The Short Answer
After a turbulent few years, the real estate industry is experiencing a time of innovation fueled by property technology (proptech) like AI, augmented reality, big data and predictive analytics. These technologies are significantly impacting the real estate world by transforming how things have always been done, and changing the future of real estate. 3 of the most impactful proptech trends we can see in 2024 and beyond, are:
- 3D virtual tours which allow anyone to get a full impression of a property without having to physically be there
- Tokenization of real estate through blockchain technology which allows for partial ownership of a property
- Crowdfunding platforms that bring real estate investors and borrowers together to get projects funded and give investors the chance to invest in various sectors
Jump To
After a volatile period in the real estate market, technology is a saving grace which is propelling the industry forward at a rapid rate. While property owners have been feeling the pinch of high mortgage rates in recent years, the market is changing slowly, and with this stabilization comes space for innovation. New technology like AI, augmented reality and predictive analytics are fueling the proptech (property technology) trends for 2024. Let’s take a closer look at 12 of the key proptech trends with that are likely to have the most significant impact on the real estate sector in 2024.
Key Proptech Trends In 2024
Here are the key proptech trends that are likely to influence the real estate market market in 2024 and beyond.
Trend 1: 3D Virtual Tours
Gone are the days where 360 degree video tours and high-quality photos provide a good enough overview of a property. Millennials demand something better, and so one of the most used proptech trends that we’re likely to see in 2024 and beyond are 3D virtual tours. Thanks to augmented reality and virtual reality, more immersive, interactive experiences are being created for buyers and renters.
3D virtual tours are likely to speed up the decision-making process as buyers and renters can view multiple properties in a matter of minutes, all online. This trend is also likely to attract a wider range of buyers, as prospective buyers in other countries can experience properties like never before, dropping the geographical barriers we’ve seen before in real estate.
Trend 2: Tokenization
The rise of blockchain technology has resulted in real estate becoming a more liquid asset than ever before. Essentially, tokenization allows for real estate ownership to be converted into digital tokens, and buyers can purchase these tokens which allows them to own sections of properties. This can also be called fractional ownership.
Tokenization is a useful way to make real estate more liquid and reduces the costs, and this results in real estate becoming more accessible to a wider audience. Properties can be shared and traded in a transparent and secure way, thanks to blockchain technology that allows for transparency for all parties throughout transactions. Investors can use fractional ownership to diversify their portfolios easily, and reduce their costs. In 2024, tokenization is being adopted more in the commercial real estate sector, and among high-value properties.
Trend 3: Personalized Searches
AI and machine learning are infiltrating many aspects of real estate in 2024 and going forward. One of the biggest trends in most industries this year has been personalization, and real estate is no different, with AI and machine learning being used to personalize property searches, using each user’s search history and preferences, along with market trends. This proptech trend allows users to find properties that are more suited to their needs than ever before.
With users being matched with suitable properties quicker, the entire process can be sped up for all parties involved. This leads to happier customers overall. In 2024, the personalization that we are currently seeing will become more sophisticated as AI and machine learning grows more advanced.
Trend 4: Crowdfunding
Real estate crowdfunding is becoming more popular in 2024 and the future looks bright for this inclusive way of investing in real estate and finding funding for real estate. Real estate crowdfunding platforms bring investors and borrowers together, to facilitate the funding of real estate projects. Investors can pool their funds, to fund these projects, and receive returns in the form of interest or a share of the project’s profit.
Crowdfunding platforms are likely to keep growing in 2024, and in the coming years. These platforms make real estate investing more accessible, and lower the capital required to invest. Investors can diversify their portfolios into various types of real estate, while those who are doing real estate projects can get access to funding from various sources. In the future we’re looking at additional uses for crowdfunding, such as urban developments or sustainable housing projects. Crowdfunding platforms are also likely to expand their offerings and offer more flexible investments.
Trend 5: Marketing Automation
AI is being used to enhance marketing campaigns by personalizing messages, automating followups and refining targeting. Using AI to automate various aspects of marketing campaigns results in more effective and efficient campaigns, saving both time and money for those running the campaigns.
We’ll see more of this in 2024, with real estate agents, investors and others using AI to automate and personalize their marketing efforts. Chatbots and virtual assistants are two examples of how proptech is working in this space to enhance real estate marketing by increasing engagement and providing fast solutions. Campaign success rates are likely to go up, and as this proptech trend gets more refined, it’s likely to be even more successful.
Trend 6: Big Data
AI is being used to analyze large datasets within the real estate market and big data is playing one of the most important roles in real estate moving forward. Big data in real estate involves collecting and analyzing vast amounts of data from various sources (market trends, property values, social demographics, etc.) to gain insights for decision-making.
These insights form a large part of making the customer experience more unique and personalized. More intelligent recommendations can be made, trends can be forecasted, investment opportunities can be identified and risk can be assessed more effectively. This is also used to optimize property valuations and provide insights for sustainable building projects which are becoming a more common.
Trend 7: Property Management Software
Property management software enables the centralized operation and management of multiple properties from a single platform for real estate professionals. As one of PropTech’s earliest innovations, property management software remains widely utilized across the industry. In 2024, property management is improving the operational efficiency for landlords and property managers.
AI-driven maintenance prediction, tenant retention analytics and integrated financial reporting are all becoming standard these days in property management platforms. These features are enhancing the property management process, making it more effective and allowing multiple properties to be managed remotely, making the process more scalable.
