If you are in real estate and you plan to secure up your own offer to beat the competitors, then first and foremost it is essential to know where the market is heading. Digital transformation is an obvious buzzword this year but what exactly it means for the real estate world still remains a mystery for many small businesses. Well, let’s look at the trends and existing solutions to define the exact steps a company needs to make on the way to digitalization of business.
Digitalization strategy for real estate in 2021
In two words, ‘digital first’ is the primary trend for real estate digital transformation in Singapore for the next year. When social distancing regulations are in place and the COVID-19 statistics peak, more and more real estate clients prefer virtual over personal property tours. With the implementation of 3D technology, drone footage, and advanced filming techniques within the industry, the digitalization of business goes even faster around the world. Residents prefer suburbs to city centers, and the aerial visualization of their prospective living conditions also becomes a natural part of the real estate routine. Websites now have to be adjusted to all kinds of devices since more than half of all the traffic worldwide comes from mobile devices, not desktops or laptops. In fact, real estate now needs to be at a tap’s distance for everyone: residential buyers, commercial leaseholders, and industrial tenants. This all started long ago, boosted this year, and will go on in 2021.
Now let’s take a look at the particular examples of digital transformation innovation in different aspects of the real estate business.
Digital transformation: real-life examples
The examples below will highlight the aspects of the industry change and the reasons for such a transition.
78% of employers know that telecommuting and a flexible working schedule are among the top ways to retain a good employee and a perfect option to save more than $11,000 per employee in a year. With this in mind, the demand for the old-school offices with cubicles is changing, and so should do the real estate offer. Today, the industry must walk away from the traditional offerings and the outdated working model since digital transformation is changing the world as it is.
Real estate needs to anticipate the change in demand and ensure that adjustments and flexibility are possible. For example, if a company decides to go remote forever or adopt the hot-desks approach, the office space would need reshaping, and the real estate needs to offer this change right away. Furthermore, it will also need a fast change in the contract conditions, considering that the tenants would probably need to change the occupied space.
This might seem a nightmare at first glance, but the truth is, digital transformation technologies allow real estate to keep up. Companies turn to software and cloud solutions for greater efficiency: to manage their estate faster and to amend contracts on the go. The possibility to employ a digital solution for remote contract signing or spatial reshaping can save providers a lot of time on travel and meetings, freeing more time for actual changes and management. Commercial real estate is now changing its shape following the SaaS in tech and it starts offering Real-Estate-as-a-Service where clients pay only for the services they use.
Digital transformation in Singapore led to higher demand for smaller production spaces with greater tech advancements. Companies all over the world bring back their manufacturing part of the business to be closer to the market and take greater control over product development. For real estate, this means rethinking the current and future spaces. Most companies do not need spaces for many workers because a couple of people today can control and run a completely automated factory. As a result, smaller space and, again, greater flexibility in terms of layout, floor plans, elevators, etc. is a must for real estate’s menu. When such digitalization of business steps in, real estate has to be ready with the new technologies and good-old solutions, such as more reliable wires and pipes or a specialized software solution to monitor the building all together.
The new trend in residential real estate is a smart home. This is a house of interconnected devices and home appliances that can be managed and monitored with an app or software. By 2023, the number of smart homes is expected to surpass the 300 million mark. Such an approach of tenants and home buyers pushes the real estate industry to redefine its digitalization strategy for the upcoming years. Now the construction of any new residential building should begin with the idea of smart home and the possibility to connect all home elements in an app. It means the usage of the new kitchen appliances, alarm systems, heating elements, and even electric sensors to satisfy the growing market need.
Besides that, the renting part of the real estate market has drastically changed due to the digitalization of business. Now people search for all rental opportunities online, book their homes via apps, and most even forget about the possibility of a regular call. Estate agents now have to be even faster and smarter when it comes to residential rentals. This tendency also greatly impacts digital marketing strategy of real estate since now it turns to social media websites rather than random paid ads on the web considering that COVID-19 changed the way people interact online pushing everyone to social media platforms.
Real estate marketing
The amount of data daily produced by tenants all over the world is enormous, and it constitutes the notion of big data. Digital transformation happening throughout industries allows us to connection all this data into meaningful statistics that can help real estate experts with development. For instance, AI and statistics can be implemented to analyze information about real estate purchase in a particular region; a special app can collect feedback on customer service of a company; digital transformation technologies can also connect data from social media in order to create a comprehensive portrait of a potential buyer or tenant for a district, city, or even country. Furthermore, market experts can also use big data in order to predict the upcoming trends in real estate, for instance, in interior design to furniture the new investment opportunities for greater interest. The pool of possibilities with such information is literally bottomless.
How to begin a successful digitalization of business in real estate?
Digitalization of the good old processes is a perfect beginning for a new real estate startup. For example, people have been renting their homes, apartments, and rooms for a long time, but it was AirBnB idea to bring the experience to a new level and allow people from different countries to share the experience. If you are planning to revolutionize the world of real estate, here are a few steps for a successful digital transformation innovation strategy.
- Outline your stakeholders.
- Identify the problem you want to solve with the new solution.
- Build a user journey for stakeholders who need to resolve a particular problem.
- Plan whether it will be a web, mobile, or hybrid solution.
- Develop a prototype and test it.
- Polish the prototype for a better experience.
Of course, this is a high-level plan for digital transformation of any company related to real estate. However, it perfectly outlines the step-by-step process any company can follow to reach the goal.
The bottom line
Digital transformation is encompassing all industries of the world not leaving real estate behind. Today, only companies with a strong vision of the future and effective implementation of new technologies stand a chance of surviving the pandemic and raising it to the next level.