Real estate tech trends in 2023 are changing the face of the industry with new and exciting opportunities for buyers, sellers, agents, and brokers alike. These trends shift the industry towards a digitized and automated system, with many built on emerging technology such as artificial intelligence (AI), cloud computing, and big data analytics.
Our team at Aloa is at the forefront of exploring tech in real estate, working with industry players to create streamlined experiences and better outcomes. With our gathered expertise, we'll share 15 key insights for real estate tech trends in 2023.
In this blog, we'll go through each trend to watch for, their impact on the industry, and how to leverage them in your real estate business for better outcomes. Afterward, you'll have an overview of the current landscape and be updated with the latest developments.
Let's start!
Top 15 Real Estate Trends For 2023
Several emerging tech trends shape the future of the real estate industry. These trends evolved the sector into a more data-driven, automated industry. Staying updated on tech trends is essential for creating an edge over competitors.
The real estate tech trends for 2023 include:
The Rise of Property Technology (PropTech)
A prominent real estate tech trend within the industry is the rise of property technology or PropTech. PropTech companies are focused on making the real estate industry more efficient and profitable through technological advancements.
This includes addressing the biggest challenges in the industry and providing access to data-driven analytics, utilizing artificial intelligence (AI) for predictive analysis, and building better user experiences with mobile apps and platforms.
Let's take a look at a few popular PropTech Trends impacting the industry today:
1. Virtual and Augmented Reality
With the help of AR and VR, real estate agents can provide virtual tours for prospective buyers, allowing them to explore a property's features without physically visiting it. AR and VR ProTech create “digital twins” of properties, allowing buyers to "walk through" a property digitally and get an immersive experience. Having the ability to leverage virtual tools to show properties is a big advantage for time-strapped buyers.
Additionally, using digital twins in real estate supports the industry's ability to stay afloat during unexpected events such as the COVID-19 Pandemic. Because of the shift towards virtual tours, the industry could continue operations despite a global health crisis.
2. Real Estate Management Software
PropTech, focused on real estate management software, is becoming increasingly popular, with the global property management software market to account for $720.25 billion by 2029. This technology helps streamline the entire process from listing a property to closing a sale, automating tasks and improving efficiency.
Real estate management platforms also provide insights into key metrics such as average time on the market, days on the market, and more. Also, with the help of AI-driven technology, agents can automate interactions with buyers, streamlining processes such as lead management, customer service, and marketing.
In addition to increasing efficiency, these automated systems provide a consistent experience for buyers that can increase their satisfaction with agents and brokers.
3. Real Estate CRM Software
Another real estate tech trend to watch out for is the rise of customer relationship management (CRM) software. CRM tools allow agents and brokers to store customer data, streamline client communication, track sales performance, and manage client relationships. Additionally, these systems can provide insights into buyer intent, such as which properties they've viewed or how often they've contacted an agent.
CRM software (such as Salesforce for Real Estate, Construction, and Facilities Management) in the real estate industry can significantly improve efficiency, providing agents with a more efficient way to manage clients and sales opportunities. This technology also makes it easier for agents and brokers to track customer interactions, understand their needs, and provide better service to buyers.
4. Fractional Property Investment
Fractional property investment has become popular in the real estate industry, providing valuable opportunities for startups and investors. With technology-driven innovations like big data, artificial intelligence, blockchain technology, and IoT sensors, fractional investment platforms enable greater transparency and accessibility than ever before.
Fractional investments allow investors to purchase a stake in a property without having to commit to the entire purchase price. This makes it easier for startups and small businesses to invest in properties that might otherwise be out of reach while providing an easy and efficient way for investors to diversify their portfolios.
Business Side Real Estate Tech Trends For 2023
In tandem with PropTech, real estate industry trends for 2023 will likely include a shift towards digital processes and investments in key technologies. This includes using cloud-based technology, automation, and mobile apps to streamline operations, increase productivity, and reduce costs.
On the business side, technology is increasingly being adopted by the real estate industry to strengthen and improve current systems. This includes predictive analytics and AI-driven algorithms to streamline processes.
