Real Estate Technology Trends That Spark Real Estate Innovation

February 14, 2024
14 min

The real estate industry used to be old-fashioned and devoid of technology and software integration. Now, these times are gone. Disruptive real estate technology has been actively adopting modern innovations that revolutionize the industry.

Some notable real estate technology trends include Artificial Intelligence (AI), Big Data, Virtual Reality (VR), Internet of Things (IoT), automated property management and maintenance, and many others. They introduce a completely new approach to real estate case management.

These real estate technology trends bring an array of opportunities for real estate agents and customers alike. Practical real estate technology and innovation applications include

  • AI, used for automating lease abstraction, property valuation, customer support chatbots, property search, and property management;
  • IoT for enhancing home living with smart homes;
  • VR for immersive experiences with virtual 3D property tours;
  • Big Data and AI for predictive analytics, automated property valuation models, and property investment.

These advancements are not only improving efficiency but also shaping the future of real estate technology. And those who don’t catch up with incredibly dynamic real estate innovations, unfortunately, risk being left behind.

As a seasoned real estate tech expert with a 16-year-long history in the industry, we have been at the forefront of real estate innovation and are here to share our predictions on the real estate technology trends that are going to stay with us in the years ahead.

Real Estate Industry Overview & Predictions

image showing statistical information on future real estate trends

Real estate today

With almost USD 9 trillion in global assets, commercial real estate is the largest industry in the world. Add to that the residential real estate market, which has much greater value, and you are talking about the world’s biggest asset class that over the years created much wealth and investment opportunities. In 2018, investment in real estate peaked at €311 billion, according to CBRE.

The value of the real estate market in years to come

According to Expert Market Research, the global real estate market size is expected to grow at a CAGR of 5.00% between 2024 and 2032, owing to the expanding population, and the growing demand for high-quality housing and infrastructure (source). In the US alone, real estate takes up around 13% of the country’s annual GDP and is the fastest-growing sector of the economy (source).

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What is real estate technology?

Real estate technology refers to proptech software, tools, apps, and other kinds of technology for real estate agents, customers, architects, and property managers that improve efficiency and facilitate real estate activities, from buying, selling, renting (Rightmove & Airbnb), and managing to marketing and investing (OpenSignal).

Real estate and technology

Real estate processes can highly benefit from technological advancements application. Real estate and technology became indivisible, bringing innovation in real estate to a new level. Virtual reality, AI-powered real estate technology tools, and Internet of Things are real estate innovations that improve the efficiency and accessibility of real estate transactions, streamline operations, and automate manual and repetitive work.

AI innovation in real estate reduces manual workload, optimizes property analysis, automates routine tasks, such as document processing, appointment scheduling, and data management, which saves time and resources for employees.

 

Real Estate Technology Trends

The digital revolution will continue to reshape the real estate landscape in 2024. Along with the widespread adoption of real estate software, some of the best real estate technology trends in 2024 will include AI, Machine Learning, Cloud Computing, Big Data Analytics, Virtual and Augmented Reality, Smart Buildings, IoT, Green Building Technology, Predictive Analytics, and many others.

Artificial Intelligence (AI) and Chatbots

Probably the biggest real estate technology and innovation breakthrough is Artificial Intelligence, or AI, which has been on the rise since 2022 and will stay here for long. This real estate tech trend has reached the industry quite recently, but already became essential in real estate operations.

The trend of AI in real estate will further evolve with the recent introduction of the GPT Store, allowing users to choose ready-made chatbots from the constantly expanding GPT collection.

With the emergence of a whole new collection of affordable AI-powered real estate assistance, many more repetitive and manual tasks will be optimized, automated, and replaced by technology, saving time and effort of real estate professionals.

Some of the most popular AI applications in real estate are:

  • AI lease abstraction/ contract summary AI;
  • Automated property valuation;
  • Chatbots for high-quality 24/7 customer support;
  • Virtual assistants with the ability to schedule appointments, summarize and plan calls, and create and manage tasks;
  • Tools for property descriptions and summaries generation for listings;
  • Analytics for market trends tracking and data analysis;
  • Real estate investment and portfolio management platforms;
  • AI natural language search for finding relevant properties;
  • Automated property management and maintenance platforms.
Example of AI Chatbot for Property Search by Ascendix

Example of AI Property Search Chatbot by Ascendix

Cloud Computing and Storage

According to Deloitte’s research, migrating to the cloud is one of the top real estate technology trends implemented by 36% of real estate respondents across the globe.

The whole idea behind the cloud is to let companies store their data, say client or property details, online without having to manage onsite data centers or organize paperwork. This means you no longer need to worry about data security and accessibility, system maintenance, and room for document storage.

