What is the future of real estate?

There is no denying that this is an exciting time for Real Estate. Although new challenges present themselves continuously, we must identify them, adapt, and overcome them. This is because embracing change provides professionals with new opportunities. Although many emerging trends exist within Real Estate, there is no doubt that technology is the new era in which we will operate. Seen as a traditional industry, only recently have these changes been adopted, however, these trends will only gain speed in the future.

One way to market a property is through Virtual Reality (VR). Carving a new innovative path, the question remains will this communication tool serve to tackle all-new challenges that this industry is facing? Although its use is effective in some markets, landlords still advocate the power of seeing a tangible space. The novelty of seeing a property before there is commitment will remain as a supreme viewing option.

What is Virtual Reality?

Achieved from a headset, VR is a new immersive experience that works to create a new reality. In property, VR is used to give digital walkthroughs, indicating a realistic perspective of space, size, amenities, etc… There is an entirely new potential here within this realm, one that tackles many disruptors including a changing demographic and transnational boundaries. Now, stakeholders from all over the world can consider buildings that were originally out of their grasp. In doing so, gaps are bridged between locations and cultures, unifying those within Real Estate in a way that has never been done before.

Perhaps the biggest benefit on a business level is the amount of time and money that can be saved, which is great for those entering into the business. This is because VR allows a building’s true potential to be seen without the necessary funds that only exist for those at the top of the market.

Particularly looking at marketing a property, displaying a new reality for prospective buyers means people can tour a fully furnished building that is currently obsolete, or even more extreme, an empty lot. This, of course, can all be done in the comfort of someone’s home.

How can we adapt to this new trend?

Although stakeholders should prioritise the traditional method of viewing a property due to their superior knowledge, it would benefit to offer an alternative for those who are unable to meet in person. This will ensure that a new presence is held within the Real Estate industry that compliments the humanistic viewing experience.  

Particular encouragement must be given to start-ups, who can elicit an immediate edge on competitors as it enables the prospective client to view an asset under consideration. This will ensure business and client growth, as well as a heightened ability to provide the best services for those who need it. Its relevance holds high because large real estate giants such as CBRE are late to adopt these strategies. Eventually, this can work to dilute an already concentrated market. 

VR’s presence indeed holds more in the residential property market.

According to the National Association of Realtors (2019), forty-four percent of prospective buyers will search for a property online before visitation.

However, there is no virtual experience that can take hold supremacy over a landlord’s inside out knowledge of a building. 

Biggest challenges?

Perhaps the most significant challenge relates to what the future holds. There is no doubt that VR is an innovative phenomenon that is both futuristic and forward-thinking. What will be next? Will humans begin to live their life in VR as well? Will Virtual Reality become New Reality? Although this is something to consider, making the traditional method of viewing a property more effective. 

What is the future of Virtual Reality?

Although it is hard to predict the future of Real Estate and to what degree things will take effect, VR as a pioneer is still a controversial topic. Although true, the amount of investment going into this sector is a great indication of where VR is heading in the next five years.

With the VR market estimated to be worth $80 billion by 2025, $2.6 billion of this is said to be from Real Estate alone (Goldman Sachs, 2016).

Stakeholders should consider how to integrate VR into their business strategy, whilst still offering in-person services. This way, this form of real estate will remain innovative and inclusive in nature. The future is bright, one that can offer both traditional and new ways of viewing properties.

Anna Simpson