Though COVID-19 has changed the dynamics of many things, the pandemic has majorly damaged the global markets, but the real estate market has prospered.
During the pandemic, house prices were noticed to be the highest in the 15 years, and there is also a significant change of 11.2% in the annual growth rate. The technology in real estate is enhancing and evolving every day. And the pace is going to be faster in 2022.
Property technology, aka Prop-tech, has grown by 10.72% from 2015 to 2019. The investment during 2018 in the digital industry was worth $8.3 billion.
In the coming years and beyond, this amount will only rise. However, the pandemic also revealed vulnerabilities and inadequacies in the real estate digital capabilities.
What is prop-tech?
It is a mixture of two terms Property and Technology. It covers real estate solutions and involves the growth of the digital industry in the property.
Prop-tech is also known as commercial real estate technology (CRE-Tech) or simply real estate technology (RE-Tech). Looking into the broader perspective, it means merely incorporating software-based real estate tools and applications.
In the past year, prop-tech showed no signs of decline as it connected with a new generation of consumers. Also, the realtors are looking forward to incorporating digital/intelligent solutions to facilitate convenient living conditions.
What will change in the real estate market in 2022?
When the pandemic is over, if the pandemic is over, to be more precise, the millennials will be reaching the average age to become the first homebuyers.
Millennials are the most significant and newest generation of buyers. They tend to change the housing patterns and the digital demand in the real estate industry.
By 2025 6.4 million new households will be created to accommodate a sizeable human population according to the wave of demand. So the real estate industry will explore the boom in 2022 and beyond.
As the technology grows, as is the millennials’ interest in prop-tech. A study reveals that around 40% of the millennials are comfortable buying a home online, and 59% are optimistic about making an offer on a home they have just visited digitally.
Moreover, 80% of millennials are interested in 3D virtual tours when buying a new home.
Well, honestly, these innovative digital tools will make the real estate market much more modern and impactful. It will become a safe space to invest and buy property for buyers and sellers.
Real Estate technology trends in 2022
So, what are the following real estate technology market trends? The following are just a few of the many examples of trends that are shaping the property industry. They also include commercial real estate future technology trends.
Artificial intelligence (AI) development
Real Estate companies are becoming more AI-based, and they are launching AI-influenced services as well. Artificial intelligence is capable of forecasting reliable market trends. This technology can show 100% precise guess about the future prices of renting and buying a house.
Geographical boundaries do not bind it as they can provide data from different cities. AI is mainly used for businesses considering the future in the real estate market.
Some major companies such as Compass, LoanSnap, and Zillow have utilized AI to help buyers look for the perfect home opportunities. AI can simplify work for real estate agents and other stakeholders.
Augmented reality and virtual reality
Real Estate businesses incorporate advanced technologies to prosper and reach the global markets. Augmented and virtual reality is a way to view properties remotely and boost the business.
The companies can grow faster if they start including 3D tours. Moreover, construction companies are also using this fantastic technology to sell more apartments.
Thus, they attract experts who create videos and photos of future houses and apartments. And potential customers see what they can buy.
Blockchain
We know a relation between blockchain and real estate is not making much sense to tech-savvy readers. Well, many people know how the blockchain is incorporated into cryptocurrency. It also has potential applications in other areas such as commerce and the real estate industry.
Blockchain technology can cross-check the encrypted transactions and make sure that these are free of fraud. It will have a resourceful impact on the management of financial records. Moreover, the landlords will be able to sell portions of their property, and it is perfect for fractional property investment.
The technology will also enable essential documents such as property titles to be stored securely. As with other market sectors, the surface has only been scratched as far as the potential in employing the blockchain for other cases in the real estate industry.
Mobile Websites and Apps
One of the best and most efficient technologies used in the industry is mobile applications. Real estate websites and applications are becoming popular. Online presence makes it easy for customers to reach and make a purchase.
Moreover, the sellers can display available property for rent and purchase with little to no effort.
Real Estate apps and websites have a lot of advantages, and it provides potential buyers with and safe space to look for the perfect house or apartment. Moreover, its database is updated from time to time. So, you will be getting new information on the market in no time.
Consumers interested in purchasing, selling, or renting a property can also use websites and apps tailored to their needs. They can help you locate the house you want and put you in touch with a real estate agent to help facilitate the deal.
Internet of Things (IoT)
Internet of Things (IoT) is being incorporated in almost every field of study. It is easy to develop an IoT-influenced application to transform an ordinary home into a smart home.
This technology revolution requires embedding sensors and computing tech inserted into everyday use items. The primary purpose of IoT is to simplify people’s lives. Imagine that a person can remotely control the tasks in the apartment like cleaning, room temperature, lighting, and others via smartphone.
Amazing, right? You can also create a virtual assistant that can communicate with the residents and the people outside the front door when no one is at home.
But you also need to understand that to get the most out of this technology; you need to have a good Internet connection. Therefore, we recommend using 5G, which provides greater bandwidth, resulting in higher download speeds.
The Future
The trend of innovation is rising with each passing day, raising the bar of businesses. Homebuyers are interested in using real estate mobile apps and websites to look for the perfect house.
Moreover, the experts predicted that by 2050 this planet would need an excessive amount of homes to accommodate a considerable amount of people. Also, people want to buy their own homes to stay clear of the crowd.
So, companies will be creating apps, developers will be working on Virtual Reality, and other people should make use of such innovations a worthwhile experience!
Frequently Asked Questions
What will real estate look like in 2022?
Housing prices will increase by about 20% in 2021, and while the rate of increase will moderate, experts predict that prices will continue to climb in general. The National Association of Realtors forecasts a 5.7 percent increase in housing prices in 2022, while Realtor.com predicts a 2.9 percent increase.
Will the housing market crash in 2026?
The residential real estate market in the United States is expected to grow at a CAGR of 5.77 percent by 2026. With the country’s challenging economic situation expected to persist, the residential real estate market in the United States is expected to increase somewhat in 2020 and 2021. The demand for these items is still on the rise.