5 Disruptive Real Estate Technology Trends

5 Disruptive Real Estate Technology Trends In 2024

July 10, 2024

Produced by:
Carmel Woodman

With over 8 years of expertise, Carmel brings a wealth of knowledge as the former Content Manager at a prominent online real estate platform. As a seasoned ghostwriter, she has crafted multiple in-depth Property Guides, exploring topics such as real estate acquisition and financing. Her portfolio boasts 200+ articles covering diverse real estate subjects, ranging from blockchain to market trends and investment strategies.

Reviewed by:
Richard Stevens

Richard Stevens is an active real estate investor with over 8 years of industry experience. He specializes in researching topics that appeal to real estate investors and building calculators that can help property investors understand the expected costs and returns when executing real estate deals.

The Short Answer

There are various real estate technology trends that are transforming the real estate industry in 2024, for the better. From enhanced security to increased accessibility and market predictions, these technologies are paving the way for an interesting future for real estate. Embracing these trends means stepping into a world where transactions are faster, data-driven decisions are the norm, and global investments are more accessible than ever before.

5 of the most disruptive real estate technology trends in 2024 are:

1 – Virtual reality

2 – AI

3 – Valuation tools

4 – Blockchain

5 – Big data and analytics

These technologies are not just innovations; they are revolutionizing how we interact with real estate. Virtual reality is making property showcases and construction planning more immersive and efficient. AI is providing smarter property searches, accurate market predictions, and improved property management. Valuation tools are simplifying and speeding up property transactions with instant and precise valuations. Blockchain is enhancing security and transparency, facilitating seamless global investments through smart contracts and tokenization. Big data and analytics are driving comprehensive market insights and smarter decision-making.

As real estate begins to veer away from traditional practices, in favor of these real estate technology trends, it becomes a more secure, more transparent, more informed industry for all participants.  

5 Disruptive Real Estate Technology Trends in 2024

The real estate industry has long  been known for its traditional methods and practices, however the advent of a variety of real estate technology trends has changed the future of real estate. From virtual reality tours to blockchain-based transactions, disruptive technologies are reshaping a range of transactions within the industry, including the way properties are bought, sold, and managed.

In 2024, there have been some significant technological developments that have created new trends, to increase efficiency and transform the real estate landscape for investors, consumers and agents. These enhancements in technology are essentially creating a more dynamic and accessible market.

1 – Virtual Reality (VR)

Virtual Reality

Property showcases

Virtual reality is a game changer for real estate. VR is often used in property showcases, for both sales and rental listings, in the form of 3-D property tours. These tours give buyers or tenants a clearer picture of the property and its overall size and layout through an immersive virtual tour that can be taken from anywhere.

 According to Matterport, homebuyers are 95% more likely to reach out to an agent after viewing a listing with a 3-D tour. Which means that properties with a 3-D tour typically spend a third less time on the market. Furthermore, agents can sell these properties at a 9% higher price.

Construction collaboration and visualization

Aside from buyers and tenants, VR technology is a useful tool for investors, architects, and contractors, who can use virtual walkthroughs and inspections to make decisions with regards to design and construction. This is particularly useful for properties that are under construction or in the planning stages, where VR provides a tool to visualize the finished product.

Staging and personalization

Real estate agents can digitally furnish and decorate a property, helping potential buyers envision themselves in the space. Agents can show buyers various customization options which allow them to choose different finishes, colors, and layouts. This creates a much larger appeal for properties as buyers can envision themselves in a home easier with their preferred aesthetic.

Real estate agent training

Real estate agents can use VR to do training, by simulating various scenarios to improve their sales techniques, customer interactions and property management skills. It’s a great way for agents to increase their competency and become more effective in their roles within the real estate industry.

Virtual real estate

VR’s impact extends beyond the traditional real estate sector and into the digital one. A popular trend in 2024 is for investors to purchase tokenized land and properties in the virtual real estate realm, particularly within the metaverse.

