41% of buyers state they are ready to purchase properties without seeing them. So, digital transformation in real estate becomes a top priority. According to Gartner, 67% of businesses consider digitalization a crucial factor that would help them stay competitive.
In this article, we’ll outline the top examples of digital transformation in real estate sector and explain the importance of this concept. Read on to learn more about the digitalization of real estate and how it can help company owners scale up their businesses.
The Concept of Digital Transformation in Real Estate
Digital transformation is a must for real estate agents, brokers, and other professionals that want to boost sales using the latest innovations. In the wake of the COVID-19 pandemic, some social changes became noticeable. For instance, due to the pandemic, first-time buyers in the U.S. started to use online tools for home hunting more often, as traditional options proved to be less effective.
A real estate company can improve its workflow and make its marketing efforts more effective by going digital. Technologies transform how companies communicate with clients, collect and manage data, and deliver services.
Why Does Real Estate Digital Transformation Matter?
Real Estate Digital Transformation for Businesses
A constantly growing number of companies providing real estate services use digital technologies. Here are some advantages of digital transformations for real estate businesses:
They minimize their expenses by alternating between different CRM systems, leveraging digital marketing tools, and using smart contracts.
Real Estate Digital Transformation for Customers
Companies that employ a range of real estate digital transformation technologies tailor more to their clients’ needs. Numbers speak for themselves. 97% of home buyers look for houses online. Thus, real estate agencies should focus on improving their digital experience.
Here are some advantages of real estate digital transformations for clients:
As many buyers find homes on mobile apps, it becomes vital for real estate companies to establish a solid online presence. By ensuring that all customers are fully satisfied with the process of online home buying, you can stand out among the rest.
Key Elements of Digital Transformation in Real Estate
To better grasp the meaning of a real estate digital transformation, business owners should pay attention to the main elements of this process. Below, we have briefly outlined the six aspects of digitization.
Improved Customer Journey
These days, a client prefers to find a real estate property using a mobile app, taking a 3D tour, and quickly connecting to a broker online. By focusing on creating high-quality 3D tours, a real estate agency improves customer experience.
Personalized Client Experience
Digitization allows companies to meet the demands of their clients. As every home buyer has unique requirements, it’s essential to add various search filters when building a real estate app. Remember to provide customers with detailed information about real estate properties.
Creating Complex Ecosystems
What’s common among the best examples of digital transformation in real estate? They facilitate the process of home buying for all parties. A digital ecosystem is a win-win option. For instance, real estate companies ensure the optimized workflow by using cloud-based solutions and setting up a paperless office.
The most important digital transformation elements in real estate are data-based solutions that empower business analytics. Access to big data allows making data-driven decisions based on multiple factors. Businesses and clients have information about urban development projects, infrastructure, crime rates, noise levels, and environmental issues in the area. Complex mobile apps use algorithm decisions based on the customer input.
Space-as-a-service (SPaaS) refers to space rented by the hour, day, week, month or other period. What explains the popularity of such on-demand services? People increasingly tend to prefer low-cost, high-flexibility to long-term leases. Digitization of real estate entirely transformed the way properties are managed. Keyless access, food delivery, temperature control, and other technologies make SPaaS solutions possible.
The aforementioned digital transformation examples in real estate demonstrate that new technologies change the business processes in the industry as well. Сloud-based solutions, VR tours, smart contracts, mobile apps, and big data let companies speed up operations and increase profits.
Top Digital Transformation Technologies In Real Estate
There are nine key technologies of digital transformation in real estate that transformed this fastest-growing industry. Below, we will briefly outline how you could use them for developing real estate businesses.
Real estate companies need to analyze their competitors and customer behavior to succeed. By using dedicated tools, they can estimate a property's potential and streamline various real estate property management tasks.
AR & VR
By adding VR tours to listings, companies can attract customers who don’t have much time to examine a property offline. AR solutions also make it easier for customers to imagine how a property looks in real life.
Real-Time Tracking of Transactions and Smart Contracts
Realtors with many clients can streamline their workflow with tech. Dedicated CRMs and cloud-based services help manage large bulks of data. Smart contracts streamline deal closing. Transaction-tracking tools also make it easier to establish a paperless office where everything happens online.
