Top 10 Real Estate Technology Trends to Watch in 2024

 

 

When you think of real estate, cutting-edge tech might not be the first thing that comes to mind. But real estate technology companies have been hard at work changing the way we live in, work in, and manage buildings. You might be surprised to learn how much property technology can help you, whether you own, manage, or develop buildings.

In this post, you’ll learn what real estate technology is, why it matters, and why you should adopt it. Finally, you’ll read about the top ten commercial real estate technology trends pushing the industry forward and discover why they’re useful.

This post covers:

• 10 Real estate technology trends that you can adopt now
• What is real estate technology?
• Why is real estate technology important?

 

Top 10 real estate technology trends that you can adopt now

Are you wondering about specific real estate technology trends that you can adopt to join the next generation of real estate innovators? Here are a few of them.

The top 10 real estate technology trends to watch in 2024 are:

1. Internet of Things (IoT)
2. Blockchain
3. Virtual reality
4. CRM software
5. Mobile access control
6. Artificial Intelligence (AI)
7. Real estate marketing automation
8. Big data
9. Digital twins
10. Fractional ownership

 

 

1. Internet of Things (IoT)

IoT in real estate is an exciting development that’s already widely used. An IoT device has a tiny sensor communicating and exchanging data with other devices. This rapid data exchange has many uses.

From a keypad that’s connected to a building-wide access control system to
underground sensors that can direct traffic for entire cities, the Internet of Things is already reshaping the way real estate works.

Today, IoT allows property owners and residents to turn their smartphones into mobile video intercom systems. That means no matter where you are, you can see who is trying to get into the building. Plus, it’s easier and more convenient to welcome visitors, and controlling who has access to the building is safer. Also, it allows property owners and managers to easily track who’s entering the property to ensure tenants’ safety and security.

 

 

2. Blockchain

Cryptocurrencies like Bitcoin and the blockchains that power them are taking the world by storm. But blockchains are good for more than just cryptocurrency. Mainstream adoption of next-generation data storage technology, like the blockchain, will make access to information easy and free.

A blockchain is a way to store data that nobody can change after it’s been uploaded. Countries and corporations already use blockchains to store voting data and medical records and track food processing. So, real estate can make significant use of the blockchain, too.

For example, you can store a record on the blockchain, like a rent payment or a contract. And you have peace of mind that your records are immutable and always accessible.

 

3. Virtual reality

Virtual reality offers a new way to experience places and things as if you were there. So, how does VR apply to real estate?

With the help of a headset, residents can tour your property even if they’re halfway around the world. As a result, you can expand your potential base of clients or tenants worldwide with the help of virtual reality.

A closely related trend is augmented reality, which overlays computer-generated imagery onto the physical world. This has a lot of utility for interior designers or residents who want to see what a piece of furniture will look like before moving in. Plus, installers can use augmented reality to show their clients what new hardware might look like.

 

 

4. CRM software

CRM software, or customer relationship management software, is a tool for managing businesses and managing conversations with many people at once.

As you can imagine, thousands of real estate professionals depend on CRM software to ensure they don’t lose track of their prospects or customers.

Essentially, CRM software is a big database that you can use to collect and search for all the information you’d ever need about your clients. With CRM software at your fingertips, you can give each customer special attention without wading through countless emails or paper records.

What’s more, many CRM platforms include AI analysis tools. So, you spend less time managing customer data and more time attending to other matters.

 

5. Mobile access control

The best real estate technology complements advances in other fields and facilitates digital transformation in real estate. For example, the ubiquity of smartphones in modern life unlocks new opportunities for real estate professionals and tenants alike.

Today, people use their phones to order food or make credit card payments. Installing an intercom or access control system that residents can unlock with a smartphone app can provide convenience and security simultaneously.

Mobile-based access is convenient because your tenants can open their front door from anywhere. For example, the ButterflyMX app offers an intuitive swipe-to-open feature that’s opened millions of doors. So, say goodbye to the days when residents missed packages because they were not home!

