashboards for property management
• Smart home technology
• Research and analytics
• listing services and tech-enabled brokerage firms
• Smartphone applications
• Commercial and residential lending
• 3D modeling for online portals
• Automation of crowdfunding real estate projects
• Shared space management
• Organization, analysis, and extraction of crucial information from lengthy rental documents

Key Real Estate Technology

The key technological advancements in the real estate industry are highlighted in this part, along with how they are redefining the customer experience.

Big Data and Analytics: This cutting-edge real estate technology makes use of both historical and current data to offer insights into patterns, trends, prices, associations, demographic information, and future value in certain locations.

Virtual and Augmented Reality: Real estate tech businesses are utilizing VR and AR to revolutionize the efficiency, fun, and convenience of online property searches. It’s so easy to access properties right at your fingertips!

IoT: The Internet of Things (IoT) describes the household hardware and electronics that are continually transmitting and receiving data across a digital connection to the cloud. This technology’s usage in real estate is revolutionary! We may see a world of “smart properties” that smoothly combines the real and virtual worlds, thanks to the Internet of Things (IoT). IoT analytics predict that by 2025, the global IoT market, which was valued at $150 billion in 2018, will have grown to $1.5 trillion.

Machine Learning and AI: Nearly every single application we use now incorporates AI and machine learning. Real estate AI is proven to be the turning point for the sector. In real estate, machine learning and AI personalize the entire consumer experience. It enables prop-tech to suggest homes and display individualized search results based on a customer’s preferences, including values, geography, trends, and personality factors.

Blockchain: While many people are aware of the blockchain’s role in cryptocurrencies, it also has several uses in other sectors of the economy, including real estate. Blockchain technology has the potential to validate encrypted transactions and make sure that financial records have not been tampered with. It will be beneficial for investing in fractional real estate and enable landlords to sell a portion of their ownership in a particular holding.

Key Benefits of Real Estate Technology

• With the help of real estate technologies, you may automate administrative duties and cut costs to optimize your brokerage’s back-office operations and free up lots of time and resources for work like market analysis, customer communication, and transaction closure.
• Enables digital contracts and secure remote transactions for a quicker and simpler purchasing process. There won’t be as much paperwork to read and sign in the end!
• Enables networks of smart devices and sensors to provide in-depth, 24/7 insights into how renters use the space. All the information on building security and maintenance is available on the move from a mobile device, so property owners do not need to personally check their premises.
• Empowers excellent communication with all parties involved, including tenants, repairmen, maintenance staff, and others. Information caching and data storage ensure that nothing from prior discussions is missed!

Myths Regarding the Real Estate Technology

Myth #1: It is Highly Expensive

The industry’s long-standing justification for not using technology is that it will be too expensive. Property managers are concerned not just about the high cost of the gadgets but also about the installation fees.

Actual fact: When compared to other capital expenses for your property, the cost of entry may appear expensive, but many real estate technology solutions soon pay for themselves. In other words, you’ll get a quick return on investment for those prop-tech devices. In the end, technology results in quicker lease-ups, which helps your building quickly reach stabilization.

Myth #2: Prop-tech will replace staff

Real estate is hardly the only industry where people worry about technology replacing jobs. But this anxiety has persisted since the invention of the telephone.

Actual fact: Proptech automates routine, boring procedures so that employees have much more time and energy to deliver high-touch services. Using the appropriate prop-tech tools will eliminate the need to spend endless hours manually entering tenant data into databases or handling package deliveries. Staff can instead concentrate on creating meaningful relationships with tenants and preventing burnout.

Myth #3: Complication in Installing Devices

It’s undeniable that installing many prop-tech solutions used to be time-consuming and frequently necessitated wiring throughout the entire structure. Not today, though.

Actual fact: The majority of prop-tech gadgets now only need an internet connection and a power source due to the development of wireless technology. Those pricey cables that had to be run all through the entire structure are now gone. Additionally, if you know how to operate a smartphone, you can operate these gadgets.

Myth #4: Prop-tech Leads to a data breach

Some real estate experts adore pursuing the “conventional” path. However, they also put security first and foremost. Every aspect of real estate, from listing to purchasing it, demands attention to security. Therefore, it is ironic that some people are reluctant to adopt today’s cutting-edge security tools and software out of concern for data breaches.

Actual fact: It’s actually the exact opposite with cutting-edge technology like blockchain. The preferred technique to protect it is through technology, like cloud storage for crucial data. Real estate transactions are accurate, secure, and quick, thanks to technologies like the blockchain.

Conclusion

To conclude, now is the perfect time for real estate to fully embrace technology. In a culture that values technology, failing to do so will cost the sector valuable employees and tenants because there is a competitive market on all sides. Therefore one of the best ways to obtain a competitive edge in real estate is to master technology. More and more people today view technology as the norm rather than the exception. Real estate should indeed accept technological transformation if it wants to continue to be one of the top sectors of the world.