For real estate agents / dealers / brokers migration to the cloud mainly comes in the form of subscription-based applications like property management platforms, transportation management software, or simply cloud data storage.

 

You might be also interested in: AI Tools for Commercial Real Estate: A Big Overview.

 

And although cloud computing has been around for at least a decade, widely adopted in other industries (just think of fintech), it took it a while to find its way into real estate, which so far has been known as an offline first industry. Among the most important benefits of cloud computing for real estate are:

  • Flexibility

As all data resides in the cloud, real estate professionals can access information from anywhere. That makes them more productive, collaborative, and satisfied in their jobs.

  • Scalability

Depending on how fast your real estate business grows, cloud-based platforms can scale up or down respectively. You don’t need to set up anything from scratch – just choose a more suitable subscription plan.

  • Security

Since all the data resides in the cloud away from your often unsecured network at home or work or worse than that on paper files on your desk, you can rest assured that no system breaches will happen.

  • Paperless

Operation in the cloud enables real estate firms to cut down the use of paper, thus ensuring more control over documents, better data security, and instant backups.

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Big Data

If just a decade ago, real estate firms made decisions based on professional experience and records in Excel, today data-related real estate tech trends have changed significantly. Artificial intelligence complemented by big data makes it possible to paint more vivid pictures of future risks and opportunities in the real estate market, leading to a higher quality of analysis and predictions.

By harnessing big data, like extensive datasets from property listings, market trends, and demographic information, real estate tech tools can give a comprehensive understanding of the market landscape.

Big data technology is becoming even more powerful when combined with artificial intelligence. The applications of big data integrated with AI in real estate include multiple examples:

  • Market prediction for informed investment decisions. AI can analyze extensive datasets, such as historical information about real estate sales in the area, economic factors, demographic shifts, social media sentiment, and market trends. Using this data, AI predicts future property values, market fluctuations, and rental patterns specific to locations and property categories. This way investors can make informed choices regarding property transactions, therefore optimizing portfolios and maximizing returns.
  • Enhanced up-to-date property valuation. AI analyzes data related to individual properties, considering property size, condition, renovations, and nearby developments, and additional factors like neighborhood characteristics, crime rates, school ratings, and proximity to desirable amenities. This allows for a more detailed and realistic assessment of a property’s value.
  • Automated improved property management. Utilizing big data analytics, AI can monitor maintenance requirements by analyzing data from smart appliances, security systems, and utility meters, and forecast potential equipment failures and issues before they escalate into expensive problems.

Virtual Reality (VR)

Among other real estate innovations, Virtual Reality (VR) technology plays a transformative role by providing immersive and interactive experiences for buyers, sellers, and agents. This real estate technology trend allows potential buyers to take virtual tours of properties from their homes, experiencing the look and feel of houses without visiting them.

Real estate developers utilize VR to showcase architectural plans and designs, helping clients visualize projects before they are constructed. Agents use such real estate technology to conduct virtual property viewings, enabling clients to explore every detail of a home before renting or buying it.

Moreover, VR can be employed during the planning and design phase of construction projects, helping the professionals involved to collaborate and make more informed decisions. This real estate technology trend is unique, as it both enhances the overall property viewing experience and contributes to more tangible understanding and vision of the property.

 

Smart Buildings / IoT

Modern people are living a fast-paced life, so our houses and apartments should adapt. The dynamic expectations of tenants and buyers are met with always-connected IoT homes of mart mirrors, robot vacuum cleaners, and wireless kitchen appliances interacting with each other and quickly reacting to people’s needs.

The concept of smart buildings powered by the Internet of Things appeared among real estate technology trends back in the early 2000s. However, today the power of smart homes is much more widespread and affordable, so it has become a more viable real estate technology for consumers.

There are three defining features of this real estate tech trend:

  • Smart amenities like automatic lights that turn on 1 hour after sunset and turn off 1 hour before sunrise.
  • Connectivity. All smart amenities and gadgets communicate with each other through Wi-Fi, smart sensors, and intelligent access controls.
  • Remote performance access. IoT sensors (smoke, CO2, motion, leak, gas, etc.) and smart meters collect the data about consumption remotely and send reports to the tenant / owner / property manager’s laptop or phone, meaning the real estate tech control is literally on their fingertips.

Green Building Technology

With the increased demand for digital systems to track and improve energy use, manufacturers and installers increasingly adopt efficiency-enhancing building materials and systems. One way to do this is to install low-carbon heating and cooling systems, such as heat pumps and energy-efficient A/C.

If wisely paired with the above-mentioned real estate technology trend of smart homes, green buildings can significantly decrease the carbon footprint of construction projects.

And the first enthusiasts who embrace green engineering and performance-management tools that support retrofitting are likely to see big gains.

