10 Software Development Trends in Real Estate Industry to Look in 2024

The real estate industry has been through its highs and lows over the past few years, with technology not being an exception. However, if you are not up-to-date with the latest trends and advancements in technology, your business can quickly fall behind the competition and put you at risk of losing potential clients.

In order to keep up with the changing dynamics of the business, savvy real estate developers should keep an eye on upcoming trends in software development that will help them get ahead of their competitors and stay on top of their game.

Being a leading software development company, we have provided insight into ten software development trends in the real estate industry that you should be following. Whether you’re looking to develop your own web-based application or just wondering which tech stack you should use in your next project, here are 10 software development trends in the real-estate industry you should know about.

10 Real Estate Important Technology Trends

The real estate sector is welcoming a range of real estate technology trends causing spectacular real estate development. Let’s see how.

1. Blockchain

A blockchain is a public ledger or digital database stored across multiple peer-to-peer connected networks. Cryptocurrency transactions utilize blockchain terms. The data stored in this network is highly secure and decentralized. As a result, you can trust the database’s security without relying on the protection of a third party. But, how is it relevant for the real estate industry which is already going through a significant digital transformation?

To begin with, the introduction of blockchain promotes security and increases trust and eases property management. Since blockchain technology is decentralized, it can be used to draw smart contracts and previous ownership records with ease. The realtors, real estate companies, or real estate agents use Distributed Ledger Technology (DLT) to increase the transparency of real estate transactions.

Commercial Real Estate (CRE) is booming. And start-ups in the real estate industry are bringing advanced technologies (including commercial real estate technology) to facilitate faster and smoother transactions. Some are even attempting to fix the inefficiencies of the real estate sector by introducing blockchain technology into the mix. They are putting more emphasis on smart contracts. Smart contracts are simple programs that are automatically executed whenever their predefined conditions are met. Consequently, they reduce the parties’ involvement and the time lost in drafting regular contracts.

What are the Advantages of Blockchain in Real Estate?

• Approval of loan mortgages becomes easier because blockchain produces immutable data about transactions, previous ownerships, smart contracts, and real-time payments.
• Again, thanks to the smart contract features, property buyers don’t have to worry about intermediaries like lawyers, brokers, and banks and can get greater value for their money.
• Blockchain allows for the fractional ownership of the properties. This opens real estate market investment opportunities for property investors who might not have the capital to buy real estate assets outright.

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2. AR and VR (3D models)

The gaming industry can no longer reserve Augmented Reality (AR) and Virtual Reality (VR). Real estate agents have slowly started integrating this technology into their sales pitches. AR and VR help prospective buyers envision their dream homes and its interior without actually having to do anything. And closing the deal becomes a lot easier after the buyer has had a positive digital viewing experience. This leads to smarter investment decisions and efficient property management.

Virtual Reality technology allows you to create interactive 3D models of the house and show them to the user with the help of VR glasses. International buyers, who have trouble traveling, can easily view their potential assets without physically moving. There are a couple of ways to use VR technology to your advantage. First, hire 3D modelers to create house tours in a digital environment compatible with VR technology. We recommend this method for properties that are still under construction. Next, record a house tour using a 360° camera. You can easily convert these videos into VR walkthrough videos with real furniture and fixtures.

Now, Augmented Reality is slightly different from VR. As the name suggests, AR augments the surrounding by superimposing digital models on real-world spaces. It especially comes in handy when the real estate companies or real estate agents have to sell an empty house or one with outdated fixtures. And staging the property using rented furniture can chip away their commission margins. Therefore, staging the property with Augmented Reality technology helps the real estate agents and real estate companies make more profit. At the same time, the prospects can get a glimpse of the potential house without having to exercise too much of their imagination.

What are the Advantages of 3d Virtual Tours in the Real Estate Market?

• Interactive 3D virtual tours are one of the most exciting real estate technology trends. It allows the users to visit each room and inspect each element of the room in great detail.
• Realtors can instantly establish a self of ownership by helping potential property owners visualize their dream homes without doing any modifications.
• These virtual tours are extremely versatile, and you can model them differently to suit the needs of different buyers and real estate investors.

3. Business Intelligence and Predictive Analysis

Business intelligence has become an indisputable necessity in multiple industries, so why should real estate be any different?

Let’s understand with an example.

Zillow, a tech real-estate marketplace, uses business intelligence while buying and selling properties. To begin with, they use predictive data analysis to find properties with low acquisition cost and high resale value. Then they buy such properties for renting and reselling purposes. Similarly, while listing these properties on their marketplace, they use predictive modeling to find the perfect price to attract potential buyers and undercut their competitors. It should be clear from this example that business intelligence is an invaluable addition to your business.