Metaverse real estate is already a big business in the modern world. The planet is poised to be entirely taken over by the real estate Metaverse, considering the most recent developments and sophistication. Although it is still a relatively new trend and a brand-new realm, in the near future, it will open up a wide range of options for investors that will be both thrilling and rewarding. In this blog, we will learn about Metaverse real estate and whether buying Property in Metaverse is a Boon or Curse.

Metaverse Real Estate – Explained!

A virtual ecosystem that is a representation of real-world situations is called Metaverse real estate. It integrates technologies like augmented reality, virtual reality, and video to create an online environment where users can play, interact, and converse digitally, much like they do in the real world. In the Metaverse, every plot of land is distinct and unique. These programmable digital assets let users interact with one another, develop socially, play games, have meetings, and do business much like they would in real-world settings.

Is the Metaverse a Good Place to Invest?

Without a doubt, the answer is yes. The term “Metaverse” alludes to a decentralized, immersive world supported by front-end 3D visuals and experiences and a blockchain-based governance system. This means that for a decentralized Metaverse to function, a number of users must invest in its native cryptocurrency token, which is intimately connected to the platform’s architecture, to have a stake in its operations. In other words, investment activity is essential to a Metaverse’s operation and success. Today’s Metaverse platforms have their own, highly sought-after cryptocurrency investment tokens. The great news is that democratic principles underlie Metaverse investments. Without a minimum entrance threshold, anyone can buy cryptocurrency assets or a portion of a cryptocurrency.

Is Metaverse Land a Wise Investment?

• Worthy Investment: Since it has the potential to increase in value over time, land in the Metaverse makes a wise investment. In the Metaverse, the land is not only limited in supply but also subject to manipulation. For instance, there will be a surplus of land in the Metaverse for a brief period of time, which will lower the price.

 

• Increased Selling Price: On the other hand, a restricted supply would result in a price increase. Furthermore, the price of land in the Metaverse has skyrocketed, with some businesses shelling out millions of dollars to purchase a plot of pixelated property in some of the most well-liked virtual worlds.

Some users have gone so far as to purchase real estate merely to win the favor of their virtual neighbors. One user, for instance, reportedly paid $450,000 to purchase land close to Snoop Dogg’s mansion in The Sandbox. Other noteworthy transactions include Republic Realm’s eye-watering $4.3 million purchase of space in The Sandbox and Tokens.com’s $2.4 million acquisition of virtual land in a competing Metaverse, Decentraland.

How much is Metaverse virtual land worth?

Prices for virtual real estate are growing substantially. According to Forbes, the price of real estate in the Metaverse increased by a startling 700% in 2021. The typical land parcel in Decentraland costs AUD$19,494, or AUD$76 per square meter. The most expensive Metaverse per square meter is Somnium Space, costing AUD$18,417 for 1 hectare, or AUD$92 per square meter. The Sandbox offers the lowest floor price per square meter at just AUD$1 while being the biggest Metaverse for virtual real estate. According to Metaverse Real Estate Prices (Mid-2022 Update), the average cost of land decreased by about 80% between February 2022 and June 2022, from $16,300 to $3,300.

How to Buy Virtual Real Estate in Metaverse?

• In the Metaverse, buying and selling digital assets is simple. The majority of Metaverse platforms are straightforward to use on a desktop computer, making it very convenient to preview virtual properties before making a purchase choice.

 

• After selecting a virtual property, you can learn more about it on one of the many platforms run by third parties that serve as resellers, such as OpenSea.io or NonFungible.com. If any sales history is available, these websites can show it to you. They can also let you search for surrounding houses that might make good comparisons.

 

• Furthermore, you must create a digital wallet to store your digital assets, including the cryptocurrency you’ll be using to pay for your purchase. To purchase land and other assets, you must link your digital wallet to the site. Your choice of wallet will be determined by the Metaverse platform you’re utilizing.

 

• Similar to buying real estate in the real world, you can buy metaverse land through brokers and property managers. However, Metaverse brokers are not bound by any regulations or licensing requirements, unlike in the real world. Therefore, be sure to deal with trustworthy parties.

Wrapping Up!

Real estate in the Metaverse is mostly a non-financial transaction (NFT). There are many frauds connected to it because of the quick technology expansion in Metaverse. Always make purchases from trustworthy and reputable websites. When selecting a virtual space, buyers should use caution and do their research. Verify whether the Metaverse you’ve selected has plans for the following 5, 10, or 15 years. The item can only be utilized as a picture or poster on the wall if it has utility; otherwise, it will only have a limited lifespan.

Although buying property in the Metaverse may seem like a risky venture, there is growing proof that this parallel reality is here to stay. There are a limited number of construction lots and a theoretically endless number of users; hence the popularity of any Metaverse platform will influence its real estate value in some way.