15 Disruptive Real Estate Technology Trends in 2024 (2024)

Being one of the last markets to embrace digitalization, the real estate industry is actively making up for it by following the most popular real estate technology trends.

The market changes, with new demographics being interested in housing, and their more tech-savvy needs introduced to the market. Sustainability has become a pinnacle of the modern real estate business, and more and more people are concerned about renewable energy. Legal compliance and modernization also hold a special place in the list of trends and innovations, as a prevalent constant. However, merged with this, on the cusp of a new age, blockchain, virtual reality, big data, and other innovative technologies emerge.

So, brace up as we dive into this whirl of innovation, trends, and efficient solutions.

Top 4 Real Estate Business Tech Trends in 2024

Every year, there are many assumptions about the real estate industry; some are justified, and some turn out to be false beliefs.

Some thought 2020 would be the real estate crash due to Covid-19. But there was only a slight decline in the market. Today, everything is gradually returning to normal. In 2024, we can see how this top sector is again alive.

What are the truest real estate tech trends we expect in 2024? Let’s find out in more detail.

Millennials and Gen-Z Are the Leading Commercial Buying Group

Nowadays, Millennials aren’t the only ones among the leaders among home buyers. In 2024, 55 to 74-year-old people lead the way forward. However, Millennials are an audience with very defined needs that seem easier to cater to, since over 96% of them are concerned about purchasing property, and their needs merge with the desires of their next in line – Gen-Zers that top at age 26 in 2024.

Millennials’ biggest concerns about purchasing a home

Source

Youths’ Real Estate Preferences

Embracing new ways of research: Nowadays, Millennials and Gen-Z use the Internet to research before hurrying up to buy a house or a flat.

According to the National Association of Realtors, here are some interesting real estate-related stats:

• 44% of new homeowners find information online first about buildings for sale
• 73% of buyers used mobile or tablet search devices for their purchases [in 2022].

Means of communication: Another real estate trend is the way of communication. As it turns out, most Millenials text to show interest in a certain property, to ask additional questions, and to book appointments. Phone calls are mostly reserved for urgent matters.

According to the above-mentioned NAR research, agents are embracing the demand for electronic communication: 90% of agents communicate via text, 94% use emails, and only 36% chat with clients via instant messaging.

Young people’s goals: Young people are eager to buy a home, however many changes it might take. A prevalent majority of Gen-Z and Millennials–95%–claim that it would take some major lifestyle changes to acquire their property. Hence, they are looking for a new job (27 to 39%), agree to move to a different city (20 to 25%), and even try their chances to win a lottery (52 to 57%).

Ways to attract the biggest real estate buying group

If you are planning to build a real estate website or some other proptech product, there are 3 core ways to attract the biggest buying group of the market:

Distinguish Popular Features: Besides having the necessary features, your product needs to have features that are currently in demand. This way you’ll be able to keep customers longer on your platform. The whole impression of your company will be more positive, which will needless to say with all the closed deals.

Here are the most appreciated features of a real estate website, according to the NAR 2019 report:

Improve Your Online Listings: Listings matter. It is the buyers’ first impression of their possible future home. That’s why it should be perfect.

Houses are in great demand, and not everyone can buy what they want, as only 38% of people under 35 are homeowners, and first-time buyers make up less than a third of the market. Therefore, in 2023, the process of hunting for dream homes is expected. Property platforms with agents are already on the way to looking for the perfect option for you.

Emphasize Benefits, Not the Size: Everyone who has ever bought or rented a property knows how some customers become obsessed with the property size.

Your website’s right decision is to focus all of the customers’ attention on the perks of a particular building and its location. Based on the NAR research, Millennials care more about the neighborhood they will be living in, not the size of their home.

New Business Models in the Real Estate Industry

To keep up with the new and forward-minded generation, modern real estate technology companies create more and more ways and models to satisfy their customers.

Amazon and the largest residential real estate brokerage company Realogy have teamed up to create a Turnkey solution for home buyers.