And that’s just one feature that smartphone-based property access can offer residents or staff. The best mobile systems let residents issue multi-use digital access codes or one-time Delivery Passes, making access simpler for every type of guest. Meanwhile, staff can easily check an audit trail of all door releases to maintain security on your property.

Smartphone-powered access experiences attract modern residents. And now that younger generations raised on the internet are entering the rental market, you can be sure it’s a solid investment.

 

 

6. Artificial intelligence (AI)

Artificial intelligence analyzes data and makes suggestions based on the trends that it’s noticed. And when you’re dealing with many customers at high volumes, AI uses all that data to make suggestions and inform your decision-making. As a result, AI increases efficiency and cost savings, all while improving tenant user experiences.

What’s more, smart building systems that are powered by AI optimize energy consumption, automate maintenance schedules, and enhance security through predictive analytics.

Additionally, AI-powered virtual assistants and chatbots streamline communication between real estate professionals and tenants. As a result, AI offers quick responses to inquiries and addresses issues faster than ever.

 

7. Real estate marketing automation

Adopting real estate marketing automation tools drives efficiency, optimizes workflows, and personalizes resident experiences.

Here are a few other ways real estate marketing automation transforms the leasing process:

• Optimize resident acquisition and onboarding. Marketing automation streamlines the leasing process by optimizing tenant acquisition for property managers. What’s more, automation technology attracts and engages the right prospects by employing automated email campaigns and targeted social media advertising.
• Automate lead nurturing. Automated lead nurturing and virtual property tours empower property owners and managers to showcase their spaces’ unique features and benefits to potential tenants.
• Foster long-term relationships. Marketing automation facilitates better client relationships, allowing for personalized interactions and timely communication. So, this personalized approach enhances the overall client experience and increases the likelihood of securing long-term tenant relationships.

 

8. Big data

The growing trend towards big data has helped properties of all types gain valuable insights into tenant behaviors, preferences, and usage patterns.

Here’s how big data increases operational efficiency in real estate:

• Data-driven decision-making. Make data-driven decisions to improve amenities, optimize maintenance schedules, and enhance overall satisfaction.
• Utilize predictive analytics. Predictive analytics can anticipate and address issues before they escalate, improving building performance and reducing operational costs.
• Optimize spaces. Big data analytics empowers property managers and owners to optimize living spaces, enhance workplace design, and create more efficient and collaborative environments.

 

9. Digital twins

Digital twin technology offers a virtual model of a physical asset or building. It generates these models by integrating data from various sources, such as sensors, IoT devices, and building management systems.

With this in mind, real estate professionals and developers use these replicas to create more intelligent, responsive environments.

Here are a few ways digital twins enhance real estate:

• Proactively monitor energy consumption and usage. Empower property managers to monitor and analyze real-time data related to energy consumption, occupancy patterns, and equipment performance.
• Gain insights into tenant behavior. Enhance amenities and services based on usage patterns by offering insights into tenant behavior and preferences.
• Create smart and adaptable spaces. Savvy property owners and managers utilize this technology to monitor and analyze occupancy, air quality, and temperature data.

 

10. Fractional ownership

Fractional ownership offers an innovative approach to real estate investment. It allows multiple investors to collectively own a portion of a property, dividing the costs and benefits among several investors. This democratizing real estate investment approach empowers individuals to access high-value properties with lower capital risks.

Furthermore, real estate technology platforms facilitate the seamless administration of fractional ownership by offering transparent transactions, streamlined management, and automated processes for multiple investors.

Furthermore, fractional ownership makes real estate markets more accessible to a broader range of investors while also leveraging technology to simplify and democratize property investment.

 

What is real estate technology?

Real estate technology, or proptech, is a collection of software platforms and hardware innovations that simplify how commercial and residential real estate professionals buy, sell, market, manage, and use buildings.

Until recently, real estate depended primarily on analog data storage and building management methods. Think paper records or a doorman who’d be in charge of managing package deliveries.