Let's look into a few trends that are on the rise when it comes to using tech on the business side of the real estate industry:
5. Big Data and Predictive Analytics
Nearly every industry today applies big data and predictive analytics to improve decision-making and increase productivity. Real estate is no exception, as agents and brokers are leveraging data-driven insights to inform their decisions about what properties to list, how much to price them at, and when is the right time to list or sell.
Big data can also be used to gain insight into customer behavior, enabling agents and brokers to better understand what buyers are looking for and how they can best meet their needs. Staying up to date on this trend, the ability of professionals and businesses in the industry to understand buyers' needs and preferences and create targeted campaigns that will result in higher conversions.
6. Blockchain and Smart Contracts
Blockchain and smart contracts enable businesses and professionals to conduct real estate transactions faster and more securely. Blockchain technology enables buyers, sellers, agents, and brokers to enter into contracts in seconds by leveraging digital signatures for all parties involved. This decreases the required paperwork, increases data accuracy, and ensures everyone involved is on the same page throughout the process.
In addition, blockchain and smart contract technology can reduce the risk of fraud by ensuring a secure, immutable record of all transactions. This means that agents and brokers won't have to worry about errors or inconsistencies in the paperwork or data associated with a transaction, as everything is recorded on an unalterable ledger.
7. Lead Generation and Engagement Automation in Real Estate
Lead generation and engagement automation will be another real estate trend in 2023. This technology allows agents and brokers to automatically generate leads, send automated emails and texts, and track customer engagement.
Automation also helps professionals target customers at the right time by segmenting them based on their needs or preferences. In turn, industry professionals can create hyper-personalized messages in real estate marketing and strategically plan direct digital engagement.
8. Robotic Process Automation (RPA)
Real estate firms are leveraging RPA to automate mundane processes in the industry, such as document handling, data entry, customer onboarding, and more. This technology can help real estate companies reduce costs while processing tasks faster and more accurately.
RPA technology can also manage customer inquiries, schedule appointments, manage client databases, and automate marketing processes. This can help real estate firms reduce time spent on administrative tasks while freeing up resources to focus on more profitable activities.
Client Engagement Real Estate Trends For 2023
Client engagement is a crucial component in the real estate industry. As a customer-centric industry, professionals and businesses must implement innovative technologies to ensure customers are engaged throughout the sales process.
Platforms such as mobile applications and AI-driven processes in the real estate industry have become essential for agents and brokers to stay up-to-date on the latest trends in client engagement technology.
Here are a few trends on the client engagement side of real estate to look out for:
9. Engaging and Informative Online Platforms
Engaging and informative online platforms such as virtual reality (VR) and augmented reality (AR) have become popular tools for buyers to explore properties before ever stepping out of their homes. These technologies enable agents to provide buyers with a more immersive view of the property, reducing potential barriers to relocating or purchasing a home. In addition, incorporating a moving cost calculator into these technologies allows agents to offer buyers a comprehensive perspective of the property.
Online marketing channels like video tours are becoming increasingly important in the real estate industry. This technology allows agents to provide virtual property tours, helping them showcase the features and amenities more engagingly and interactively.
Additionally, social media has become a powerful tool for real estate professionals to reach potential customers quickly and easily. Agents can create customer relationships, build trust, and increase engagement by leveraging social media platforms.
10. Artificial Intelligence and Machine Learning
Automation, artificial intelligence (AI), and machine learning (MA) have become crucial for agents and brokers to stay competitive. AI technology can be used in various ways, from streamlining paperwork to automating marketing processes. AI-driven algorithms can analyze customer data and provide valuable insights into the market. This data can give real estate firms an edge over their competitors by helping them understand what buyers are looking for and how to best serve their needs.
Real estate professionals can also leverage MA to generate personalized customer messages that increase engagement and increase conversions. In addition, AI-powered chatbots can provide buyers with quick answers to common questions around the clock, ensuring a positive customer experience.
