Key Technology Trends Impacting Commercial and Residential Real Estate | RENX
Over the past few years, we have witnessed the growing impact of technology in the real estate landscape. While the pandemic has created many challenges for the industry, it has also served to accelerate already existing trends.
It has become clear that data, and technology in general, has played and will continue to play a critical role in the industry’s ongoing transformation.
Obviously, the more data we have, the more data-driven decisions we can make. Data allows real estate professionals and organizations to compile information and track trends to deliver the most recent information while allowing transparency for current and potential owners in the process.
However, for all the amazing insights data can provide, many often associate the technology in real estate with virtual signatures or virtual home visits, when in reality there are many other ways that technology has. and will continue to have an impact on commercial and residential real estate. in Canada.
Top 3 technological trends having an impact on CRE
Informing decisions through data and technology
The Canadian commercial real estate industry creates and captures a lot of data.
Property data, along with Internet of Things (IoT) data about how a building operates, can be used to make operations more efficient, improving the experience of occupants (customer, resident and patient) and identify current or potential problems.
For example, for property owners and managers, collecting real-time and historical information on all kinds of building systems via data – such as electricity, HVAC, fire / people safety, services utilities and telecommunications – can result in proactive maintenance.
In some cases, he may even be able to predict and alert a property manager of an equipment failure before it occurs, allowing him to get a replacement part before a problem occurs. does not happen.
Direct digital engagement
Technology platforms are increasingly used to introduce potential tenants to brokers and landlords, enabling connection, file sharing, and tracking transactions and data in real time.
This direct digital engagement with real estate end users ensures a safe and healthy environment, which was especially important during the pandemic. It also automates traditional processes.
Technology simplifies processes
Robotic Process Automation (RPA) is currently playing a key role in transforming various industries, from banking and finance to real estate.
With RPA, organizations can automate business processes based on mundane rules, allowing users to spend more time serving customers or other higher-value work. Companies across North America are realizing the potential of this process and integrating it into their day-to-day operations to stay competitive and profitable.
When it comes to real estate finance in particular, RPA can be used to improve operational efficiency and minimize costs by automating parts of the mortgage process.
As AI software and processes, such as RPA, reshape the digital construction landscape in Canada, two technologies are poised to reshape the physical industry landscape: precast construction and 3D printing.
3D printing in construction works automates construction processes and has the potential to limit labor-intensive works, material waste, construction time, risky operations for the construction industry. ‘man, etc.
Prefabricated construction can also help reduce many of these key issues by building the majority of a structure in an offsite facility and then safely shipping the easily assembled parts to the location. Both are likely to have continued impacts – and play a larger role – in the years to come.
The four main technological trends impacting residential real estate
Data and AI
AI and machine learning will help make the data collected more actionable.
For example, several companies are working on technology that would allow real estate agents to make visits via a tablet or with a chatbot, allowing them to increase the number of visits they can make in a day.
AI will also be able to help predict price trends more accurately in the residential real estate industry. This type of technology would examine the historical market trends of a region, while also taking into account crime, schools, transportation, and market activity.
Virtual and augmented reality
According to a National Association of Realtors survey, nearly half of all potential buyers search the Internet for properties before contacting a real estate professional. Virtual reality and augmented reality have the potential to make online research and the home buying experience even more exciting and, more importantly, accessible.
For new construction, virtual reality can create realistic architectural images and walkthroughs to help buyers understand and experience the property, even before construction begins. For property managers, creating a virtual reality tour can help new tenants become familiar with their spaces.
For example, unlike long written instructions on how to use the thermostat, a virtual tour could walk the tenant through the process, demonstrating every step of the way.
Digital and multi-perspective site visits are now possible, creating an emotional narrative around a particular property.
Drones can also be used to provide a tour of the area.
For new construction, a drone can capture the ambiance of a new neighborhood. It could also help people who are planning to move to a new city or neighborhood to get a feel for the location before going there.
Drones can also be used to detect potential hazards or maintenance issues that could lower the price of a property or be used in negotiations.
Smart homes and cities
A smart home allows homeowners to control appliances, thermostats, lights, and other devices remotely using a smartphone or tablet over an Internet connection.
Smart homes aim to provide homeowners with both convenience and savings. As such, the efficient use of data within households has now become a competitive advantage.
Smart technology isn’t just limited to homes, as cities are embracing this trend as well. Smart cities, which are rapidly gaining in popularity, install digital interfaces in traditional infrastructure or help streamline city operations through technology.
However, that’s not all they do – the real goal of smart cities is to harness data and digital technology to make better decisions, solve public problems, and improve quality of life. of those who live in the city.
The road ahead
The Canadian real estate industry is in a unique position to continue to benefit from data and technology.
If the past few years have taught us anything, it’s that data has been and will continue to be an integral part of the ongoing transformation of residential and commercial real estate.