Trend 8: Internet of Things (IoT)
IoT and smart home automation is a rising proptech trend for 2024, to make tenants and home occupants more comfortable. For instance, these technologies enable remote control of air and temperature, appliance management, and other maintenance tasks. IoT provides operational efficiency, reduces energy costs, and enhances tenant comfort.
The future of IoT is going to see an expansion into the commercial sector, with more buildings and high-rises adopting these smart systems. IoT will be useful when it comes to gathering valuable information for predicting when maintenance will need to be done and energy management.
Trend 9: eSigning
The electronic signing (eSigning) sector, while currently dominated by DocuSign, is infiltrating many industries including real estate. Over 2024 we’ve seen a rise in the use of eSigning solutions, and this is where proptech comes in. There’s a rising need to eliminate in-person meetings, and allow for signing real estate documents online. Proptech is ensuring that this is a staple in the real estate sector, to simplify and speed up transactions for buyers, sellers, and renters.
Essentially, deals can be closed faster and buyers/sellers/investors are able to enjoy a more efficient and flexible process, without all the paperwork. Add to this, the fact that blockchain technology and identity verification can now be used to make the process more secure and transparent, and eSigning becomes even more useful.
Trend 10: Digital Twins
Digital twins are virtual representations of properties that provide real-time data on the operations and performance of the buildings. Digital twins can be used to monitor systems like HVAC, lighting and security, and predict a property’s maintenance needs ahead of time. Digital twins help to reduce energy costs, maintenance costs and operational efficiency. These also allow property owners to make decisions about property development using the data that is provided.
In 2024 and beyond, digital twins are likely to be used for anything from commercial real estate to residential complexes. Through integrations with IoT and AI, digital twins can be used by property managers to make monitoring properties and maintenance requirements easier.
Trend 11: Flexible Leases and Co-living
Flexible leasing models give tenants the opportunity to rent properties for shorter periods of time, to cater to changing consumer needs. The aim is to give landlords to chance to gain higher occupancy rates, by attracting a wider range of tenants.
Co-living is another rising proptech trend in 2024 and beyond, these spaces provide a communal living space which can be used by multiple occupants. The demand for shared living spaces is growing, and stemming from the rise in those who are remote workers and can live anywhere, as well as younger generations who have less desire to own their own property.
Trend 12: Smart Contracts
Smart contracts are automated contracts that execute themselves based on pre-determined terms that are coded at the outset. Smart contracts create a level of automation and efficiency that makes transactions smoother and quicker. In real estate, this could mean the automatic transfer of property ownership and funds once all requirements, such as inspections and payments, are fulfilled.
The use of smart contracts in 2024 is gaining momentum, and this is likely to continue in the coming years. As blockchain technology becomes more widely adopted, and the legalities around blockchain become more clear, smart contracts will be used more frequently to speed up real estate transactions, reduce costs and improve transparency. Smart contracts are particularly important for automating processes like lease agreements, property sales and payment processing.
How These Trends Are Transforming The Real Estate Industry
Proptech trends are revolutionizing the real estate industry, as each year passes. This is driven by the changes in consumer needs and market dynamics. As such, proptech platforms are allowing real estate companies to remain relevant and continue to tap into what their customers need. Here are the key ways that these proptech trends are transforming the industry:
- Enhance Efficiency and Automation
Real estate transactions and processes are becoming more efficient due to proptech trends like AI, digital twins, IoT devices and automation. Now, certain tasks can be automated, which speeds up processes and cuts out extra steps. This allows property managers, investors, landlords and real estate professionals to scale their businesses more easily and spend less time on slow manual tasks.
- Customization and Improved Engagement
In the age of personalization, proptech is enhancing the customer journey, whether for buyers, renters, or investors. 3D virtual tours, personalized property searches, and eSigning platforms are simplifying property transactions and making the process more convenient. These technologies reduce geographic and logistical barriers, allowing customers to view properties, complete transactions, and manage leases remotely. The focus on user experience is driving higher customer satisfaction and more seamless transactions, transforming how people interact with real estate. AI is a large contributor to spotting trends, analyzing data to determine what customers need, and thereby allowing businesses to adapt to this.
- Increased Accessibility
Tokenization, which allows for ownership of portions of a property, and crowdfunding, which allows for investment in a variety of real estate projects through pooling funds, are both increasing accessibility of real estate. Being able to own fractions of a property, opens the door to investors who may not have enough upfront capital to outright purchase an investment property. Crowdfunding gives investors the opportunity to diversify their portfolios and also gives investors the chance to split their funds among many different projects and tap into a variety of avenues within the real estate industry.
- Global Real Estate Transactions
Augmented reality, virtual reality, 3D virtual tours, eSigning and smart contracts are all working together to create a borderless real estate industry that is more accessible to people all over the world. Now buyers and investors can access markets that they would never have been able to access before. The real estate market has become more inter-connected than ever before, and portfolios can now easily be expanded into international territory.
Final Thoughts
The continued growth of proptech is reshaping the foundations of real estate, offering more efficient, transparent, and globally accessible solutions. As consumer expectations evolve and technology becomes more integrated into every step of the property journey, we can expect even greater transformation in the years ahead.
These trends are not only meeting the immediate needs of buyers, sellers, investors and real estate professionals, but are also paving the way for a more dynamic, inclusive, and interconnected real estate sector that operates with a level of efficiency and precision never seen before. The real estate industry is set for an exciting future, driven by technology and innovation.