The real estate industry is shifting at a rapid pace.
Forward-thinking startups are facilitating dynamic changes, and automating the processes for all players including brokers, investors, average Joes, and property managers. Many would agree the seismic shift occurred in the wake of the renowned Zillow.
Indeed, it heralded the dawn of the new era, and a number of other leaders swiftly followed. Machine learning, predictive analytics, virtual reality, transparency, and social media have been integrated into the core of the real estate ecosystem. Consequently, the technology is not a luxury anymore, but the Holy Grail of the business competition.
Virtual reality is a game changer in many industries, and real estate is no exception. With such strong winds in the sails, startups like Matterport are making headways. The company offers 3D cameras capable of scanning the bedroom in under 45 minutes and producing photo-realistic rendering.
This helps immensely in terms of making virtual tours, albeit they require a virtual reality headset. The founder of the company states that more and more people are buying homes without ever setting foot in them. Naturally, remote buyers operating on a tight schedule are the first to flock to this incredible future frontier.
Collaboration and transparency have never been more important in the real estate industry. They are golden standards pivotal to the success of projects, and Honest Building, a startup founded in 2011, has fully recognized this. It represents a data-driven project management and procurement platform tailored to real estate managers, owners, and operators.
The utilization of this innovative hub results in faster competition and greater ability to keep expenses in check. It is well on its way to becoming a go-to source for commercial real estate construction and design pros.
Nowadays, one who aspires to become a real estate agent must know what he is up against. Namely, the technological surge is a double-edged sword. Startups like NoBroker effectively match sellers with buyers, cutting out the agents and brokers in the process.
The users are given an opportunity to obtain accurate, real-time information as well as the seller’s contact info. On top of that, the company offers assistance in creating rental agreements and dealing with the paperwork, as well as a dedicated smartphone app which allows people to find their dream home on the go.
Drones are seen as the next big thing in the real estate. They solve the fundamental problem we used to face: How to capture the full scale and magnificence of the property from the ground? Well, Phantom 4, an unmanned aerial vehicle (UAV) by the Shenzhen-based DJI gives a helping mechanical hand from above.
Mounted with a professional-grade camera, it is able to operate for 28 minutes on a single battery charge. Moreover, it is quite user-friendly and has a range of three miles. And although regulations concerning UAVs are still in its infancy, many real estate businesses have already jumped on this roaring bandwagon.
Crowdfunding has stepped into the spotlight. Angel investors of FundRise, a startup launched in 2012, are the paragons of this novelty concept of financing. In 2016, their funding has exceeded $40 million and this is just the beginning. Crowdfunding has touched $3.5 billion in the last year, and in 2017, it is expected to reach new heights.
It is clear that the playing field has been leveled and small investors are able to get the ball rolling without hefty money commitments and relying on venture capital. In the FundRise online marketplace, one can invest in projects for as little as $5,000. As a result, the costs are reduced and opportunities made ever numerous.
Innovation has traditionally lagged in real estate, but this is changing at a breakneck speed. We are already light years away from the obsolete pen and paper processes. The disruption has taken place and there is no stopping the locomotive of progress. We can find a needle in a haystack, stay on top of customer’s needs, and streamline daily operations.
There is no doubt that one must leverage cutting-edge technology in order to get ahead of the pack and embrace the future sooner rather than later. The aforementioned startups are riding the crest of the tech wave and the tide will lift only the boats of those who manage to keep up the pace.