Posted On : 10th August, 2021 by Mit Shah
Owing to the current ongoing pandemic of COVID-19 and the resulting lockdown, potential buyers are stuck at home and the way to move outside from home, which has vastly affected the relationship between buyer-seller in all business domains.
But, this turning situation has needed both the demand and supply sides to adapt to the best and newer ways to look at the real estate sector. The current crisis has also forced stakeholders, vendors, and business owners to increase the use of technology and other digital platforms to improve sales in this sector.
Undoubtedly real estate developers are facing a very challenging situation and working around it to attract buyers, mainly using tech-based solutions in the current situation.
Indeed lockdown has vastly impacted the site visits and physical communication with real estate developers; real estate businesses are investing massive amounts in digital platforms incorporating the modern ways to provide the physical experience of the property and book that online with comfort at home.
Online booking platforms, drone shoots, and virtual tours are getting more attention and prominence due to the increasing number of online buyers.
Real estate and the AR/VR market
According to the research from Goldman Sachs, Augmented Reality (AR) and Virtual Reality (VR) are expected to be an $80 billion market by 2025. VR is expected to generate $2.6 billion by 2025 alone in the real estate market. In the same year, more than 1,25,000 real estate agents will utilize VR to showcase homes to buyers with annual spending of $5,000, and it will grow yearly by 10%.
Start-ups and well-established companies are eagerly adopting immersive technologies to support their businesses and make them durable during the current crisis. Additionally, the real estate sector will be one of the biggest recipients of VR-like technologies such as virtual showcases, virtual property tours, 3D- designs of interiors, exteriors, and engineering visualization.
One of the core benefits of VR technology is it ensures virtual co-locations of teams. When there is no space for physical meetings to ensure the primary messages, immersive technologies make it easy to transfer our best work cultures and project designs into the virtual world, to retain efficiency and reliability.
All such benefits are related to the lockdown period: up to 2/3 of all real estate projects suffer from cost and time overruns due to several issues like communication gaps, and it has become a big challenge for the realtors. It is also a painful condition for all architects and designers – the gap between on-paper and end-product designs.
One of the simple reasons for this gap is the incompetence of clients to observe space and designs from the 2D media of renderings and drawings, and rapid iterations to meet their expectations become a highly chargeable toll for the industry resources.
Benefits of immersive technologies
Immersive technologies can play a significant role in making the real estate sector more powerful and profitable. – by empowering virtual tours, empowering the stakeholders to make better decisions, offering a global reach, saving time and money through a modern transformative way of feeling, experiencing, reviewing, and updating projects even before the development phases.
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Convenience
It is predicted that buyers want the technology to look at homes by own in the current situation. While agents need the technology to showcase their projects to buyers and generating demand on both sides.
Here VR-like immersive technology offers a more immersive and real-life experience without the time commitment and inconvenience of physically visiting the real estate properties for customers looking to purchase.
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Feedback
The VR-like immersive technology captures and records the specific areas of property where buyers, spent their most of time. Also, it can offer more valuable feedback to realtors about user preferences.
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Confidence
Virtual visits to homes could boost up the buying process by enhancing the confidence of potential home buyers. Virtual visits enable buyers to experience the property and make quick decisions if it fits with the requirements.
The confidence that comes from immersive technology is vital to customers, as indicated by the Forbes survey. The survey shows that 77% of all home buyers affirmed that virtual tours play a vital role in making quick buying decisions.
Take Away
In the future, the use of intelligent, sophisticated, and immersive technologies will play a significant role in driving more sales and potential buyers to real estate developers. Innovations and virtual technologies create more possibilities, improve customer experience, offer worldwide reach, save money, and bring more efficiency for the real estate sector.
