Technology and its effect on the future of real estate

Technological developments are rapidly shifting the way we live. The property market is no exception, as these innovations will definitely determine the future of real estate. Technology is completely changing the industry; from the way we sell, buy, or advertise a property, to the modern amenities that are always included in newer homes.

In this article, we will take a look at some of the ways technology will determine the development of the real estate market. There are many ways in which these advancements will reshape property trends and the way the business operates.

1. What are the most significant factors that influence the future of real estate?

2. How is the technology impact set to reshape the future of the real estate industry and the way it operates?

3. Which are some of the future real estate technology trends?

4. How receptive has been the UAE housing sector to the new technologies in the real estate market?

5. What makes proptech a valuable game-changer for the UAE real estate sector?

6. Why do real estate players need to consider taking advantage of emerging technologies?

7. How can Connect Property technologies help you for the prosperous future of your real estate business in Dubai?

1. What are the most significant factors that influence the future of real estate?

A variety of factors have an effect on the real estate market, which can lower or raise the properties’ price. It is not possible to predict the future of real estate performance when it comes to property investments. However, understanding how the industry works and the numerous factors that influence it can help to make better investment choices. These are the factors that are most likely to impact the housing market:

1.1. Technology

Changes in technology can influence the trajectory of the real estate sector. Many online technological tools make it now possible to look at properties and even have a tour without having to go physically.

In addition, technology in real estate has originated other methods to buy and sell property, and sellers can find the most qualified buyers for their properties for sale.

1.2. Economy

In general, the real estate market mimics the overall economy. For example, when the economy is doing well, the property market tends to do well. If the economy is trending downward, the market does the same.

1.3. Government involvement

In certain cases, the government can affect the real estate market. It can offer credits or subsidies to buyers to help an inactive market. By doing that, it will encourage people to purchase homes amidst a recession, moving the recovery forward.

1.4. Employment

Employment can have an impact on real estate in several ways. If an area sees an increase in available jobs and employees, there is a high chance that this area will increase the demand for housing. It does not only affect the housing market; employment opportunities also affect the demand for buying commercial property.

2. How is the technology impact set to reshape the future of the real estate industry and the way it operates?

Today, economies begin to recover and employees return to offices. This has led to a growing realization that new technology in real estate is increasingly having a major impact on the way the industry operates. For example, innovations such as proptech are playing an essential part as the real estate sector emerges from the Covid-19 pandemic. Besides, these technologies provide more flexibility. They also enable a mixed model where personnel can alternate between remote work and working at the office.

In the same way, the growing recognition that proptech is incredibly important to the future of real estate is encouraging a flood of investment in the real estate sector. With the purpose of guarantying workspaces that deliver the necessary benefits to landlords, tenants, and investors. For this reason, it is also fundamental for companies to invest in solid smart building foundations such as cybersecurity and data protection to maintain the positive flow of current and future real estate trends.

Proptech is attracting attention from real estate investors for another significant reason. It is continuously more aligned with the ESG (environmental, social, and governance) objectives of assets managers. Technology in real estate and better use of reliable immediate information on the performance of buildings is acquiring more importance.

 This aspect is especially relevant given the imminent risk of future carbon tax and energy offsets. These measures will directly affect the future of real estate investment and operational performance.

In summary, technology solutions are an essential part of the ESG strategies to reduce environmental impacts. The ability to track metrics such as energy performance and fuse them with AI in real estate buildings means an impact on the indoor environment. This will improve customer comfort and reduce the environmental footprint.

3. Which are some of the future real estate technology trends?

Universal real estate is the largest asset value ever in the world. For this reason, it is not surprising the witnessed significant investment in proptech, which has no signs of slowing down. The increased flow of investment in property technology will have a domino effect on the future of real estate technology trends, such as:

3.1. Wellbeing and community

The flexible office market has grown increasingly over the last few years. Community-focused campuses, office towers, and new full services are being developed to match the current human resources expectations. Therefore, well-being and community are key components in the future of real estate trends as it moves toward a wholeheartedly user-led business model.

3.2. Green buildings

It is not surprising that green initiatives dominate the future real estate trends, as the world has woken up about climate change. As the built environment is responsible for a great part of global emissions and more eco-minded tenants are interested in ecological assets, companies must know how to achieve sustainable success, starting with green buildings. Real estate agencies can obtain a higher rental income and reduce energy consumption.

3.3. Blockchain

The opportunities for blockchain technology in real estate are numerous. They can range from data-driven city management to transformed operations right through to public services. Real-time data will benefit the decision-making process. This way, it will save hours through the digitization of tedious offline due diligence.

