The Impact of Advanced Technology to the Real Estate Industry
This case study describes the challenges faced by REIT professionals while embracing and implementing innovative technology solutions. Then it explains the adoption of cutting-edge technology solutions in real estate holds the potential to fundamentally revamp how business is done in this long-standing sector and how real estate managers can truly benefit from the centralized real estate IT solutions.
The Challenges Faced by REIT Professionals While Embracing Latest Innovations
The most common challenge for real estate professionals is to embrace new systems that enable business growth by adding genuine value to their services. We must avoid the trap of implementing digital processes unsystematically and without anticipating real benefits. Instead, we must be able to see things from a broad perspective to recognize the “pain point” of industry and the customers it serves, which can be resolved by implementing digital solutions.
Furthermore, the commercial real estate sector operates in a transactional environment, where data management is incredibly crucial. Real estate professionals have to keep up with the invention, property search, prospecting, workflow, reporting, verification, and tracking altogether. A deal could fall through if there is even a minor issue in one particular area.
The emergence of new technologies in the real estate market forces the existing players to reconsider their offers and portfolio management strategies. The real estate industry is undergoing an Uberization because its customers want new features and innovations. In more realistic terms, the digitization of the real estate industry necessitates the adoption of technological tools that will radically transform existing workflows and applications.
Although a large number of real estate companies have started to make significant strides toward increasing data transparency, there is still a lot to be done. For example, a system with no centralized visibility is of no use to senior-level executives. There is simply no room for error when it comes to property management data because data accuracy and visibility are crucial to the success of commercial real estate transactions.
Although technology in the commercial real estate sector has advanced significantly in recent years, there is still much to be done, and there is still plenty of room for creative thinkers who want to find solutions to some of the biggest problems the sector will face in the future.
Impact of IT Solutions on Real Estate Industry
With a global market value of over $7 196 billion, real estate is a significant part of the global economy.
In some ways, technology adoption in the real estate industry has lagged behind that in other industries. It was partially brought on by a reluctance to abandon tried-and-true strategies. The efforts of major players to create exclusive tools also slowed down the adoption of real estate technology. But these problems are now less of a concern, and real estate technology has grown in popularity recently.
The key players in the industry are also beginning to see the advantages of spending money and utilizing cutting-edge technology. In 2020, 53% of real estate companies will be directly investing in technology, according to a University of Oxford report titled Technology and The Future of Real Estate Investment Management. While 56% of Statista respondents said they have already noticed the impact of technology, 42% of respondents admitted they see potential in smart building technologies.
Accuracy of data hugely affects business decisions, and because there is still no centralized national agent system, new startups will have limitless opportunities to improve and alter the current procedure. Therefore, this is the ideal time to develop a novel solution for this sector. You can have an application that will analyze a large amount of data and provide meaningful information that real estate stakeholders need to make decisions. For instance, a portfolio management solution can visualize the performance of their portfolios, track the progress of various tasks, and monitor critical business operations.
Dealing with real estate transactions can be difficult, particularly when it comes to communication. In order to resolve these problems that allow two groups of users to communicate online, new technologies are being implemented. For example, Microsoft Teams and Yammer are increasingly being used by many industry professionals. Similarly, realtors can use these innovative apps to empower in-context communication, file sharing, and transaction tracking in one centralized location. Additionally, you can create a tool that enables potential buyers to ask a chatbot some quick questions, saving real estate agents a massive amount of time.
The need to utilize resources has never been more crucial than it is now, as real estate professionals are becoming more mobile. Brokers need to be able to communicate with clients efficiently, but they also need to be able to do so with one another as efficiently as possible. Real estate professionals now have the flexibility to work whenever and from wherever thanks to advancements in mobility. Due to the growing globalization of commercial real estate, this area will need to continue to develop.