Blockchain technology is an excellent example of digital innovation in real estate. By implementing blockchain solutions, companies automate transactions and make them secure. Blockchain technology makes real estate data accessible to everyone.
According to researchers, the value of the AI chatbot market is expected to increase to $5.6 billion by 2023. Real estate agencies use them for improving customer service, facilitating searches, collecting data about their clients, and making their marketing efforts more targeted. Consider contacting Integrio if you are looking for high-quality AI development services.
Property Management Apps
The value of the property management software market reached $3.04 billion. To meet the increased demand for property management tools, developers created solutions like AppFolio, Yardi, Entrata, and more.
Real Estate Crowdfunding
The global real estate crowdfunding market reached $10.78 billion in 2021 and is expected to increase to $250.6 billion by 2030. Real estate crowdfunding enables small companies and investors to access a wider market using limited funds.
Alternative Payment Methods
Many potential customers won’t make a purchase unless they can use a payment method of their choice. Bank transfers and direct debit payments are less safe than alternative payment options, such as cryptocurrencies, prepaid gift cards, cash-based vouchers, or digital wallets. It’s expected that over60% of the world's population will use digital wallets by 2026. This is real estate companies need to integrate different payment methods.
Space as a Service Solutions
Space-as-a-Service stands out among other growing trends, as it offers unprecedented leasing flexibility. Companies can leverage SPaaS solutions when investing in living spaces and the storage sector as well. This model allows customers to pay only for the space they use.
5 Examples of Digital Transformation in Real Estate from Global Companies
When creating digital solutions for real estate businesses, app and software development companies use recent technologies, including blockchain and AI, to make payments secure, speed up processes, and improve matching algorithms.
Redfin is a perfect example of digital technology in real estate. Instead of replacing agents, this AI app provides them with helpful tools for optimizing their workflow. It comes with an in-built matchmaking tool that facilitates finding the perfect home.
Unlike other popular products, this real estate application comes with a range of AI lead-generation tools. It analyzes information about web searches, clicks, and browsing activity. As a result, real estate agents get all they need to plan their resources, promote their listings, and close deals quickly.
SafeWire is an excellent solution for real estate companies that want to make their transactions more secure. This fraud prevention platform provides one of the best real estate digital transformation examples. Real estate agents and brokers use it. Using its blockchain-based tools, companies can verify the identities of buyers and sellers.
Leveraging recent trends, the creators of this platform developed an AI real estate agent that can capture leads from multiple sources. Using this tool, companies can improve their marketing efforts and increase conversions.
What Are the Challenges of Digital Transformation in Real Estate?
Digital transformation in real estate industry allows companies to minimize expenses, automate processes and improve data security. However, there are some possible disadvantages.
Due to rising interest rates, the real estate market braces for layoffs, with some companies firing 18% of their workforce. According to some predictions, digitization may significantly contribute to this trend.
Technology Adoption Issues
Unless a company has tech-savvy employees, it might face difficulties in digitizing its operations. It might prevent it from making the most out of digital technologies.
Consider Integrio Systems as Your Trusted Partner
Integrio Systems provides top-level real estate software development services and creates data-based solutions for those who want to increase their sales. We have teams of top-level professionals based in Canada, Poland, and Ukraine.
Our specialists can optimize your business processes and make it easier for buyers to find favorable mortgage conditions. In addition, we create AR and VR solutions for those who prefer to take online walk-through tours.
Digital Transformation of A Property Management Company: Integrio’s Experience
Since 2010, our team has been working on Homebuzz. If you take a closer look at the case study of property management company, you will see how our developers helped this business undergo a digital transformation. The startup was looking for a trusted software development team to create an easy-to-scale ERP solution. We helped it to streamline property management operations and marketing tasks.
Our team created practical digital marketing tools for posting and updating real estate listings from a single dashboard. In addition, we streamlined the booking, appointment scheduling, and facility maintenance processes. Thanks to POS integration, the clients of Homebuzz can now select suitable payment methods as well. Get in touch with Integrio Systems now to digitize your real estate business!