TurnKey is a buying program of Amazon and Realogy. In other words, by connecting a customer with a property agent, Turnkey enables a customer to have a voice in the matter of buying.

Moreover, after purchasing a house, Amazon helps turn it into a home by providing free technologies, like installing a TV and free intelligent products, all according to the sum a customer spends on the house.

iBuyer, is an example of a non-traditional business model in the real estate industry. It uses modern technology to make property selling and buying easier. You can do it using an automated valuation model. Since iBuyer’s first appearance, many customers have decided who to turn to first: real property agents or iBuyer. We’re waiting for that new platform with an automated buying and leasing experience.

Marketplaces are Becoming the ‘it’ of the Real Estate Industry

More and more marketplaces are invading the real estate market by introducing a new business model: a platform that is a middleman between buyers and sellers.

Marketplaces are disruptors for many incumbents: Airbnb threatens hotels, and WeWork threatens office management companies.

Another rental marketplace is Greater Vacation Rental, built from scratch by Sloboda Studio. It is a rental an online rental marketplace that allows users to book accommodations for vacations. Sloboda Studio has over 9 years of experience building marketplaces with a profound understanding of the business and technology aspects.

However, real estate marketplaces create a new segment in the industry. Above all, many of these marketplaces fall into the sharing economy – the solutions they offer are shareable with others.

The growth of online marketplaces represents a permanent change in how people shop. Global online marketplace sales are expected to hit $8.1 trillion by the end of 2024. With time people’s trust in marketplaces will be cemented and the majority of real estate purchases will occur online.

Examples: Zeus, AirBnB, WeWork.

PropTech is Taking Over the Real Estate Market

PropTech (Property Technology) uses information technology to help people research, sell, buy, or manage property.

With PropTech, real estate tech companies seek to add value to their business through technologies.

Alex Edds, director of innovation at JLL UK, says “On the face of it, Proptech is the digitalization of real estate, but beneath the surface, there is so much more to it than that.

At its core, PropTech addresses fundamental questions of how we experience and extract value from real estate.”

Emerging Trends in Real Estate Europe 2024 shows that 90% of real estate leaders believe that environmental, social, and governance will have the biggest impact on real estate by 2050. Around 95% also believe that marketing and leasing have one of the highest possible potential for AI usage. It shows that technology, especially informational technology, has all the means to change the industry.

The pandemic has made some adjustments and changed the priorities in the market. Previously lagging real estate assets, such as data and medical centers have become a priority. They’re gaining high demand in acquisitions and leases.

Top 15 Real Estate Technology Trends for 2024

Buying and Selling Websites

Online is becoming the main source of leads in the real estate industry. That is why there has been a mad rush to build a real estate website that helps agents and agencies in their work processes.

Forbes showed that customers’ first source in home searching and information finding is online websites. People also use popular social media platforms like Facebook and Instagram.

Besides using web information services, the National Association of Realtors is trying mobile devices for a number of different activities, including communication with their clients.

Leading real estate websites can offer much more than a single agent. With the below-mentioned web services, customers can find the best residential and commercial properties for sale and rent, either domestically or overseas.

Real Estate Management Software

Real estate management software makes it easier for property owners to manage their real estate and customers online.

Users need to have a lot of features in such management software:

• namely and reporting,
• accounting and planning tenant screening,
• automatic monitoring of insurance policy,
• other vital functions.

Real estate management software saves money and time. It’s going by utilizing the cognitive functions of an efficient computer program for management. This process goes instead of a human or humans.

Examples: Appfolio, Rentec Direct, TennantCloud, Yardi.

Virtual Reality

High-quality photos and 360° videos will not be enough for cutting-edge Millennials.

A 3D virtual tour is a great millennial-like feature for letting customers explore the property.

The technology real estate technology trend of using virtual reality is not a newsflash.

Zillow, an online real estate tech company, has used this feature for years. 2023 is the year when VR and AR (augmented reality) will enter the mass property market. It will be the truth since this real estate tech trend has become popular.

