Purchase property from virtually anywhere in the world
We've been living in the midst of a digital revolution that has impacted every part of our lives in recent years. When we look at the worldwide real estate business, however, which is more traditional and archaic, we see that it has failed to adopt technological innovations. Despite the fact that the field of real estate continues to grow, with more capital moving into real estate investments to meet growing demand due to large population expansion, the process of purchasing a property has remained relatively same over the last few decades.
Consider the following scenario: you have accumulated savings from numerous jobs and investments and want to begin investing in your future. You enter your information into clever financial planning software, which pulls financial data from a variety of sources – current income, expenses, various savings, financing alternatives, and so on – and evaluates your previously specified goals. It then presents you with investment options, including the opportunity to invest in real estate abroad. You are interested in acquiring or investing in the suggested real estate property after obtaining this option, but you are unable to fly to the destination and personally inspect it, and you need as much information about the property as soon as possible. You turn to a virtual real estate agency that understands how to find and locate homes utilizing Bigdata technologies and clever algorithms. A virtual real estate agent greets you and shows you around the property using virtual reality glasses, accompanied by an avatar character who takes you on a virtual tour.
If the property is still under construction, the realtor will show you clever simulations of the property and the expected architectural design, providing you a realistic picture of the property. Finally, after gathering all essential information and agreeing to proceed with the purchase, you decide to pay for the property with a cryptocurrency, which you digitally transmit to the seller.
From the earliest expression of interest in the property to the final stage of the acquisition, the entire procedure is based entirely on technology. This procedure is known as "Proptech," which refers to a group of technologies used in the real estate market. This is one of the hottest subjects in real estate right now, but it's still a vision that hasn't come to fruition. Although the physical real estate industry still has a long way to go in terms of digitalization, there are already signs of change.
The recent acquisition of the Israeli business Skyline by real estate giant JLL for almost $100 million was one such spark. Skyline employs artificial intelligence and machine learning algorithms to digest data fast and provide real estate professionals with operational insights. Customers of JLL should be able to better analyze asset value, cut costs, uncover interesting investment opportunities, and make crucial business decisions as a result of this shift (such as when to raise rents, when to make improvements to the property or sell an asset). Other areas of technology-based investment include the financial services business, where some companies have made significant investments in financial management tools and automation projects. There are various companies in the subject of smart financial management software, including Betterment, a worldwide financial management company, and Moneytor.
In addition, early this year in Miami, a massive deal was struck in which an unidentified bidder paid $28 million for a local penthouse, which was paid exclusively in cryptocurrencies. It is widely expected that blockchain-connected real estate would be fully incorporated into the existing real estate market within the next few years. By creating smart contracts that can be performed directly between the buyer and seller with an almost instantaneous transfer of assets, blockchain technology provides unrivaled speed.
I am a strong advocate for the incorporation of cutting-edge technologies into the real estate industry. Every big participant in the sector, in my opinion, should strive towards it if they want to stay relevant and preserve a competitive advantage. During the COVID019 crisis, such adaptations from physical to virtual interactions were dynamically introduced, with personal meetings being replaced by telephone conference calls or video meetings, the handshake being replaced by an elbow-tap, and virtual open houses leading to the purchase of properties that the buyers had never seen before.
Implementing new technology in a conventional business necessitates a thorough grasp of each company's organizational culture as well as the nature of its clients. Companies in the real estate industry should hire innovation managers whose duty it is to develop a long-term innovation strategy. These executives would be in charge of scouting the market for new prospects and identifying start-ups that have developed innovative technology that can be integrated into their business and bring value.
Simultaneously, the customer's perspective must be taken into account.
Consumers in the real estate market nowadays are more concerned with the physical asset, which they can trust because of good rapport and relationships, rather than a company's online presence. A private citizen who intends to purchase real estate today still prefers to see the asset in person, meet with their real estate agent with whom they have built a trusting connection, and receive a human response to any questions that may arise throughout the purchasing process. However, as time goes on, the divide between physical and digital will close, and those technologies will be proven in the field, providing each potential buyer the confidence they need to include them into their investment strategy.
