Informational technologies in Real Estate: AR & VR trends
Technology, VR / AR22 August 2019
Innovation through new technology is an impact that is driving the 4th Industrial Revolution. It transforms almost all the sectors including Real Estate industry. Being traditionally more in-person transaction-based, this area has been changed by technological advances greatly. Today’s story will present you up-to-date market trends and implementations of informational technologies in Real Estate and Architecture.
Real Estate market trends in 2019
In general, the global Real Estate market will be affected by two main events:
- U.S. President taxes changes
2019 was greatly impacted by taxes changes implemented by U.S. President Donald Trump. He applied tariffs to a wide range of imports, like aluminum, steel, handbags. Being long-time trading partners and allies, China, Canada, Mexico, and the EU were all affected. These regressive taxes negatively affected property markets around the globe as well. Sales are slowing down by the fact that many buyers around the world have less disposable income in 2019.
- Brexit Day
Brexit Day is the day that the UK will leave the European Union. It’s scheduled for October 31, 2019. According to Capital Economics, this could cause commercial real estate prices to plummet by as much as 47%. The outlook for residential prices isn’t much rosier – the market is down 15% year-over-year, with an additional drop of 7.5% expected over the next 18 months.
Check the following video to get an overview of global Real Estate market prospects:
As for the American market specifically, we can highlight the following trends:
1. The need for affordability is increasing
One of the American dream milestones has long been homeownership. But today a third of millennials live at home or as a cohort. Young Americans spend a greater share of their income on rent compared to the previous generations.
This leads to looking for tech-based solutions to create affordable housing. This is shown in making existing homes more affordable and in reducing the costs of building new homes.
2. Community search
More than half of Americans feel lonely. So people are looking for a company while choosing a home. 24/7 connectivity enables us to work anywhere and anytime. Longer work hours make community harder to build organically. So millennials are placing value on employers who facilitate it for them. On the demand for community, everything is changing: how we travel, how we work, and how we leave. Co-working companies offer events aimed at building connections. Home rental companies include community-building shared experiences.
3. Life flexibility
Young people tend to change jobs frequently. When you don’t know how long your job will last, you don’t want to be burdened with long-term lease commitments or furniture. It’s expensive in both buying and moving. So companies offer furniture rentals for those who need flexibility in their living environments.
Technologies in Architecture and Real Estate
We can apply different technologies to burst the Architecture and Real Estate industries.
Augmented Reality Usage in Real Estate and Architecture
Talking about AR in Real Estate, this technology is applicable in three different ways:
- information overlay of real-life objects;
- digital objects creation;
- enhancements of a real-life object.
Read also: VR patents and AR patents: What’s new?
Here are some examples of AR solutions for the industry:
1. Visualization of Architecture mockup
When an architect designs a building, he comes across a need to present a project in front of a client. An old style of such meeting included something like an old school presentation and a real model of the building. However, the AR presentation is what adds some magic to show a project. Besides this helps to:
- save hundreds of hours in creating a real model of the building;
- show the future building layer-by-layer with easily.
Some examples of AR in architecture:
2. Construction assistant
AR is used in the construction industry to visualize the elements that are usually hidden. For example, the exact plan of city electricity and sewage pipes plan
3. Apartment rent or sell
Nowadays, any company in the rental market has to develop an AR application for real estate. This is probably the only progress of the industry for the last 10 years. AR helps to rent or buy an apartment by marking the exact spot of the apartment or house while you are near for certain neighborhood.
Virtual Reality Usage in Real Estate and Architecture
Now, let us show you how VR in Real Estate can change regular processes. Most common uses of technology are:
1. Property showcases
Virtual tours for Real Estate Agents and helps them reach out to potential clients.
An empty property with no or very few pieces of furniture is not the best way to present to a customer. Now imagine exactly the same house or apartment but full of furniture and looking cozy and appealing.
3. Architecture visualization
VR offers effective solutions to show a property that isn’t constructed yet. It allows potential homebuyers to carefully check out both the exterior and interior.
Here are some examples of VR in architecture:
According to Goldman Sachs Group report, technologies will change Real Estate business. 1.4 million registered real estate agents are using VR for prospective clients leading to an aggregated Real Estate commissions market of $107 billion. For 2020, the report estimates 130k Real Estate agents to show properties using VR. Additionally, VR and AR markets in the industry will reach $80 billion by 2025.
Seems to be the highest time to develop an AR application for Real Estate or use VR technology for sales.l.sidorenko