Digital Twins

With the increasing rate at which we generate data online, it can now be used to explore and study properties.

It is now possible to create a digital twin of a property using data from IoT and sensors. It provides a 3D digital model of a house with all its features. Such applications can help users predict how the building will hold up against environmental conditions. It can also help them understand the state of a building and fire evacuation plan.

Already, cities in the U.S. are rushing to build digital models of themselves to augment their planning and services. For example, Las Vegas unveiled a digital twin of its 4.3-square-mile downtown.

Property Value Estimation Using AI and ML Technologies

Statistical models, machine learning, and big data are used to evaluate property value.

ML algorithms are a great way to predict how much your business will get in commission after every closed deal. Pattern recognition used in ML helps define when a property becomes popular. All in all, these algorithms lead to better real estate deals.

Zillow has created a product called “Zestimate” that, with the help of ML, estimates home prices based on publicly available data.

Examples: Zillow

Real Estate CRM Software

A real estate CRM helps manage the real estate business. Namely, real estate CRM software helps to track emails and leads, manage contracts, and keep tabs on the progress made with possible leads.

The commercial real estate technology trend of using CRM for property websites isn’t new. Nevertheless, it’s expected to take a mighty step further in the real estate industry.

Blockchain

The predictions about how blockchain can change and revolutionize the industry are huge. 2024 is envisioned to finally adopt blockchain to bring security, clarity, and efficiency to real estate transactions. In 2024, the spending for blockchain solutions will peak at 19 billion USD. There are two ways in which blockchain would help the real estate industry:

Tokenization: It is the usage of cryptocurrency for dividing assets into tokens that will be stored on the blockchain. Tokenization in real estate changes a lot for different participants.

For example, it enables customers from different locations and different incomes to be a part of the investment process. Moreover, property owners can sell just a chunk of their property.

Smart contracting: These types of contracts are agreements that bring transactions between buyers and sellers together. Smart contracts speed up the process of verification, search for homes, and property acquisition.

Imbrex plans to launch smart contract-enabled transactions using its own cryptocurrency.

Examples: Imbrex.

Big Data

Real estate websites try to personalize the customers’ experience by suggesting properties based on previous choices. Big data will play an important part in real estate in the future. It allows the software to recommend more intelligent and personal searches.

Redfin, for example, uses the entire Amazon Web Services big data stack.

Examples: Trulia, Zillow, Redfin.

Mobile Apps

First of all, property websites need to be mobile-optimized. Google announced that it would be indexing and evaluating the mobile version of your website first. So, real estate mobile app development is now at the top of its popularity.

In conclusion, you should consider your target audience and choose what to make: a website or a mobile app. This data helps you to kill two birds with one stone.

In past years, besides having websites, many real estate companies launched their mobile software apps. That’s the perfect solution for people to use digital technologies for their property needs.

Examples: Zillow, Redfin, Trulia.

Real Estate Crowdfunding Platforms and Fractional Property Investment

Real estate crowdfunding platforms allow customers to fundraise small amounts of capital from multiple individuals. These platforms are an evolution of equity investment and allow people to become investors and customers. On the other hand, you can raise money from many investors. Crowdfunding offers companies access to capital they might never be able to raise

Fractional ownership is a method where multiple parties share ownership of a real estate asset, granting each participant proportional usage and responsibilities. Fractional ownership has grown in popularity, especially in vacation destinations and luxury property markets, as it offers more people access to high-end assets at a fraction of the cost. This approach is ideal for real estate investors who want to enjoy the perks of property ownership, especially in prime locations, without the full financial burden.

Drones and Other High-Tech Devices

One of the newest trends in real estate is using drones to collect high-quality aerial images, which provides a powerful and unique perspective when analyzing a property. Drones are used for all types of real estate listings, including apartments, residential homes, vacant land, resorts, and commercial properties.

The modern in-drone camera tech can capture video, multiple overhead map images, and 360-degree panoramas. This offers further details and transparency for potential customers.

