Top 4 Disruptive Real Estate Technology Trends for 2023

One of the things that has enabled the real estate industry to weather the storm in the last couple of years, is the use of technology. Whether it is the quality of interaction with customers during the pandemic induced lockdown or deep process optimization within real estate companies, the impact of real estate technology has been widespread. 

In fact, according to the Technology and The Future of Real Estate Investment Management report created by the University of Oxford, in 2020, 53% of real estate companies are now directly investing in technology. 

With 2023 within striking distance, it will be worthwhile to look at some of the technological trends in real estate that will further dominate the industry in the coming year.

#1. Virtual Reality

Admittedly the use of Virtual Reality as well as Augmented Reality in the real estate sector is not a new trend. It, however, saw enhanced usage during the pandemic where Virtual Property tours became increasingly popular. Going forward, a Matterport survey has shown that listings with 3D virtual walkthrough close 31% faster and sell for up to 9% more.

With few technologies being as immersive as VR, its use as property tech will continue to grow, whether it is to do with selling of properties or renting them out. 

#2. AI-Enhanced Analytics

Whether it is identifying potential buyers/sellers, generating digital marketing campaigns or determining listing prices, the use of data in real estate has been all-pervasive. As per a McKinsey’s research, real estate applications based on machine-learning models can predict changes in rent rate with 90% accuracy. 

The use of AI-enhanced analytics is likely to gain even more momentum in 2023. While real estate investors are likely to use AI to analyze deals on the one hand, it will be used by real estate companies to understand consumer behavior and offered targeted solutions, on the other. What real estate industry will also witness in 2023 is quantum computing AI, which as an industry is slated to hit a figure of $1,765 million in 2026, up from $470 million in 2021. One of its applications will be seen in terms of predicting the value of individual real estate properties, which will lead to optimized buying, selling, and investing strategies.

#3. Fractional Ownership

While Fractional Ownership may not be seen as a tech trend, it will be accelerated by the use of technology in 2023. While so far most REITs have laid down minimum capital requirements, with the growth of several PropTech platforms, the need for large investments to participate in this trend will be taken away. What the industry will witness is far more access to investing in real estate riding on the fractional ownership wave. Further, the use of Blockchain technology will lead to verifying encrypted transactions which will help in fractional property investment and allow landlords to sell their stake in a given holding. 

#4. Metaverse

Last, but definitely not the least, what will see growth in terms of real estate industry trends is the growth of virtual real estate, with the Global Metaverse real estate market that was estimated to be $821.9 million in 2021,  projected to increase to $5.95 billion by 2028. In fact this trend will be facilitated by the growth in other tech trends such as the growth of VR & AR. Needless to mention, however, that the investor will remain cautious in shifting their real estate investments from physical holdings to virtual properties and instead will use it to diversify his portfolio.

To Sum Up

Clearly 2023 holds a lot of promise when it comes to the real estate industry. That the industry will be propelled to newer heights aided by technology, is a given. In fact it is the use of technology that will both improve efficiency & bottom line of the early adopters.