Driven by a projected $12.9 billion global Proptech market by 2025, the real estate industry is undergoing a tech transformation. From cybersecurity and big data to the rise of automation and AI, these advancements are revolutionizing how we search for and buy and how companies manage properties.
This article explores 11 key real estate technology trends shaping the sector in 2024, along with insights on how Jalasoft's implementation engineers can help you leverage these trending developments. Let's explore the future of real estate together.
Real Estate Market Overview in 2023
At a glance, the global real estate market continued upward in 2023, with a market value of USD 9.8 trillion and impressive projections reaching USD 14.54 trillion by 2030.
When looking ahead, several factors point towards this continued market expansion, including:
Urbanization on the rise: As more people move to cities, the demand for urban housing and commercial space is expected to increase.
Increased demand for affordable housing: Governments around the world are prioritizing affordable housing initiatives to cater to a broader range of income segments.
Rising population: The global population continues to expand, reaching 8 billion in 2022 compared to 7 billion in 2011. This increase in population is skyrocketing the demand for housing and infrastructure.
However, economic constraints also impacted the real estate market globally. In some countries, recessions caused the economy and real estate technology trends to slow down, profoundly affecting the sector’s development.
How Technology is Disrupting the Real Estate Industry?
Going back to the abovementioned growth, it’s crystal clear there will be a surge in real estate technology trends despite the bumps on the road. Forward-thinking companies are already exploring blockchain-powered transactions, leveraging data analytics to gain valuable market insights and utilizing AR/VR technology to enhance the property viewing experience. Deciding between staff augmentation Vs. managed services can help businesses determine the best approach to integrate these technologies effectively
Additionally, AI is increasingly important in predicting rental prices and determining house values. Overall, these innovations promise to streamline processes, provide valuable information, and create a more connected real estate experience.
What is the Future of Real Estate Technology?
Blockchain
2024 is expected to be a tipping point, with spending on Blockchain solutions reaching USD 19 billion. This shift will disrupt several sectors, including real estate, thanks to tokenization and smart contracts. Tokenization divides properties into smaller, tradable units, opening investment opportunities to a broader audience. Meanwhile, smart contracts automate agreements, accelerating the verification, search, and acquisition processes.
AI/Automation
Automation is one of the real estate technology trends turbocharging the sector, driven by advancements in AI. AI algorithms can potentially calculate accurate property values in no time. Automated systems can handle repetitive tasks like rent collection and tenant screening, freeing up real estate professionals to focus on strategic decisions and client relationships.
Metaverse
This immersive technology has come to open doors for both buyers and sellers: buyers can easily explore a wider range of properties, while sellers can reach a global audience, leading to more investment opportunities beyond borders. With the metaverse market in real estate projected to expand from $2.17 billion in 2023 to a massive $54.95 billion by 2033, this technology is set to foster a more interconnected marketplace.
Digital Twins/3D Modeling
Digital Twins uses real-time data from sensors and IoT devices to create a 3D model that reflects the building's condition, energy use, and potential environmental impact. For property managers, digital twins offer real-time insights for informed decision-making optimizing maintenance and investment strategies.
Augmented Reality (AR) and Virtual Reality (VR)
Thanks to the immersive technologies of AR/VR that enable remote property exploration and visualization, buyers can make informed decisions with virtual tours and personalized modifications. On the other hand, sellers can showcase properties more attractively and reduce the need for physical showings, ultimately boosting efficiency and engagement.
Internet of Things (IoT)
IoT is one of the real estate technology trends disrupting the scene by offering valuable insights into property usage and occupant behavior. Real estate professionals can make informed decisions while optimizing operations by analyzing real-time data. IoT can also be integrated with smart locks, climate control systems, and even automated notifications, creating a more efficient and personalized experience for property owners and tenants.
Predictive Analytics
This real estate technology trend utilizes advanced algorithms to forecast future market conditions. With this knowledge, investors and real estate professionals can make smarter decisions, predicting market movements and capitalizing on hidden opportunities. The wide specter of predictive analytics impact can go from investment strategies to asset management.
Building Management Systems (BMS)
These systems automate tasks like scheduling maintenance and controlling access, freeing up valuable resources for property managers. But the benefits go beyond mere efficiency. BMS can also detect potential issues before they escalate, saving money and preventing headaches.
Drones
Drones are taking real estate marketing to new heights, for real. These devices can film everything from apartments to large commercial spaces, showcasing them in detail with high-quality footage and 360-degree panoramas. This innovation streamlines inspections of hard-to-reach areas and even allows for tracking neighborhood changes over time.
Big Data
Big Data is another real estate technology trend that will help businesses stay ahead of the curve. By leveraging vast datasets, real estate platforms can recommend properties more intelligently, while companies utilize data for strategic decisions, from identifying revaluing areas to anticipating risks and optimizing building layouts.
Data Security
As the real estate industry embraces new technologies, the data generated increases significantly, raising concerns about data protection. That's why the sector proactively addresses cybersecurity risks by monitoring and tracking compliance through advanced encryption technologies.
Leverage the Power of Real Estate Technology Trends with Jalasoft
As the real estate industry embraces these technologies, the future looks promising for organizations leveraging these innovations.
From blockchain and IoT to AI and predictive analytics, these trends are changing how properties are managed, marketed, and transacted. However, efficiently implementing these advancements can be challenging, leading to increased costs.
That's why, at Jalasoft, we offer experienced implementation engineers who can help your business harness the potential of real estate technology trends. Our experts on demand can identify alternative solutions that align with your business needs and challenges.
With Jalasoft, you can get the right expertise, integrating these emerging technologies without friction across your existing systems and ensuring efficient operation.