11. Client-Facing Mobile Apps
Mobile apps have become essential for customer engagement in the real estate industry. Client-facing mobile apps enable buyers to search through listings, view properties on a map, compare prices, and more from their smartphones.
Establishing mobile applications enables agents to provide potential customers with a better view of the property they are interested in and more comprehensive information about relocation options. Additionally, agents can use mobile apps to keep in touch with customers throughout the entire sales process and provide them with updated information.
Since most real estate clients today are digital natives, having a mobile app is key for agents and brokers to stay competitive. Overall, having a mobile app that streamlines processes in the real estate industry has the potential to save costs for professionals and drive sales at a faster rate.
12. Digital Transaction Management in Real Estate Transactions
One of the most challenging pain points in real estate for clients is managing the paperwork associated with a transaction. Fortunately, digital transaction management (DTM) technology is helping to streamline processes in real estate transactions.
DTM is a system that enables customers to securely manage and store documents online while automating tasks such as e-signatures, document sharing, and tracking of deadlines. This technology can help agents and brokers save time while ensuring their clients are always in the loop.
The added benefit of DTM is that it enables agents to manage multiple transactions in one place, reducing the potential for errors while staying organized. Also, DTM platforms come equipped with analytics features that can help brokers gain insights into the transaction process. With that, more room exists to optimize operations and drive better results.
Housing Trends For The Real Estate Industry
Because technology is starting to revolutionize the real estate industry, housing trends will impact what people expect in terms of property and home design. These housing trends are expected to take on digitized and sustainable aspects to make living in a home more efficient, modern, and comfortable.
Here are a few trends that we can expect to see in the real estate industry:
13. Internet of Things (IoT) and Smart Homes
The smart home trend is becoming increasingly popular as more people want to control their homes from mobile devices and access data on who enters or leaves the premises. This kind of Internet of Things (IoT) technology can help improve security for both buyers and sellers while also making life easier for homeowners.
In addition, green building—the practice of constructing buildings using materials and processes to reduce environmental harm—will continue to be a trend in the real estate industry. Green building technologies such as solar power, water-efficient fixtures, and energy-saving techniques are becoming popular among homeowners and businesses to reduce their environmental impact.
14. Analytics for Property Valuation
Property valuation is a critical factor in the real estate industry, and making sure that buyers and sellers are getting a fair deal. Analytics can help agents and brokers accurately estimate properties' value quickly and efficiently.
AI-driven tools like predictive analytics can help agents analyze buyer trends, property prices, market trends, and other important data points to give them an estimate of a property's value. Predictive analytics can also provide insights into the availability of properties in specific areas, which can be useful for buyers and sellers.
Using AI-assisted valuation processes, the housing trends can be better accounted for, as the algorithms used will be able to take into account data points such as location, square footage, and amenities when calculating a property's value. This ensures that buyers and sellers get an accurate estimate of value in less time. In turn, the industry can potentially offer better deals and make the buying process more efficient.
15. Urban Planning and Smart Cities
Developing smart cities through PropTech is on the rise. Smart cities offer citizens access to services that leverage data-driven insights tailored to their needs. Additionally, incorporating PropTech into urban planning enables city planners to identify opportunities, reduce development costs, and create more sustainable cities.
Smart cities use technology to create energy-efficient infrastructures, measure air pollution levels, and optimize transportation systems. With AI and IoT, citizens can access real-time information about various topics, such as parking availability or traffic patterns. All of this data can be used to make informed urban planning and development decisions.
Types Of Tech In Real Estate To Watch Out For
Technology trends are changing the face of the real estate industry, providing high-quality services that create transparency between landlords, tenants, property managers, and homeowners alike.
Today, PropTech trends open up new possibilities for real estate professionals. These new technologies are paving the way for a more profitable future. Here are some of the technologies to watch out for in the near future:
Online Listings With AR and VR
Online listings are a must-have for any real estate professional, as they provide a platform to showcase listings in an organized and user-friendly manner. Sites like Zillow and Redfin are making finding potential buyers and sellers easier while providing valuable analytics that can assist in pricing decisions.
