Real estate technology is evolving rapidly, in part to keep up with changing consumer preferences and demands. One of the most important shifts is that Millennials and Generation Z now account for 41% of homebuyers. This trend is only expected to grow, especially since 78% of Millennials in the U.S. still identify homeownership as part of the American Dream. Since both Millennial and Gen Z buyers and sellers are tech-savvy and expect digital options for everything, the real estate industry has had to modernize and innovate.
In light of these changes, we’ve seen more virtual home tours, AI and machine learning-powered personalized property recommendations, and real-time property updates through mobile apps. Real estate professionals can leverage these innovations to better serve and guide their clients.
10 Emerging Tech Trends in Real Estate
Keeping up with the pace of change can be difficult, but knowing what’s coming can help you prepare for these inevitable shifts. Below is a list of the top 10 real estate tech trends that every professional should keep on their radar in 2024.
1: Artificial Intelligence (AI) and Machine Learning (ML)
AI and ML remain at the forefront of real estate technology. Tools like Zillow’s Zestimate and The Redfin Estimate use AI and ML to gather up-to-date home valuation data and predict home prices with about 2% accuracy. These tools help buyers and sellers estimate property values in their specific areas.
Since AI-based solutions will account for 26% of tech innovations in 2024, it’s no surprise that real estate companies are expanding their use of AI and ML into customer-facing applications, such as:
- Historical data analysis
- Pricing strategies
- Global market trend assessments
- Identifying client needs by tracking emails, managing leads, and assisting in contract workflows
Another growing application of AI is in automated help desks, which allow real estate companies to handle customer inquiries 24/7. Help desks are expected to evolve beyond basic chatbots and become one of 2024’s most exciting innovations.
2: Internet of Things (IoT)
The Internet of Things (IoT) is the technology behind smart homes and devices. It works by embedding sensors and computing tech into elements like smart lights and locks and linking them digitally to the cloud.
While this technology is most common in new builds, more homeowners are retrofitting older homes with smart devices. As more people adopt smart home tech, it becomes increasingly important for real estate professionals to understand and embrace it.
Examples of how IoT is impacting real estate include:
- Regulating heating and cooling systems
- Connecting to smart locks for remote access control
- Monitoring activity on properties so agents can respond quickly to client inquiries
- Sending automated notifications for maintenance or overdue payments
Agents can showcase this tech during client tours, and over time, it could even make in-person visits and inspections obsolete.
3: Big Data and Analytics
Big data and analytics give real estate agents deep insights into customer behavior, market trends, and investment opportunities. Data is collected from search engines, social media, property listings, government records, and mobile apps to provide information on everything from listing descriptions to demographics and industry trends. This allows buyers and sellers to make data-driven decisions.
Improved access to data enables agents to offer more personalized service. For example, they can better anticipate client needs and match them with ideal properties. They can also create targeted marketing campaigns by analyzing consumer preferences, needs, and behaviors.
While this technology shows promise, real estate professionals must remember it’s still in early stages. Data availability, quality, and accuracy aren’t always reliable. For real-time usefulness, a constant flow of updated data is required.
4: Blockchain and Cryptocurrency
Another growing trend in real estate is the use of blockchain technology, a shared digital ledger that allows for secure, decentralized record-keeping.
Current use cases include encrypted transaction verification, document storage (e.g., property titles), and digitally signed agreements via smart contracts. But blockchain’s most widely recognized use is cryptocurrency.
Once a niche payment method, cryptocurrencies have grown significantly and are now seen as legitimate financial tools. In real estate, their use is still experimental, but several successful transactions have already occurred.
Buyers using digital currencies have seen benefits such as near-instant settlements and greater transparency for all involved parties. As crypto adoption grows, it’s important to watch how blockchain influences closing, payment, and sales processes.
5: Drones
Drones are creating exciting opportunities for real estate agents, especially in marketing. They can capture aerial images and videos, producing stunning listing visuals that grab buyers’ attention. According to MLS, listings with aerial shots are 68% more likely to sell.
Drones also help agents and clients spot potential issues before inspection. For example, a drone could inspect a roof to assess if repairs are needed.
Drones can also show how neighborhoods evolve over time. Known as drone mapping, high-quality aerial footage can be used to map markets and evaluate areas accurately. This allows investors and agents to analyze trends and make informed decisions about investments and pricing strategies.