The metaverse market is projected to grow from $27.21 billion in 2020 to $824.53 billion by 2030. This demonstrates substantial growth potential not only for investors but also for real estate professionals such as agents and property managers, who may transition from physical to virtual real estate.

2 – Artificial Intelligence (AI)

Artificial Intelligence

AI is currently being used most effectively in businesses where a large amount of data is used, and real estate certainly fits the mold here. Some of the most common uses of AI in real estate include:

Property search and valuation

AI tools are being used frequently to analyze large amounts of data, in order to match property buyers or renters with a home that suits them. We’ve seen this in websites like Zillow and Redfin. Users can find a property that suits them based on their specific preferences, and these websites also provide property valuations which are a good estimate of the property’s value.

Predictive analytics

One of the most transformative ways that AI is being used in real estate in 2024 is to predict future market trends, property values, and investment opportunities. Fast data analysis is perhaps one of AI’s most useful qualities.

AI technology is essentially used to analyze historical data, along with current market conditions, to create predictions of what could happen next. These predictions can be used for real estate investors to gain insight into where they should buy, when they should buy or sell, and how to make the most out of their real estate investments.

3-D Modeling

Real estate is one of many industries that is making abundant use of AI-generated images, also known as “digital twins” that allow users to have an immersive experience of a property. These technologies enable potential buyers to explore properties remotely in detail, which allows buyers to envision the space as their own.

Matterport is one of the leaders in this space, and their technology allows buyers, sellers and agents to save time and money by exploring the augmented reality version of a property before visiting it in person. Matterport also offers 3-D renderings of properties that don’t exist yet, which gives architects a great tool to use for estimating costs and planning projects.

Property management

AI is streamlining property management by controlling aspects of a property such as energy usage, security, and maintenance. AI technology can therefore be used to predict issues, and deal with them before they arise. Saving time and money, and ensuring that tenants remain happy. AI technology automates tasks like payment processing and collections, and manages workflows to make property management more efficient.

Security

AI is used to enhance security in real estate transactions by analyzing patterns and identifying anomalies. Through this, AI can detect fraudulent activities and ensure the integrity of transactions.

3 – Online Valuation Tools

Online valuation tools continue to be a game-changer for the real estate industry. Working out the value of a home quickly and easily online, takes away a lot of the hassle associated with buying and selling property. These tools not only measure property values with precision but also provide the insights needed to manage and optimize real estate investments effectively. These tools allow real estate agents, buyers and sellers to conduct more efficient and informed property transactions.

Online valuation tools use large datasets and AI to analyze a host of factors that influence property values, including location, property features and local real estate market trends. Which means that the results are more accurate and consistent, compared to the traditional valuation methods that are based largely on opinions and input done by people.

Automated valuation models (AVM) speed up real estate transactions by offering instant valuations, and helping buyers and sellers make informed decisions in a matter of minutes.

Valuation tools can also be used to predict future trends, using the large datasets that have been analyzed, to identify trends that are emerging in the market and opportunities that may arise for buyers, sellers and investors.

Given that these tools are available online, there is more transparency across real estate transactions, and all stakeholders can access the information. Which empowers buyers and sellers alike, to make better and faster decisions, and speed up transactions.

4 – Blockchain

Blockchain

While blockchain technology is impacting several industries, real estate is one of the most interesting. The industry is being improved by two very impactful technologies, smart contracts and tokenization.

Smart Contracts

Smart contracts are self-executing agreements with the terms directly written into code. These contracts automatically carry out transactions once predefined conditions are met, boosting automation and efficiency. In real estate, smart contracts enable smooth and quick transactions, such as the automatic transfer of property ownership and funds once conditions like inspections and payments are fulfilled. This reduces the need for intermediaries and minimizes the risk of errors and fraud, streamlining the entire process.