But how does this work? Constant technological advancement has resulted in a massive influx of customer data. Most of these single data points are not that useful. But with business intelligence, you find emerging patterns and trends instead of just relying on historical data. Deploying a predictive analysis model will help find patterns based on online interactions, spending capabilities, and preferences to predict the consumer’s behaviour. This enables you to find prospects more likely to convert into customers after a couple of showings. Also, predictive analysis helps you find more appropriate listings based on the customer’s criteria. Furthermore, you can optimize your search results to help customers search for more suitable properties for their living situations.

In addition to helping streamline the sales process, business intelligence helps generate more leads by optimizing your marketing efforts. You can target consumers with relevant ads and content based on their likes and dislikes. Of course, real estate recommendations and content are not as simple as the eCommerce domain. But you can still engage the customer with the content of house hunting-oriented tips and tricks. If you are looking to develop data-driven software for your real-estate business, hire software developers from Space-O, who are well-versed in using the latest technology stack for your business.

What are the Advantages of Business Intelligence in Real Estate?

• Business intelligence tools help track the previous performance of the market to set the price for the listings.
• Simplifies the property buying process by recommending appropriate offerings to potential buyers.
• Instead of generic information tracking, business intelligence helps your performance metrics by aligning them with your business goals.

4. Internet of Things (IoT)

We live in an era of rising volatility in the housing market. This is due to increased demand for affordable housing, infrastructure crisis, and public indebtedness. At this time, IoT aims to improve the quality of real estate business transactions. IoT reduces operational costs and provides real-time security with additional surveillance. Additionally, property management becomes more accessible thanks to maintenance analytics.

Like some of the real estate technologies mentioned above, IoT benefits you and your customers. You can connect the sensors to multiple objects present on the property. The real estate agent and the user can see all the necessary information simultaneously. After the acquisition of the property, the user can automate some of the mundane operations, create a more consistent user experience and identify equipment flaws.

This integration of IoT with real estate is also known as smart real estate. These technologies convert most physical objects in the property into sources of information. Thus realtors use them to decrease operating costs, improve asset life and increase revenue. All these technologies utilize real-time data to offer unique insights to the users and tenants to improve their living situations. If you have an idea about IoT, but don’t know how to start, get in touch with a leading software development consulting provider to get the right mentoring for your business.

What are the Advantages of the Internet of Things in Real Estate?

• IoT technology can optimize the consumption of resources with smart sensors. For example, it can switch the fans and lights off when it notices someone has left the room.
• Integration of IoT also protects the customer from unnatural and accidental accidents. For example, smart doorbells and window latches alarm the tenants whenever they notice a break-in attempt. In the same way, smoke and gas detectors notify the users about accidental gas leaks and fires.
• Lastly, the user can receive all these notifications directly to their mobile devices because of IoT.

5. Artificial Intelligence

You can infinitely improve the computing capabilities of your business intelligence and predictive analytics system by coupling it with AI. Can property management technology trends get any better? The most prominent use of AI is in reducing human errors. You can integrate AI with the system during the development of the property. It can prevent the architects from entering incorrect values while building the mock-ups.

Not talking about AI without mentioning its incredible analytical prowess would not be fair. By running and re-running multiple simulations, AI can offer the proper designs for a building that will appeal to a larger audience. Moreover, it can set the selling price of the property based on the local, national and international property market.

Do you want to learn more about AI trends in software development? Read our blog post on the latest software development trends. Follow this blog to learn about the most promising trends employed by entrepreneurs or business professionals during their software development.

What are the Advantages of Using AI in Real Estate?

• AI’s sophisticated algorithms help you choose the best agents for your real estate firms by removing the recruiter’s bias.
• AI also vastly improves the transaction process. Realtors experience faster closing times and thorough background reports of their clients.
• AI also helps the house flippers by assisting them with appraisals and figuring out the resale value of their property.

6. Geolocation And Localization

While these two terms sound similar, they could not be more different. Geolocation helps you create highly targeted ads for your customers. For example, Houzz sends highly customized emails to its subscribers containing the top searches in the locality whenever they enter the said area. Geolocation is also beneficial for real estate companies that offer moving services. These companies can send the location of the moving truck to their customers. Geolocation is also used in the AI incident management software to alert the closest fire services in case of unforeseen disasters.

On the other hand, localization is all about optimizing your property websites and mobile applications to display content concerning the local cultural context. This increases the accessibility of your website or mobile application and increases the number of leads. It also creates a positive brand image by positioning the real estate companies as an entity that cares enough to present its website in local languages. The localization process is expensive as you translate the languages and modify the SEO accordingly. But, in the long run, the high ROI justifies the expense.

What are the Advantages of Localization and Geolocation in Real Estate?

• Geolocation provides a high marketing ROI as it helps the brand create more targeted ads.
• Localization enables you to stay ahead of competitors with a highly customizable web page for your visitors.
• Geolocation also improves the overall recommendations of the mobile application.