IoT Smart Home Automation

Another rising star for 2024 and beyond is IoT smart home automation. This technology turns homes into interconnected hubs, where lights, temperature, and security can be managed with just a smartphone or a voice command. It’s not just about convenience; it also significantly raises a home’s market value.

Furthermore, smart homes contribute to environmental sustainability. IoT home solutions like smart thermostats and efficient lighting cut down energy use. As we move forward, smart home automation is shaping up to be a pivotal property technology trend, merging comfort, security, and eco-friendliness for today’s homebuyers.

Artificial Intelligence (AI) Personal Assistants and Conversational Chatbots

Nowadays, devices used in the PropTech industry produce large amounts of data. Using this data, AI can generate analysis to provide information on current trends, risk assessment, and a better understanding of the client’s needs.

Processing this amount of data manually can be very time-consuming. However, with the help of AI, PropTech companies can analyze large volumes of real-time data in no time to generate valuable insights.

AI is also providing customers with an impressive user experience. It has changed how people purchase and rent properties. This is because they can now view selections based on recommendations, browsing history, etc.

AI chatbots connect people who are selling, buying, or any other process to the clients 24/7. It processes their requests instantly. It augments team collaboration and increases the number of clients companies can service. AI chatbots even allow them to maintain building equipment more easily.

Advanced Analytics and Data Visualisation Software

It is becoming more difficult to filter information and understand what matters and what does not. However, visualization makes sifting through this information much faster and easier. Moreover, most people process information in a visual form much better than text.

Many business intelligence platforms have a data visualization feature, which is critical for advanced analytics. It helps businesses make sense of the enormous amount of data generated. Information is represented in a graphical form e.g. graph, bar or pie chart, etc.

Real Estate Marketing Automation to Improve Engagement

Almost every industry has adopted some sought of automation within their work process, and real estate is no different. Automation tools like chatbots and virtual assistants are trending now in the real estate industry. When integrated with websites, they can help automate answering frequently asked questions or being first responders. This helps to increase engagement and ensures that visitors stay on the site for longer.

Real estate marketing automation helps relieve agents of many repetitive tasks and keeps them involved in more important tasks.

Examples: RealtyMogul, Fundrise, CrowdStreet, Realcrowd, Groundfloor, Streitwise.

What Is the Most Popular Technology in the Real Estate Industry?

There isn’t only one popular technology in the real estate industry, as it varies based on specific needs and preferences. Technologies like VR, AR, AI, and property management software have gained significant traction and impact in enhancing the industry’s property search, marketing, and overall efficiency.

Our Experience

PropertyScheduler

Homepage for PropertyScheduler

PropertyScheduler is an online platform that was created for tenants and managers to monitor work order status. Our client’s main goal is to ensure that managing the properties and repair experts is a seamless process.

The client came to us with an already-built platform for personal use. However, he soon realized that repair managers in the United States needed an easy and reliable way to hire repair workers and manage orders. This led to the creation of the software called TheScheduler.

Our team’s goal was to add functionality to the software. We reviewed and updated the existing code and created a better scheduling system. Here are some of the features that we added and improved:

• Easy and comfortable registration function
• Scheduling
• SMS notifications
• Different automatic statutes for each project
• Financial reports
• Automatic payments
• Security

State of Real Estate Market and Business Predictions

Due to innovation and the adoption of new tech, the real estate industry is growing exponentially.

The growth has been further hastened by the COVID-19 pandemic. So, to understand how the market will change, experts are making different predictions.

Investments in the Real Estate Industry

The real estate market will become far more prominent and global. Many real estate companies aren’t ready to face the demanding environment. Nearly 60% claim that their firms lack data processing, seamless processes, and internal controls to meet compliance standards. All this goes to the fact that over 61% of these firms still rely on Legacy systems. This shows a high demand for new software for real estate regions, fresh startups, or companies ready to create solutions for brick-and-mortar institutions. This niche is open for explorations, thus the investors would be interested in funding more according to ideas.