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Real Estate Technology Trends for Agents

As the role of real estate technology and innovation scales up, it becomes even more important for real estate agents to keep up with the change. New real estate technology trends for brokers most often include AI-powered customer relationship management systems, real estate marketing automation technology, and report generation tools.

In fact, these real estate tech trends strive at the intersection of all other above-mentioned real estate innovations, like AI, cloud computing, and data analytics.

Obviously, transitioning from traditional (or old-fashioned) spreadsheets and paper notebooks to AI automation and digital tools might be uncomfortable and painful. Nevertheless, mastering the cutting-edge real estate technology trends is nearly a requirement in today’s atmosphere, as this means maintaining a competitive advantage and staying ahead in the industry.

Here are two of the key reasons why real estate innovation is crucial for real estate agents:

  • Customer expectations around the property are shifting. If just a decade ago tenants would seek real estate services on-site, today many choose to use mobile or web searches. In addition, tenants and buyers want higher levels of personalization, which requires having all past communications in one place and being able to access them from anywhere. As a result, not having a strong online presence and keeping data in Excel actually takes away real estate deals.
  • Brokers can also increase their operational efficiencies by implementing recent real estate innovation ideas such as AI-driven marketing automation, streamlining operations and workflows, utilizing Virtual Reality for property viewings, and using chatbots for better customer support quality.

Customer Relationship Management Systems (CRM)

Your data is the lifeblood of your CRM system, and the CRM system makes sure you’re using your data to the fullest.

A customer Relationship Management System, or CRM for short, is an all-in-one platform for managing/tracking a company’s relationships and interactions with existing and potential customers. It aggregates all aspects of business and makes the collaboration between sales, marketing, and administration easier than ever before.

There is generic CRM software like Sugar CRM, Salesforce, and MS Dynamics, which works fine for most industries but does not always match highly specific business needs like those in real estate. On the other hand, there are specialized CRM platforms tailored to real estate processes – AscendixRE, Buildout CRM, or RealNex.

Common functionality of real estate CRM systems includes:

  • Cloud operation / online access from a desktop or mobile phone
  • Smart prospecting tools to mine targeted lists of contacts
  • Workflow automation to assign tasks, get reminded about upcoming events, and skyrocket real estate agent efficiency
  • Visualization tools and advanced data analytics
  • Automated commission calculation, stacking planning, and more.

Real Estate Marketing Technology

As the world has globally switched to online mode, word of mouth or direct mail is no longer enough to win prospective clients. Today, having an online presence is crucial.

To strengthen the brand and client experience, real estate agents more and more often opt for marketing realtor technology, like listing portals that let you publish and update your listings right from your CRM (MarketSpace) or automated marketing campaign tools to send personalized journeys to clients (additional service in RealNex and Buildout).

On the whole, marketing realtor technology is commonly associated with the following functionality:

  • Personalized email campaigns
  • Third-party listing site integration
  • Lead generation, qualification, and nourishment
  • Advanced stacking planning
  • Integration with CRM, and more.

Ascendix MarketSpace goes beyond this. Apart from the basic features listed above, the platform includes collaborative project workspaces, a document signing program, and secure deal rooms, all within one core solution AscendixRE CRM (Unlimited plan only for $129/mo).

Report Generation Tools

Brochure generation still has its place under the sun, but a bit in a different form: clients more and more often request marketing collateral online. And if every real estate agent can generate more or less decent collateral in amateur tools like Canva or Photoshop, the key differentiator here is how quickly they can do it.

With marketing automation software like Ascendix Composer or Buildout, on the other hand, you’ll be able to generate digestible, meaningful, and professional documents in a matter of 5 clicks as all property data, photos, and client records will be pulled out from your CRM system or another database, so you won’t need to fill in all fields manually.

The beauty of Ascendix Composer is that, unlike Buildout or other solutions, you do not need to invest in yet another stand-alone solution, as Composer is already included in your subscription.

Which Technology Real Estate Startups Will Receive More Funding?

Real estate technology trends, like AI and IoT, are now actively reshaping real estate, driving a significant change in the industry. Therefore, real estate technology startups which use AI, IoT, and big data innovations are likely to receive the most funding. Commercial lending and financial platforms will also offer a ripe prospect for tech real estate startups.

AI lease abstraction, valuation tools, investment prediction and management tools, automated property management platforms, and AI-powered chatbots and property search are the biggest real estate tech trends, which transform the real estate industry and are likely to get most of attention and funding in the upcoming years.

Will Real Estate Agents Be Replaced?

Despite initial concerns about the threat of artificial intelligence, the rise of AI and other real estate technologies and innovations hasn’t led to a surge of jobs being replaced by machines, and neither is it likely to in the foreseeable future.

