How Technology Is Changing The Real Estate Sector

Industry 4.0 or digital transformation is a cultural change that our society is experiencing through the use of technology. This concept implies a new organization of the means of production that is completely revolutionizing the processes of the companies of the 21st century.

The internet of things, robotics, virtual reality, artificial intelligence, and big data are some of the terms that make up the so-called fourth industrial revolution.

Through digitalization, the integration of data processing technologies and intelligent software, we try to predict and control the aspects that generate the most value in the production chain. This concept aims to guide companies towards better communication and internalization, greater sustainability and respect for the environment.

Industry 4.0 is being implemented in all sectors, including the real estate sector. Marketing and sales tools are emerging that facilitate communication and access to new audiences, provide greater personalization and customer service, and provide important information that can be analyzed and exploited later. This new scenario proposes a positive transformation of promoters, real estate companies and companies working in the real estate sector. This will result in a fantastic user experience and allows the buyer to see, navigate and set up their home, even before the building has been built.

New tools for new publics in the real estate sector

The profound change that the real estate sector is experiencing is clearly represented in the new home buyers. We refer to people born between 1980 and 2000, the so-called 'Millennials'. This public is characterized by having a multifaceted, enterprising and deeply digital personality. They are demanding immediacy and they look for a personalized purchase.

One of the characteristics of the reactivation of the sector is the progressive incorporation of this public to the real estate market. This type of clients present some interesting characteristics, such as an increase in their economic resources and a greater capacity for financing.

Internet and smartphones; keys of the real estate future

The massive use of these devices has greatly enhanced the ability of users to obtain information related to the real estate sector, reproduce visual elements or launch interactive applications.

The Internet, social networks, real estate portals, and other platforms have become powerful marketing tools to sell more and better. The scope, availability, direct interaction with the public and cost savings are some of the fundamental characteristics of these media.

Studies indicate that 81% of European citizens consider that the Internet is the best platform to look for a home and 70% of the traffic comes from mobile devices. However, segmentation is necessary depending on the quality of the devices.

Not all devices can access the latest generation programs or applications, such as those that have been developed with virtual technology or represented with 3D scenarios. We can differentiate mid-range computers and high-end computers.

The scenarios from which users access information also vary. They can do it with an interactive screen in a sales office, with a smartphone on the bus on the way to work or at home with the desktop computer.

Let's take the example of a real estate sales office. In most cases, these establishments have a mid-range computer with Internet access, and in some cases, they have high-end computers capable of playing high-resolution programs and videos. It is an important requirement to know the technical characteristics of the system since the graphics quality of the program will vary depending on these characteristics.

In the case that a user accesses with a device in the street, it is usual that he does it through the web or download the app. In this situation, the main condition is to know if the device is powerful enough to use the application. Some low-end devices will not be able to reproduce these elements, while high-end devices can do so without problems.

Another usual situation would be a person accessing the web from their desktop or laptop computer. In this case, we must segment it into mid-range computers and high-end computers.

Qualification study of real estate entities

The real estate market is composed of a broad and diversified group of companies. Real estate consultants, real estate promoters, financial entities and investment funds, and each one has its own vision of the sector.

Next, we will carry out a descriptive analysis of the types of companies that act in the real estate market, based on their innovative spirit and their ability to adopt new technologies in their projects.

There are traditional entities, which continue to rely on the usual methods and are resistant to adopting new technologies.

There are also conservative entities. These kinds of companies prefer to "follow the industry" rather than "direct" it. That is, they choose the option of seeing if the new methods work, and when they have seen that they work, they adopt them.

The path followed by these entities is too slow, taking into account that the real estate sector is in a state of maturity, and it is a good time to offer disruptive products. Usually the magnitude of the projects is associated with an increase in risk, however, technology is used precisely to minimize this problem, reduce costs, increase safety and precision in the execution thereof.

The lack of a clear technological strategy, by companies that do not adopt this methodology in their business model, denotes a considerable delay in the processes.

Finally, we have innovative companies, which are committed to different business models, understanding the needs of their public and offering products adapted to current trends. They are characterized by anticipation of the market, knowledge of the sector and differentiation of the competition.

Big Data, robotics, home automation, the Internet of things, virtual and augmented reality, interactive applications, social networks or drones are some of the technologies that make up and accompany the new real estate scenario.

The reactivation of the sector should be accompanied by a technological incorporation of guarantees, which improves the competitiveness and image of the companies that carry out their activity here.

Experience shows that the use of these systems speeds up the sale of properties and offers a modern and up-to-date image of the company. An example of this is the remote access offered by virtual reality to a large number of potential buyers, facilitating dissemination and increasing the commercialization of real estate.

Post by: Urvish Macwan, Team Leader at Hyperlink InfoSystem, a mobile app development company.