Nowadays, with the rise of inventions like smartphones and the internet, the future of real estate technology looks a lot more efficient. Instead of spending hours searching different filing cabinets for a paper record, imagine saving a lot of time and energy by just pulling up whatever you need online!

 

What is the term for real estate technology?

Proptech is a portmanteau of “property” and “technology.” It broadly refers to technology designed to improve real estate industry activities.

 

What kind of technology is used in real estate?

Many technological advances from other industries are finding new lives in real estate.

Some technology used in real estate includes:

• Robotics in property construction
• Artificial intelligence in real estate chatbots and data analytics
• Blockchain to store data
• Biometric and facial recognition sensors to manage access
• 5G WiFi that supports internet-connected devices and sensors across an entire property

 

How is technology changing the real estate industry?

Technology is changing the real estate industry like it’s changing every industry. It’s reducing the time professionals spend on manual tasks while opening up digital avenues of productivity and interconnectivity.

Real estate is in a special position to benefit from technology. Before a tenant can move into a building, consider all of the time, work, and agreements multiple parties must make. We’re talking development, construction, and even advertising — all before a property manager creates their own paper trails over the lifetime of a tenant’s stay in the building.

Historically, all of this was handled with painstaking paper transactions. Now, technologies like email communications and the Internet are reducing the delays associated with face-to-face meetings and paperwork.

But that’s not all. New technologies now tackle issues specific to real estate, like property access control, maintenance management, and lease administration.

 

Explore the top five technology trends to watch:

 

Why is real estate technology important?

Real estate technology is important because it consistently saves real estate professionals time, money, and resources. And by reinvesting those resources into serving existing customers and finding new ones, industry professionals who adopt technology
are leaving their analog competitors in the dust.

No matter what your role is in real estate, there’s a way for technology to simplify processes and make your job easier.

Here’s how technology and real estate impact:

• Property managers
• Security and access control installers
• Real estate marketers

 

Property managers

Managing a property means keeping track of a dozen tiny things each day. Some important responsibilities range from managing deliveries to handing out keys, but you know something else can always pop up unexpectedly.

Each of these tasks is a job in and of itself, whether your building hosts a few tenants or thousands.

But real estate technology can help you streamline everything. And when tenants notice that those technologies result in smoother operations and quicker response times, they’ll be happier with your building and more likely to renew their leases.

Property managers use real estate technology to:

• Control access for tenants and guests
• Manage package deliveries
• Manage handing out and collecting credentials, like keys or fobs
• Coordinate move-in and move-out dates
• Streamline the leasing process
• Acquire data that help run the property more efficiently

 

Security and access control installers

Today, security and access control system installers enjoy the benefits of wireless technology. Installing wired hardware, like old-school intercoms that require building-wide wiring, was a long and challenging process. And there’s always the risk of that wire degrading. As a result, you’d need to tear down walls and ceilings only to rebuild them all over again.

Instead, smart technology installers can recommend hardware that uses Bluetooth, WiFi, or a cellular network. This lets you keep walls intact, cut down on the time you spend installing systems, and keep rates reasonable. Faster, cheaper installations make for happy clients!

 

Real estate marketers

No matter their official job title, lots of real estate professionals must also market themselves or their properties. Whether you’re an installer trying to get more clients or a property manager filling vacant units, real estate technology offers you a lot of tools that can help you get your name out there.

For example, you have a lot of leeway to create individualized customer experiences. If you’re an installer, you might set up a website where customers can check out reviews and easily hire you. Or, property managers can invest in virtual staging software to present vacant units in the best light possible without spending thousands actually staging vacancies. Staged units have been shown to result in higher rental rates, so it’s a worthwhile marketing strategy.

While drumming up business is great, real estate professionals can’t spend all of their time marketing — they’ve got to attend to the particulars of their jobs. That’s another reason why technology in real estate marketing is so helpful. With the help of marketing-specific software like customer management platforms, anybody can generate more business while spending less time chasing down prospects.