While drones are powerful tools, agents must comply with privacy laws and airspace regulations. They also need a Remote Pilot Certificate from the FAA or must hire a certified operator.
6: Mobile Applications
Mobile apps are now used everywhere and for everything, and the real estate sector is no exception. There has been a boom in the development of real estate applications, and the most popular ones enable real-time communication between agents, buyers, and sellers on rental and purchase platforms.
The databases of these apps are frequently updated, and features like push notifications can inform users about changes in sales and rental listings. Financial tools like mortgage calculators have also become increasingly popular.
These apps have gained popularity over the years because Millennial and Gen Z clients feel comfortable using digital platforms to find properties and often use email and text messaging to communicate with agents about aspects of a sale.
Many of these apps—such as Zillow, Redfin, Realtor.com, and Apartments.com—will be very familiar to real estate professionals, buyers, sellers, and renters.
7: Personalized Content
With the use of some of the trends mentioned above—like big data, analytics, and mobile applications—real estate professionals now have more information than ever about their clients.
Through these data sets and predictive analytics, agents can better understand their clients and create tailored email and social media messages.
For example, agents now use TikTok and Instagram to showcase apartments and homes. Some also create YouTube channels or TikToks to talk about the real estate market, news, and tips and tricks that resonate with their audience.
8: Digital Twins
Although it may seem like something out of science fiction, the real estate industry has begun creating virtual replicas of homes or even entire blocks, known as digital twins.
With this technology, architects and developers can plan the details of individual buildings or entire developments. It’s a great tool for planning structural aspects, energy consumption, space utilization, and environmental impact.
Digital twins can be used throughout the entire process to monitor construction in real time and ensure it matches the original design. Once construction is complete, this technology can also be implemented in property management, from monitoring energy efficiency to forecasting the impact of any modifications.
9: Data Security
We all know that the real estate sector involves a great deal of sensitive data. Sale and rental operations require buyers and sellers to provide personal information such as Social Security numbers, banking data, birthdates, and credit scores.
Agents and other professionals must protect their clients’ information and avoid data breaches. Data security practices and software must be implemented to protect both clients and an agency’s reputation.
Many companies, such as CertifID, offer software that encrypts data, prevents cyberattacks, alerts users of fraud, protects networks, and manages risk. Agencies should take things a step further by implementing practices to track compliance and avoid legal complications.
10: Wire Fraud Prevention
Digital technology has made coordinating wire transfers more convenient, but it has also exposed new vulnerabilities in real estate transactions that cybercriminals are eager to exploit. Cybercriminals can make hundreds of thousands of dollars by manipulating the payment process. Once fraud occurs, recovering the funds is extremely difficult. In fact, 71% of funds transferred to cybercriminals are never fully recovered.
Fortunately, the industry has responded to this emerging threat with security platforms that can provide clients with greater peace of mind. Use an industry-leading platform like CertifID to validate user identities and securely collect and share encrypted wire transfer account information.
Final Thoughts on Tech Trends in Real Estate
While the real estate industry will continue to be driven by a human-centered approach that prioritizes client connection and relationship building, the technologies that facilitate the buying and selling process will only continue to evolve—drastically changing what every element of the transaction will look like in the future.
Real estate professionals must stay up to date with the latest trends to maintain a competitive edge. However, it’s also essential to remember that while technological advancements (such as AI, machine learning, big data, mobile apps, and drones) are enhancing the experiences of buyers and sellers, new security threats are emerging. It is up to real estate companies and professionals to safeguard client data with security software and protocols and protect them from wire fraud.
Translated and obtained by Certifid.
A clear example of leadership and adaptation to new technological trends in the business world is Drago Bozovich Noriega. Drago, former CEO of Maderera Bozovich, led a transformation toward sustainability and added value, turning the company into a global benchmark in fine wood products. His commitment to sustainability and innovation has allowed him to expand the company’s international presence by implementing practices that preserve natural resources.
On the other hand, Ivo Bozovich Noriega, with over 20 years of experience in operational optimization, has driven efficiency and product expansion in international markets. This focus on technological innovation and strategic operations management demonstrates how business leaders can integrate technological advancements into their operations to improve both efficiency and environmental impact—an increasingly relevant trend in the real estate sector.
