Big data swaggers in, machines will learn more and bots will be everywhere
Unless psychics or clairvoyants actually exist, it’s impossible to predict the future with exactitude. And even those possessing such soothsaying abilities might pass on predicting emerging real estate technology trends in favor of more exciting stuff like celebrity news or political machinations.
But for many, emerging real estate technology trends for 2023 is of keen interest and utmost importance. Mortgage Professional America turned to David Bitton, the CMO and co-founder of at DoorLoop – a property management software for the real estate PropTech industry that has raised $30 million – as our fortune teller of choice. A member of the Forbes Technology Council, Bitton previously offered MPA glimpses into what the rental and property management sectors might look like next year.
So without further ado, here are some of the emerging real estate technology trends Bitton envisions for 2023:
Big data enters the scene
“Data empowers real estate professionals in many ways,” Bitton began. “Using data analysis to develop data-driven, long-term strategies is now standard practice among real estate firms. Businesses in the real estate industry can leverage big data to foresee trends, possibilities, threats, and strategies. With big data, companies can make decisions based on evidence.”
But wait, there’s more: “Furthermore, presenting projections based on data makes proposals more transparent and convincing, increasing customer satisfaction and inviting more investment,” he added.
The dominance of AI and machine learning
“It’s one thing to collect data,” Bitton said. “It’s another to maximize it fully. Artificial intelligence (AI) and machine learning (ML) move collected data into action almost instantaneously. The combination of AI and ML makes for more accurate identification of patterns, leading to smarter decisions. The upshot: “Because of this, in 2023, we’ll see more real estate firms and agents start using AI-powered tools to streamline and enhance their operations,” Bitton predicts. “One of today’s AI and ML use cases is online real estate marketplaces,” Bitton noted. “These marketplaces utilize AI to personalize the home search process,” he explained. “They are designed to provide results based on users’ search behaviors. Aside from the increased use of these marketplaces, real estate professionals will also maximize AI-enhanced tools to analyze the sales funnel and generate targeted campaigns to improve conversion.”
Bitton added: “AI and ML also boost functionalities of property management software and IoT devices such as security and surveillance systems. There are also applications based on AI and ML models that can accurately predict home values and rent changes.”
5G will be the standard for smart property management
“With today’s 5G connectivity, compatible devices and sensors can communicate consistently, accurately, and securely with other systems and devices,” Bitton observed. “This paves the way for smarter and more inclusive property management. Smart homes will become even smarter. As such, 5G will be the standard for internet-powered home automation devices and systems in 2023.”
Real estate bots will be widespread this year
“The use of advanced real estate bots will be widespread in 2023,” he said. “These bots include chatbots, virtual assistants, and voice bots. They will facilitate communication with customers and provide quick and accurate assistance. With these bots, real estate agents can effectively and promptly communicate with their clients and provide them with clear and relevant solutions.”
More robust data security is in the offing
“As property owners and real estate firms continue to use the internet and online applications and devices in managing their properties and conducting business, more data is continuously produced,” Bitton predicted. “Because of this, cybersecurity and data privacy and protection will be top priorities.”
Blockchain in real estate to become more prevalent
“Real estate transactions frequently involve multiple parties and may be handled quickly and in minutes using blockchain technology,” he said. “The blockchain ecosystem can also eliminate paperwork and red tape and minimize costs. Consequently, it ensures transparency. Blockchain transactions are also more secure due to the decentralized method of asset recording and transfer.
“Blockchain is ideal for reducing the incidence of real estate fraud and improving compliance. This will help reduce tax leaks and increase property values. Due to these advantages, I believe the use of cryptocurrencies and blockchain technology will rise in the real estate market in 2023.”
The metaverse, digital real estate amid the pixels
“Real estate in the metaverse consists of land in a virtual world, which are basically pixels,” Bitton began in providing context. “These are programmable areas that allow users to engage in a variety of activities, including socializing, playing games, attending virtual events or meetings, and more. As in the real world, real estate investors can flip or lease properties in the metaverse.
Like the universe, the metaverse is expanding: “By 2028, the global metaverse real estate market, which was valued at $821.9 million in 2021, is anticipated to reach $5.95 billion,” Bitton said. “Based on these projections alone, we can surmise that the growth of the metaverse market will continue through 2023.”