The future of real property trends lies in the hands of big data, the internet of things, and AI in real estate, which will take the industry to the next level.

4. How receptive has been the UAE housing sector to the new technologies in the real estate market?

At first, the market of properties was staying behind in adopting digital tools and solutions. However, recent years have shown a heavy investment in upgrading resources with emerging technologies. As an estimate, global proptech deals amounted to an overall value of more than 25.7 billion AED. Undoubtedly, this shows the growing importance of technology for the future of real estate.

The UAE is a major example when it comes to proptech investments. The nation’s construction and building sector has greatly embraced this technology, with digital tools and tech-enabled solutions already affecting the lifecycle of the buildings in the country. Starting from the design stages all the way to the construction and upcoming operations, there is a clear presence of technology in real estate.

A crucial reason for this increasingly fast adoption of technology in the UAE’s real estate sector is the seemingly endless innovations it provides in all aspects of property business functions. For this reason, the easiness of collecting demographic and economic data empowers the sales force with vital information. This improves customer engagement and satisfaction.

Data-led decision-making and machine learning also provide scalability of equipment, spaces, and building systems, which greatly benefits the construction management teams. Overall, the future of real estate will see a continuous use of technology because of its positive impact in all areas of the industry.

5. What makes proptech a valuable game-changer for the UAE real estate sector?

The arrival of disruptive innovative technology solutions and the profits earned from them have catalyzed digital easing across many industries. The UAE real estate industry is not exempt from the impact of new technologies. Therefore, the industry has become more receptive to these cutting-edge technologies. It has seen a rise in specialized tech solutions that focus on property management and real estate assets.

The scope of property technology has expanded remarkably in recent years to include a variety of tools. For example, AI-powered valuations, blockchain transactions, information transparency, and online real estate listings. Besides, their newness gives way for property technology firms to develop and modify solutions tailored to the particular technology subsets. Many occupiers and developers are excited about them and the way they will change the outlook for the future of real estate.

The onset of the pandemic has further impulsed the digital adoption in the real estate space. Hence, all the players in the industry are transforming how they cater to the customer’s needs digitally. In addition, this digital transformation within Dubai’s real estate sector has been sustained by the evolution of the UAE smart ecosystem. The Dubai Land Department introduced AI in real estate properties’ valuation process, to reduce the processing time and cut costs. In the same way, the government-run entity has also made use of AI to verify Ejari contracts.

Furthermore, the evolution of digital solutions has made property investments more affordable and accessible. Real estate investment platforms are encouraging both seasoned and first-time investors to take into consideration a range of property investments through a crowdfunding model.

6. Why do real estate players need to consider taking advantage of emerging technologies?

If you work in the property industry, keeping up with new technologies is vital in finding opportunities to grow. The future of real estate will be heavily marked by digital innovations, and now is a great time to learn about these emerging technologies:

• Business intelligence has been greatly enhanced thanks to websites that provide metrics, social media, and mobile applications. Harnessing the data from these sources can help real estate agencies make smarter decisions, as they can predict with greater success future trends.
• Blockchain has been a growing trend for the last few years. This technology provides safe property transactions thanks to its secure purchase protocols. The payments are transparent and can be easily confirmed.
• Artificial intelligence algorithms can help businesses thanks to their capabilities to manage great amounts of data. There is a great role for AI in real estate, such as allowing a fast and accurate matching of property and possible tenants. Everything the algorithm needs to achieve this is to look through certain criteria within arrays to give a quick result.
• Smart homes are essential in the property market thanks to their perfect combination of a house and the internet of things. These assets can provide innovative amenities for its residents and give property agents valuable data such as the average cost of electricity in a certain amount of time. Here is everything to know about smart home tech.

7. How can Connect Property technologies help you for the prosperous future of your real estate business in Dubai?

Connect Property provides users with the latest technology in real estate. Our search tools include advanced filters that allow you to look for properties based on their location, characteristics, and price. These features lead to a much more efficient process as you find your ideal home.

Our goal is to make it easier for property owners to list their houses and advertise them to find potential buyers. We provide an intuitive experience through our website so more users can simply navigate and find the real estate asset they need. For any additional help, our 24/7 assistance hotline is readily available with team members willing to help you.

Learn more about the ways technology can change your real estate business with the help of Connect Property. If you would like to speak to one of our advisors, call us at +971 4331 6688. You may also contact us through email at contact@connectproperty.ae, and a representative from our company will answer all of your inquiries as soon as possible.

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