7. Cloud Integration in Software

When you think about it, the real estate business is more mobile than some other business models. The realtors and agents always have to be on the move. It is also a relationship-driven sector, so you must prioritize collaboration, sales, and client service over everything else. As you can see, it is the perfect business to host cloud computing solutions.

Cloud computing keeps the realtors updated about their leads and existing and prospective clients. More advanced cloud-based property management software will even list down the necessary preferences of the customer. This helps them modify their sales pitch. Cloud computing also opens new marketing avenues with email campaigns. Cloud real estate management software also hosts CRM, which captures all the necessary details about past and present clientele.

Cloud computing enhances the scalability of your real estate company. Since everything is on the cloud, you can move and expand your business to wherever you like. In the same way, onboarding realtors from around the world is also relatively easy. If you are looking to integrate cloud technology into your real-estate software, contact one of the leading real estate property management companies in Canada to develop a custom solution.

What are the Advantages of Cloud Integration in Real Estate Software?

• You can save substantial money as the upgrades, power, software license, and cloud provider handles infrastructure.
• The data security is also high, and you do not have to worry about handling all the sensitive information.
• Allows for a flexible working environment for your agents and realtors.

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8. Automation in Real Estate

IoT technology opens the way for home automation which is one of the top property management technology trends. Smart home automation is usually a hub connected to a wide range of devices, appliances, systems, and software. There are even smart dustbins, and no, we are not kidding. Now, you can access this hub from the controller or your mobile phone. This means you can even control certain functions of your home from anywhere worldwide, as long as you maintain an internet connection. Or, just for fun, you could turn the AC in your bedroom from your living room.

Now, home automation does not come cheap. Setting up all the interconnected devices can put a small dent in the wallet. However, once you set up the main hub, you are free to add or remove devices at your own pace. First, users can start by automating the lights and fans. Then, slowly move to bigger appliances. Another benefit of smart home appliances is that most of them come with a camera. So, users can monitor your home without any additional security cameras. Given that it is one of the top real estate trends, this real estate tech can be especially exciting for commercial buildings.

What are the Advantages of Home Automation in Real Estate Software?

• One of the major benefits of home automation is convenience, and that’s why it sells. Imagine, after working out in the gym, users could turn on the AC at their home and return to a chilled room.
• Increases security with smart notifications and alerts.
• Smart home automation is also environmentally friendly as it regulates energy usage depending on electricity load and atmosphere.

9. Conversational AI Chatbots

As mentioned earlier, the real estate business is relationship based. It is only natural for prospects and clients to expect constant support and instant answers. This is where AI chatbots come in with their artificial intelligence algorithms assistance. The AI chatbots will answer most of the simple queries from new and existing customers. This will help retain existing customers and help new ones better understand the property they are buying. The more advanced version of artificial intelligence chatbots is known as virtual assistants. Virtual assistants will help you follow up with your leads and send important emails. This enables you to free up more time to handle the critical aspects of the business and is excellent for easy property management.

The AI chatbots are also operational 24/7. So, even if the customer gets doubt in the middle of the night, they will have help at their disposal. To make it even simpler, you can integrate these AI chatbots with existing popular messengers such as WhatsApp and Facebook Messenger.

However, if you are running an enterprise business and want to leverage technology, read this blog post on the latest trends in enterprise software development. Read this post and learn how technology can help you to resolve enterprise challenges and achieve maximum efficiency and prompt results in business.

What are the Advantages of Conversational AI Chatbots in Real Estate Software?

• Building a conversational AI bot is much more cost-effective than outsourcing the function to a call center.
• You can modify the bots to launch virtual house tours on-demand.
• Chatbots are scalable. As your customer base increases, you have to increase the servers’ handling capacity to accommodate your new users’ requests.

10. Use of Building Information Modeling (BIM)

BIM is a business intelligence system specifically designed for the real estate industry taking real estate technology trends to new levels. It combines all the relevant information from the property and offers valuable insights. Usually, the BIM systems, one of the top real estate trends, create 3D models of the projects. This gives a rough idea of how the property will look after construction. The AR and VR engineers can use these models to add digital furniture and fixtures and prepare them for virtual tours.

What are the Advantages of BIM in Real Estate Software?

• BIM models show how the materials will look on the property after completion.
• It becomes easier to manage the development of the project. The managers can measure progress by comparing real-world development with the 3D model.

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Develop Your Real Estate With The Right Property Technology

Undoubtedly, the inclusion of advanced technology is slowly changing the real estate industry. This is transforming the global real estate market. More and more customers want sophisticated tech resulting in smart homes. And more realtors including real estate startups are looking to streamline their real estate businesses. This is clearly leading to real estate development. Adapting and employing all the real estate technology trends and emerging technologies is the only way to excel your business in the real estate market.