The New Year is well underway. As time marches on, the real estate industry - as always - continues to adapt and change to new paradigms. As ever, real estate markets will continue to be driven by new and emergent technology trends as today’s experimental approaches become tomorrow’s common tools. Here’s what’s on the horizon for 2023 when it comes to the real estate technology trends that are expected to be big news in the coming year.
Artificial intelligence has been one of the biggest growth sectors recently, and not just for its applications in the real estate sector - the entirety of the world seems to be afire with the potential of AI in revolutionizing business processes. Advanced machine learning algorithms have been demonstrating increased capabilities in everything from automating the creation of marketing copy to even the generation of works of art that are indistinguishable from those created by a human artist.
In the real estate markets, intelligent algorithms are already being used to analyze massive amounts of economic data, resulting in an ever-growing ability to predict factors that will impact the real estate market. House price estimation tools, predictive modeling for rental growth, and methods for estimating home buyer debt levels for financing property purchases are just a few ways that AI is set to revolutionize the markets in 2023 and beyond.
Another interesting development spearheaded by the rise of artificial intelligence is client development automation. AI chatbots, once considered little more than experimental proofs of concept, have now begun to proliferate thanks to developments in machine learning. In fact, some chatbots have become advanced enough to carry on a passable conversation with a person well enough to provide that person with the information they’re looking for.
Chatbots can be used to great effect by real estate professionals when it comes to maintaining and developing relationships with new and existing clients. The ability to provide clear and relevant solutions to clients, deliver accurate answers to questions, and further facilitate communications between real estate agents and clients is invaluable. There are even some voice-based chatbots that, while perhaps not ready for primetime just yet, may very well be more than advanced enough for implementation by the end of this year.
Cryptocurrency has been a major topic of interest for over a decade, though recently major shifts in the valuation of these digital currencies, as well as the environmental impact of the massive amounts of electricity used to generate cryptocurrency, have complicated matters and led many to question the practical use of digital tokens for payment. However, the underlying technology behind cryptocurrency - the blockchain database - may become even more prevalent in the real estate sector.
The advantages of blockchain-based digital ledger databases include high levels of security and transparency and highly responsive transactions. They’re relatively low-cost to implement and maintain and can help reduce or even eliminate much of the paperwork that goes into contracts for selling property. All these reasons - and even more - mean that it’s likely we’ll see major players leveraging blockchain-based technologies to improve compliance and reduce instances of real estate fraud in 2023.
Smart technologies have been growing increasingly prevalent as approaches for integrating home automation and property management become more advanced. Consumer-grade devices like Amazon Alexa are capable of integrating and controlling an entire property’s worth of smart devices, from lights, locks, and front door cameras to thermostats, HVAC units, and whole appliances. Prospective home buyers view these amenities as attractive elements of a property, and soon, smart home connectivity is likely to become a standard instead of a bonus.
The proliferation of smart devices in residential homes is currently being driven by ever-faster connectivity infrastructures. The widespread rollout of wireless 5G speeds means that homeowners can access the smart devices integrated into their properties quickly and easily, enabling high-speed data transfer that guarantees a fast response from those devices no matter where they are. Additionally, high-speed wireless internet will also enable real estate professionals to conduct remote business like virtual property tours as a matter of course.
For most real estate professionals, specializing in physical properties is enough. However, a brave new world of virtual properties - “real estate” that only exists in digital form in the so-called metaverse - is a new frontier that represents untold possibilities for growth, provided this growing trend continues building momentum into the new year.
Metaverse real estate might sound preposterous to some, but the writing is already on the pixelated walls. Facilitated by blockchain-based technologies and leveraged by the purchase and sale of non-fungible tokens (NFTs), ownership in plots of virtual land on dozens of different online platforms like Sandbox and Decentraland isn’t just possible - it’s lucrative. Proof positive is how one digital land parcel in Sandbox, located next to Snoop Dogg’s, sold for a massive $450,000.
We might not know exactly what the future has in store for real estate markets at home and abroad, but the odds are certainly in favor of faster, newer, and more interesting technologies emerging at a steady pace. Whether it’s new technologies based on artificial intelligence, lightning-fast telecommunications paving the way for more responsive smart home integrations, or revolutionary new approaches to financing by way of blockchain-based approaches, the coming year is likely to be an interesting one. There aren’t any indications that our technological innovation is going to slow down anytime soon, so this means that the time to prepare for the future of the real estate industry begins now, right here in 2023.