Tokenization

Tokenization involves converting real-world assets into digital tokens on the blockchain. For real estate, this means properties can be split into smaller, tradable units. Each digital token represents a fractional ownership of the asset. Tokenization is transforming real estate by making it a more liquid asset, allowing individuals to buy and sell small portions of properties. This opens up investment opportunities to a wider audience, enabling more people to participate in the real estate market.

The synergy between tokenization and smart contracts is, and will continue to be, a game-changer for the real estate industry. These technologies work together to ensure secure, efficient, and transparent transactions. By 2021, billions of dollars’ worth of real estate assets had been tokenized using smart contracts, which shows the significant impact of blockchain technology on the market.

Transparency and security

One of the biggest improvements made by blockchain technology for real estate transactions is the increase in transparency and therefore security. Once information is entered into the blockchain, it cannot be altered without the approval of all parties involved. Which means that all transaction details are accurate and trustworthy, and this eliminates the risk of unauthorized changes.

The decentralized nature of blockchain means that all parties can easily access the information and verify or change it, which creates a higher level of trust between the parties involved in each real estate transaction. In other words, fraud becomes nearly impossible as manipulating or tampering with this information is extremely difficult to do without other parties seeing the changes.

International investment

Blockchain technology is dismantling geographical barriers, making international real estate investments more accessible than ever. Historically, investing in global real estate was a complex and challenging process, with many legal and logistical hurdles. However, blockchain has revolutionized this landscape by enabling the buying and selling of property internationally using digital tokens.

5 – Big Data and Analytics

Data and analytics

The real estate industry is a hive of data, and being able to harness this is paramount to making the best decisions with the largest amount of information. Big data and analytics are driving smarter decision-making, enhancing operational efficiency, and creating new opportunities for growth in the real estate industry in 2024.

Comprehensive market insights

Real estate professionals, buyers and sellers can all get access to comprehensive insights into the latest market trends, property values and consumer preferences. Big data, gleaned from social media, economic reports, and property transactions, is analyzed by AI and other technology using simple algorithms to create useful insights and make informed predictions. Essentially, data can now be used to empower buyers and sellers with knowledge of the current market, so that they can make more informed decisions.

Improved customer experience

Data analytics allows real estate companies to better understand their clients’ needs and preferences. By analyzing customer behavior and feedback, these companies can tailor their services, offer customized property recommendations, and improve the overall customer experience.

Enhanced risk management

Big data analytics can be used to identify potential risks and vulnerabilities in real estate investments. This means that real estate professionals can use the insights on these large datasets to mitigate any foreseeable risks with the appropriate strategies and plans. This also allows real estate professionals to adapt quickly to changes in the market, such as fluctuations in demand or shifts in consumer behavior.

Urban planning and development

City planners and developers use big data to design smarter, more sustainable urban environments. Big data provides useful analysis of population growth, the impact on the environment, traffic patterns and more, which aids in planning and development of urban areas.

Final Thoughts

In 2024, the real estate industry is embracing cutting-edge technology, transforming the way we buy, sell, and manage properties. From virtual reality tours to blockchain transactions, these innovations are making the market more dynamic, efficient, and accessible.

Virtual reality has revolutionized property showcases, construction projects, and agent training, while also introducing virtual real estate in the metaverse. AI is enhancing property searches, predictive analytics, 3-D modeling, property management, and security, helping the industry stay ahead of market trends and customer needs.

Online valuation tools have simplified property transactions, offering quick and accurate valuations that empower buyers, sellers, and agents to make informed decisions. Blockchain technology, with smart contracts and tokenization, is breaking down international barriers and boosting transaction security and transparency, making global investments easier and safer.

Big data and analytics are driving smarter decision-making, providing valuable market insights, improving customer experiences, enhancing risk management, and aiding in urban planning and development. These technologies are ensuring that real estate keeps up with the digital age, paving the way for growth and innovation.

As we look ahead, it’s clear that real estate will continue to evolve with these technological advancements. The future of real estate is bright, marked by ongoing tech progress and a new way of interacting with and investing in properties.