While current real estate technology trends significantly improve real estate operations and will definitely continue to help us derive greater value from client interactions, it can never replace the nuanced regional knowledge and skill in negotiating in a very emotional environment, which so far has been a luxury only available to humans.

Both sellers and buyers can be very emotional during a transaction, which by far is one of the most important milestones in most people’s lives, and I can barely imagine sending clients to a chatbot-type app asking them to “press five” to reach a representative in some far-flung office.

So, until real estate technology can behave “emotionally,” it is very unlikely that real estate agents will be replaced by some realtor technology in the near future.

Ascendix AI Experience

With our immense real estate expertise, Ascendix stands at the forefront of real estate technology development, effectively harnessing the power of artificial intelligence. Ascendix’s innovative solutions utilize AI to streamline various processes in real estate, such as lease abstraction, property search, or automated customer support. Let’s discover Ascendix’s commitment to technological excellence in more detail:

  • AI lease abstraction tool. Ascendix team has developed the real estate technology of lease abstraction facilitated by AI, using tools like Azure OpenAI, Azure Form Recognizer, and Azure Cosmos DB. Lease abstraction software scans different types of real estate documents and provides a summary that is convenient to work with. The tool ensures high data security, understands industry specifics, and also can be customized.
  • AI property search. Having utilized the technology of natural language search and natural language processing algorithms, Ascendix has created AI-driven property search, tailored for listings and real estate marketplaces. It enables the user to insert a search query in usual conversational language and get the most relevant results.
  • AI chatbots. Conversational AI was used to design Ascendix chatbots, which can assist prospective buyers and tenants by answering queries about property listings, location details, pricing, and many other typical questions about the property. This is highly valuable for handling routine tasks like scheduling property viewings, processing rental applications, and addressing maintenance requests.

These examples of utilizing AI for real estate showcase Ascendix expertise and experience in developing the software, which is best tailored to the needs of agents, brokers, customers, and other real estate players. If you want to implement AI in your business, Ascendix is a reliable and seasoned partner.

How Ascendix Helps Keep Up with Real Estate Trends

With the dynamic evolution of real estate trends at the intersection of real estate technology and innovation in software, it has never been a more important time to be proactive in adopting disruptive technologies like AI, Big Data, or Virtual Reality.

If you are ready to embrace real estate innovation but don’t have internal resources to involve in the development process of your Proptech product, consider hiring Ascendix – a seasoned proptech development firm with 16 years in real estate and professional services. Here is why our clients choose us:

  • Headquartered in Dallas, Texas, we know the local real estate market like the back of our hand
  • We have developed disruptive proptech solutions for real estate titans like JLL and Colliers
  • We have been at the forefront of business tech innovation since 1996
  • With 3 offshore offices in Europe, we offer reasonable development rates and round-the-clock delivery
  • Not only do we have extensive expertise in real estate, but we also have designed our own family of products that help real estate professionals automate tedious tasks and stay efficient.

Tell us more about your technology challenges and we’ll make sure you address them with smart proptech solutions that will pay dividends for years to come.

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FAQ

How is Technology Disrupting the Real Estate Industry?

Technology is transforming the real estate landscape by digitalizing and automating traditional industry practices. The rise of artificial intelligence has altered the way properties are appraised, listed, searched, and marketed, providing a more convenient experience for buyers and sellers. Virtual reality technology enables virtual property tours, allowing potential buyers to explore homes remotely. Big data analytics enhances market insights, enabling better pricing strategies and investment decisions.

What's the Next Big Thing in Real Estate?

It’s hard to point out a single real estate innovation bound to transform the industry. Real estate technology trends like artificial intelligence, virtual reality, and big data analytics are definitely going to reshape the industry, enhancing customer experience and streamlining operations. Sustainability and eco-friendly practices are also becoming important, with a rising demand for environmental awareness. Additionally, the incorporation of Internet of Things (IoT) technology has emerged, contributing to smart and efficient urban living. Ultimately, the next big thing in real estate is likely to be a combination of technological innovation, sustainability, and a focus on incorporating real estate technology in daily life.

What New Technology is Impacting the Real Estate Industry?

The real estate industry is undergoing a transformative shift with the integration of innovative technologies. Artificial Intelligence is revolutionizing real estate processes, aiding in predictive analytics, streamlining business operations, effective customer service, and quick lease abstraction. Virtual Reality is used for immersive virtual tours, providing potential buyers with detailed views of properties. Big Data Analytics is utilized for gathering and analyzing vast datasets, offering valuable insights into market trends and investment opportunities. Internet of Things (IoT) devices contribute to smart home implementation, enhancing security and sustainability. These real estate technologies are fostering efficiency, innovation, and improved experiences for real estate customers, investors, agents, and other professionals.

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