Abstract

Real estate is said to be one of the safest investments to carry on. But the recent global depression after the pandemic has shuffled the industry badly. With an abundance of buyers and a myriad of sellers, real estate has also become a complex business to manage. Now, when more and more industries are shifting toward digital transformation, real estate is following the slow and steady approach in the larger part of the world. Technologies such as “PropTech” have a whole sky of potential to revolutionize the industry and solve its problems.

Major Real Estate Problems in 2021

“All that glitters is not gold”, this maxim stands firm when compared to the real estate business. Real estate is perceived as one of the most profit generating businesses, but behind the curtain, there’s a bounty of problems that keep coming in no time. Look at some!

In spite of positive headwinds to the industry now, the condition is still alarming. The economic condition after the pandemic is not hidden from anybody. Savings of the general public is all time low, resulting in low investment rates, obviously. Public and private indebtedness is showing the symptoms to downfall again after the great 2008 depression.

People are heading toward buying affordable houses without spending too much of their money. This has forced realtors to find ways to utilize the available cost, effectively and save more in order to fulfil this demand. Real estate “business management” is also facing a lot of hurdles and problems.

The too much documentation being recorded and maintained by the traditional methods are no longer viable. Environmental social grievance has also become a common concern of every nation. Hence, realtors are being constrained to provide environmental solutions too.

All these things are taking too much realtors’ money and lowering their profits year by year. Low customer conversion, Low rental yields, weak rental contract implementation, trust-deficit between owners and tenants and ease of finding properties are some of the biggest problems of the Real estate industry. Growing online competition is also putting pressure on real estate professionals who are not too tech-savvy.

Major Real Estate Problems in 2021

All these things are taking too much realtors money and lowering their profits year by year. Low customer conversion, Low rental yields, weak rental contract implementation, trust-deficit between owners and tenants and ease of finding properties are some of the biggest problems of the real estate industry. Growing online competition is also putting pressure on real estate professionals who are not too tech savvy.

The Never Ending Problems of Real Estate:

Unrealistic buyers/tenants
Increasing cost
Politics and political uncertainty

Focus on space utilization
Building consumer confidence in service
No adapting to technology trends

Flood of online listings
Keeping up with the trends
Profit turnaround time and so on

The List can easily take pages after pages without any doubt. So, what does the future hold for the real estate sector? The only visible solution, called technology, is striking at the door. But the huge concern is, will technology help real estate or make it more competitive than ever?

Solutions - The Technological Wave is Real

Adapting to the change is the best approach, but when the pace of change accelerates, then even the wisest investors may fail. The new decade is bringing unique challenges and opportunities to the real estate industry. But as the clock is ticking, caution is coming near to the real estate industry. Hence, realtors need to prepare their business to adapt this change.

The only hope generating talks among realtors is technology. Technology is playing a vital role in reviving the real estate business. Not just this, the impact and outcomes are so big, that even more and more realtors are looking to adopt the technology to save their pocket and fulfill the customer demands.

Real Estate Tech Funding History

Technology has turned out to be a major turning point for most investors to pour more time and money into the real estate business. The inclined curve simply shows, the technology trends started early, with no near sign of stopping. Real estate is rapidly heading toward the digital transformation, this is the reason why financing in real estate technology has been surge exponentially. This finance is being used for the rejuvenation and revitalization of the industry to achieve the lost strength and pace. However, the pandemic showed some adverse effects, but funding is likely to grow more.

Real Estate “PropTech” Funding trends

The opportunity to modernize the real estate industry is almost a decade old but slowly adopting the frantic pace. Real estate technology Referred to as “PropTech” is working like a magnet to get the funding. The property market is expected to see a big surge due to PropTech. PropTech significantly stands with the term “Property” and “technology”. In today’s time when technology has taken over almost every industry, Real estate looks feeble to survive without.

PropTech is Resuscitating Real Estate

The use of Augmented/virtual reality can make the sluggish buying and renting process faster. The virtual reality walkthrough has made the home viewing process easier for tenants and buyers.
Online availability and 24×7 Support can reduce the trust deficit between buyer and seller.
PropTech can drastically change property management and make it a pleasing experience to manage. Realtors can now easily lower their site viewing cost, tenant finding cost, branding cost, and above all, they can target a whole new bunch of Home seekers.
The too much documentation issue can be countered easily with the help of big data in Real estate. Technologies such as big data will help real estate investors to take appropriate decisions according to market fluctuation and trends.
The real estate market has seen an upswing in demand by the use of Blockchain. The hefty payments done in the real estate business can be implemented without any worry with peer-to-peer, secure systems.
Automation and Machine learning is uplifting the real estate business with better relationship management and real time updates.
In 2021, Mobile and web apps are gaining huge popularity to check property listings. This is the reason why the remaining 50% of world realtors are actively looking for Real Estate App Development. Must check our Property Rental Automation and Estate Lookout Case Study.
Realtors are getting more conversions by harnessing the 50.8% of the total world population who are actively surfing the internet.
Better Market Predictions have facilitated the realtor to sell premium properties at the right time and increase the investment yield.
Doing a contract between properly buyer and seller has become an easy pie with the instant token system.

PropTech is changing the lives of relators with a countless number of advantages, ease, and convenience.

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Conclusion

Talking the whole, tech is accelerating real estate like never before. Thanks to PropTech that has begun momentum to bring innovation in the reluctant real estate Industry. Of course, there’s a lot of areas to improve, which surely will take some time. But the future of real estate looks brighter with the adoption of technology. We might continue to see some hurdles in adopting the change but the outcome is really fruitful and worthy.