Additional services like AI-driven recommendations, such as those provided by Reonomy, also give agents an advantage when locating the perfect listings. On the buyer side, sites like BuildOut are helping people find their ideal property through technology like VR and AR tours.
As technology evolves, virtual reality tools and augmented reality are becoming increasingly popular in real estate. This allows potential buyers to explore properties from a distance, helping them get a better feel for the area without physically visiting it.
Combining streamlined online listing processes with customer-centric services moves the real estate industry towards a more seamless and efficient future. Smart contracts, blockchain technology, and chatbots are also beneficial in the real estate sector, making it easier to keep track of paperwork while providing customers with a quick response time for any inquiries.
Mobile Apps
Mobile apps are another essential PropTech trend on the rise. Applications like OpenDoor make it easier for buyers to find potential properties in their preferred area without traveling. These apps also provide useful features such as a direct chat with agents or automated referrals to help customers find the best deals.
The prevalence of mobile devices is transforming the real estate industry, giving tenants and homeowners more control over their property. Applications like WorxWell by RxR are making it easier for landlords to maintain communication with their tenants.
Additionally, data-driven analytics and comprehensive dashboards allow property managers to optimize their spaces to make them more convenient and comfortable for people to use.
Ultimately these elements raise the market value of a property, boosting the return on investment for both landlords and tenants. By adopting these tech-driven solutions, agents and property owners can make their processes more efficient while providing customers with the best possible services.
PropTech Software (Analytics and CRM)
PropTech software solutions for brokers, agents, and agencies include tools to simplify and streamline operations, analyze data, market properties, and manage finances. These software solutions are designed to save time for agents and brokers and enable them to stay competitive in an increasingly digital world.
Platforms like Reonomy provide users with comprehensive property intelligence that can be used to assess potential risks and gain valuable insights regarding investments. While real estate software tools like those provided by BuildOut provide users with an efficient way to create marketing materials and streamline their workflow.
Because the real estate industry is ever-evolving, PropTech software solutions are constantly updated to provide users with the best possible experience. With these software tools, agents and brokers can use these innovative tools to stay ahead of their competition and offer more value to their customers.
Online Investing
Investing in the real estate industry has never been easier due to technological advancements. One such advancement that has gained popularity lately is online investing. It allows individuals to invest in properties conveniently, transparently, and with greater control over their investment decisions. Online platforms allow investors to browse different properties, compare prices, and invest in just a few clicks.
With their Cash Programs, platforms like Keller Offers remove the hassle of getting a loan for the property, allowing for an easier and more efficient way to invest in real estate. Additionally, their automated process makes it possible for investors to get the best deals on the market.
Online investing also enables users to stay connected with other stakeholders involved in the transaction, like agents, lenders, and title companies. Stimulating investments within the industry strengthens investors' buying and selling power while also creating more opportunities for growth and sustainability.
AI-Driven Solutions
AI-driven solutions are not exclusive to the real estate industry, and by incorporating them, the industry can benefit from an increase in efficiency while also saving costs. AI-driven solutions automate tedious processes such as form filling and provide insights that would otherwise not be available to real estate professionals.
Platforms like Zillow and KeyWay use AI to predict the prices of properties and optimize their listing process, which helps agents save time when posting listings. AI-powered data is also becoming increasingly popular in the industry.
Data analytics uses AI to track customer behavior and analyze market trends. This allows them to better understand the needs of their customers and make more informed decisions regarding pricing and marketing strategies.
Key Takeaway
The real estate tech trends in 2023 are all about convenience and efficiency. PropTech is changing how people do business in the real estate industry, from AI-driven solutions to online investing. By embracing these technologies, agents, and brokers can ensure they remain competitive and stay ahead of the game.
Real estate professionals should take full advantage of technology to offer a better customer experience while making their operations more efficient. Applying technology to real estate leverages your ability to remain competitive and increase your return on investment.
For more insight into how tech in real estate can help, reach out to [email protected]. Our Account Managers are here to help you explore technology-driven solutions for your real estate business.
