The real estate market has evolved far beyond what it used to be with the emergence of game changing technologies and groundbreaking innovations such as blockchain technology, artificial intelligence, virtual and augmented reality, online inspection and buying amongst others.
The acceleration and leveraging of digital offerings to aid the real estate market has been deployed in several countries across the globe. Per Forbes, we will share some of these innovations.
Virtual And Augmented Reality
Virtual reality (VR) and augmented reality (AR) technologies are some of the most prominent and popular trends in real estate. During the pandemic lockdowns, they were invaluable to us to keep business moving as usual. Our brokerage, like many others, was using both Zoom and VR goggles to show and sell properties to prospective buyers all over the world.
It’s one thing to see 3D renderings or a 3D model, but with VR, buyers can immediately transport themselves into the space. A lot of times people have a hard time envisioning what a rendering will look and feel like in real life. With these technologies, buyers can see the finishes, the scale of the space and even the views without having to go anywhere.
Digital Housing And The Sharing Economy
The sharing economy has changed how people look at many types of purchases, including real estate. Instead of looking at property as a full-time residence, people are looking at it as a way to defray costs, build up equity and create generational wealth. Airbnb, VRBO and other web-based platforms have propelled this notion and have made it even easier for individuals to market their properties as short-term rentals where the average daily rate can earn more than a traditional long-term lease. This flexibility for buyers has increased the demand for second homes in destination locations and was the driving force behind our new downtown Miami project that blends residential with hospitality.
Blockchain is playing a prominent role in the digitization of real-world assets. While a lot of people are still unfamiliar with how blockchain is used in the world of cryptocurrency, when it comes to real estate, it can bring security, clarity and efficiency to real estate transactions. One specific way blockchain can help the industry is through tokenization.
Tokenization refers to the usage of cryptocurrency for the division of a property, turning it into tradable shares or tokens that will be stored on a blockchain network. For developers, tokenization could allow for more freedom and flexibility to raise capital, investors can move their funds efficiently and property owners can manage their equity more effectively — especially in the case of selling fractional ownership where liquidity and transferability have always been an issue.