As the world continues to cope with the aftermath of one of its deepest recessions, a few industries have received so severe a blow that getting back on their feet seems like an improbable task. The real estate industry was no exception. Property managers were left scrambling to close deals or even meet customers – especially when the second wave stirred up a storm of lockdowns and other restrictions. But with unpredictable challenges came unexpected opportunities. It soon became clear that the real estate companies, which began thriving, were willing to adapt through digital transformation.
Today, the real estate market is breaking free of the pandemic shackles and witnessing a boom worldwide. A report by Fortune Business Insights on “Property Management Market, 2021-2028” found that the property management market size in the US alone is set to reach $6.16 billion between 2021 to 2028. In addition, a survey by KPMG Global PropTech Survey also revealed that “97% of respondents think that digital and technological innovation will impact their businesses.”
But the industry is also in a state of paradox. On the one side, job losses, evictions, and work-from-home policies are causing mass deurbanization. It led to an unexpectedly high volume of people leaving their prime properties in cities in favor of affordable single homes in the suburbs. On the other side, real estate companies remain one of the slowest markets to adopt complete digitization. It’s why PropTech is yet to peak in digital maturity.
However, technology modernization can add immense value to the property management value chain.
Top 5 property management trends in 2022
Cloud-first technologies have become integral to the real estate industry, especially for property owners, tenants, and buyers. They are powered by AI/ML, automation, blockchain, and data analytics, to create simplified user-centric experiences. The most popular is the ability to provide a 360-degree property view in the virtual world – facilitating anytime, anywhere accessibility.
There’s no shortage of innovation for real estate companies to adopt PropTech initiatives that have disrupted the real estate market. The key is to understand the major trends currently causing the disruption.
The fact remains that real estate customers will no longer tolerate delayed or broken engagement journeys. Hence, the need for automation is immediate. From managing lease agreements and contracts to processing invoices –many complex workflows are likely to cause customer dissatisfaction and operational inefficiency.
Hyper-automation ensures that end-to-end workflows can be seamlessly managed without requiring human intervention. It also speeds up the collection of property or customer data – freeing real estate managers from mind-numbing tasks. Considering the amount of unstructured information, it helps transform raw data into insights to personalize customer engagement, achieve more TAT for key processes, etc.
2) Artificial Intelligence (AI)
Before technology made inroads into the real estate industry, searching for an ideal property to buy included manual processes for data collection, calculating costs and interest rates on spreadsheets. Today, ML algorithms help real estate managers feed high volumes of data and receive output in seconds leading to more informed decisions. For example, AI can also provide reliable market forecasts that enable them to increase the profitability of their decisions.
It also offers accurate estimates about the prices for buying and renting housing in different city areas. This can be tremendously useful for businesses considering the long-term lease of office space. Real estate marketing and AI-enabled solutions go hand-in-glove too – from personalizing campaigns to using chatbots or voice assistants for engaging customers.
Blockchain technology has made some of the traditional real estate operational challenges a thing of the past. It enables real estate managers to get a unified view of their operations on cloud-based property management systems. Blockchain is also changing the way funds can be invested in property. It ensures that all transactions are verified in a compliant manner and streamlines the process of fractional investments.
Furthermore, blockchain offers swift and secure processing of transactions without middlemen. You can create digital smart contracts, gather e-signatures, and store them in a single source of truth. Payments received virtually, and even complex transactions, take only a few minutes.
4) Augmented Reality (AR) & VR (Virtual Reality)
AR & VR technologies have become competitive differentiators in the premium real estate industry. In the recent past, their adoption has been on the rise – with a study by Goldman and Sachs revealing that the VR market for real estate may generate up to $2.6 billion by 2025. The potential buyer would only need a mobile device and a VR headset to go on a virtual tour or see the 3D architectural plans of an unbuilt property. AR interfaces also help customers better understand real estate properties before getting in touch with an agent.
3D virtual tours with digital-twin technology draw prospective buyers and help save time and money. Just as importantly, they reduce the need to make an in-person visit to double-check the premises. For instance, a 3D view can show a more realistic condition of the property.
Last year, when Facebook brought to life their metaverse – it quickly became clear what it could do for the global marketplace by reimagining how virtual property owners tactically promote. Metaverse real estate platforms could feature commercial buildings/stores/showrooms, etc., with technologies like blockchain, cryptocurrency, and NFTs to enable business interactions. Metaverse real estate agents are also attracting the eyes of investors as potentially key players in the virtual property management space.
Other property management trends include:
- Smart buildings with digital locks, controlled lights, and automatic temperature control
- Smart self-service web portals for payments, agreement reviews, document uploads, etc
- Autonomous capabilities with a deeper application of AI, ML & NLP to create self-sustaining property management systems
- Sentiment analytics that measures tenant behavior to finetune decision-making
- Faster AR/VR/video content streaming with 5G-enabled mobile connectivity
As earlier indicated, the digital property management mindset is yet to become fully mature. But it’s well on the way to becoming the new norm. So, property managers face a “now or never” situation, in which lagging behind in technology adoption is out of the question.
Aspire Systems is a global technology services firm serving as a trusted technology partner for our customers. We work with some of the world’s most innovative enterprises and independent software vendors, helping them leverage technology and outsourcing in our specific areas of expertise. Our services include Product Engineering, Enterprise Solutions, Independent Testing Services and IT Infrastructure Support services. Our core philosophy of “Attention. Always.” communicates our belief in lavishing care and attention on our customers and employees. Aspire Systems, An Oracle Partner has built iEstate, a SaaS, Proptech solutions for Real Estate, Retail, Banking & Telecom industry sector on the Oracle cloud platform. It helps lease management firms business process, property developers, real estate companies and so on. To learn more about Aspire Systems iEstate visit: https://www.aspiresys.com/real-estate-property-management-erp-software/ or more information, write to [email protected]