The statistics of investments show a few branches that investors deem profitable within the real estate sector. More than a third of the respondents to the survey conducted by Deloitte claim that they would like to install or procure sustainable efforts and renewable energy. These could become a great indicator of where the investors would turn their eye in 2024 and 2025.

Leaders’ Considerations Regarding Sustainability Initiatives

Predictions for the Real Estate Industry

By the end of 2024, the global real estate market will grow to $637.80 trillion at a compound annual growth rate (CAGR) of 3.41% (2024-2028).

Naturally, in 2020, due to Covid, the market growth and development decreased by more than 2-3%. However, starting in 2021, active recruitment increased by as much as 8% per year. Now, the development of the industry is even more prompt, growing as fast as ever. In 2023, the homeownership rate in the US reached 65.8%.

Value of the Real Estate Industry

According to the Business Research Company, the real estate industry will reach nearly $5667.94 billion by 2028 with a CAGR of 7.1%. This is mostly driven by innovation and technological advancement. It provides people with knowledge that makes them confident in investing or buying properties.

New Features for Real Estate Tech Startups

The startups using AI and Big Data will likely receive more funding. They will be the ones who automate different segments of the real estate industry. Virtual tours will be highly in demand in the digital world. They will be integrated into both leasing and buying platforms.

There are lots of real estate companies that are already integrating technologies like VR into their business process. For example, Sotheby luxury real estate dealer provides a virtual walkthrough option for Android and iPhone users with VR headsets. To achieve this, cameras are placed throughout the building. Prospective buyers can now take virtual tours online to view the apartment.

Another startup pushing AR’s boundaries in real estate is Creative AVR. They have created an app called AResidence which can be used to recreate a lifelike experience of touring a house in any location.

Competition in the Real Estate Market

The real estate market is going to become even more competitive. There will be low mortgage rates and not enough properties for sale. The bidding war for properties will grow and drive a 6% price growth in the first six months. Later on, the demand and supply will stabilize and cool down to 3%.

In the US, home prices went up by 5.2% in 2023, November compared to the same time in 2022. Over 30% of homes were sold above the listing price. And, in all that, people are starting to prefer platforms and software to buy real estate; for example, 47% of homebuyers search online before choosing and contacting their agent.

Median Sale Price of Homes in the US

Influential Issues on the Real Estate Industry

Besides a possible lack of investments in the industry, there are some other issues that might influence the landscape of the market:

1. Economic issues:
   • job and income growth,
   • available qualified labor,
   • interest rates,
   • cost of capital and its availability.
2. Political issues: the political landscape and government budget issues.
3. Development issues: construction costs.

Conclusion

To recap, 4 leading real estate market trends will be happening in the industry in 2024:

1. Millennials and Gen-Z as the major buying groups

2. New business models in the real estate industry

3. Marketplaces are becoming the “it” of the real estate industry

4. Proptech is taking over the real estate market

Many experts say that without proper technological changes in the real estate industry, many companies can disappear.

So, it is crucial not only to know the current real estate technology trends but also to implement them in your business.

The real estate technology trends that will prevail in 2023 are

1. Buying and selling websites
2. Real estate management software
3. Virtual reality
4. Digital twins
5. Property value estimation
6. Real estate CRM software
7. Blockchain technology
8. Big data
9. Mobile apps
10. Real estate crowdfunding
11. Drones and other high-tech devices
12. IoT Smart Home Automation is a fast-growing real estate technology trend
13. Artificial intelligence (AI) personal assistants and conversational chatbots
14. Advanced analytics and data visualization software
15. Real estate marketing automation to improve engagement

Keeping up with and implementing real estate technology trends can be the push that propels you above your competitors. However, not every trend is necessary for your business, and some instead slow down growth.

Sloboda Studio has built and scaled real estate platforms for over 6 years. So, contact us to help analyze the trends that are necessary for your business and implement them.