Unlocking digital opportunities in Real Estate
In today's world, digital technology is transforming every aspect of our lives. From the way we communicate to how we work and play, the impact of the digital revolution is undeniable. At the corporate level, digitization continues to be an unstoppable phenomenon and, according to a study by Statista, global spending on digital transformation is expected to reach US$3.9 trillion by 2027.
Despite a slower adoption compared to other sectors, one of the markets that has witnessed a significant change thanks to digitization is real estate. In recent years, tools based on virtual reality and augmented reality are already a must-have in digital real estate agencies such as Tiko. Through them, buyers can take virtual tours of homes in any city, as if it were their own Netflix, with an a la carte catalog without leaving their couch.
However, today technology is still one of the priorities of real estate companies. According to PWC's latest study "Emerging Trends in Real Estate 2024", AI, technology and digitalization are, after ESG, the most important trends that are marking the present and will mark the future of the real estate sector to an even greater extent.
In this sense, other technologies are bursting into the real estate market, such as blockchain for signing contracts, or Big Data, to help sellers and buyers have more information about the market. The same goes for Artificial Intelligence or geolocation, essential to improve customer service, and contribute to a more sustainable real estate industry, with the ability to develop and reinvent the smart cities of the future.
Seeing this panorama, we can affirm that technology is a power that allows us to create infinite digital opportunities in the real estate market. At Tiko, we use it to streamline the buying and selling of homes; and we have the most advanced tools in the sector so that clients and agents benefit equally. For example, we use Big Data and AI so that our clients have real-time market data and take better advantage of offers. On the other hand, we equip agents with the best CRM and marketing tools to sell a house in 40 days on average, to give two examples in our brokerage business.
But apart from our case, the sector is modernizing and new businesses are emerging that are reshaping the way users buy and sell. For example, applications such as Matterport or Houzz show how a house can be designed with technology. They show how the furniture will look in the future house. Likewise, they erect other businesses such as investing in parts of a house, depending on the legislation of each country. A good example of this is a company called Pacaso.
How to make the most of opportunities and minimize risks
Making the most of these digital opportunities is not simply a matter of adopting the latest technology. It also requires a change in mindset and an investment in digital skills. Real estate professionals must be willing to adapt and learn new tools and techniques to stay relevant in a constantly evolving environment. This may involve participating in technology-focused training and professional development programs or collaborating with technology experts to integrate digital solutions into their business practices.
In addition, it is crucial to recognize the challenges and risks associated with the digitization of real estate. Cybersecurity, for example, is a growing concern in an increasingly interconnected world. Industry professionals must implement robust security measures to protect their clients' sensitive data and safeguard the integrity of real estate transactions. In addition, over-adoption of technology without a proper understanding of its impact can lead to a poor customer experience or the loss of the human connection that remains critical in the home buying process.
In short, embracing technology, apart from being mandatory due to the competitive market in which we move, is a constant wheel of opportunities. However, it is not enough just to adopt it, we must strive to understand it and offer the best customer service, unlocking all the digital potential that proptech offers.