With the acceleration of digitalization in the real estate sector, online technologies began to gain weight in rentals and sales. While 89 percent of buyers conduct their rental and purchase research online, 86 percent inquire about housing prices online. TSKB Real Estate Appraisal İzmir Branch Special Projects Department, which has carried out a study that reveals the prediction that many transactions will continue to be completed without going through the physical tour, with the spread of the virtual tour, stated that many technological developments, especially PropTech, have started to dominate the sector, and that companies and people who cannot adapt to digitalization are in the workforce and business. indicated a decrease in volume.
With the developing technology in the changing world conditions, issues such as digitalization, artificial intelligence and automation have come to the fore in the real estate sector. TSKB Real Estate Appraisal İzmir Branch Special Projects Department conducted an analysis showing that with the increase in virtual tours in housing purchases, rentals and sales started to take place faster, and revealed that this situation reduces the workforce of real estate consultants.
According to the study, which predicts that many transactions will continue to be completed without going through the physical tour with the spread of the virtual tour, it is stated that 89 percent of the buyers who rent and buy real estate do the research online, and 86 percent research the housing prices online. Technological developments in the real estate sector are expected to cause a decrease in the workforce, while companies that cannot adapt to the practices are expected to cause a decrease in their business volumes.
“Proptech applications aiming at innovation in the sector are increasing”
According to the study, which stated that one of the most prominent digital developments in the real estate sector is the increase in Proptech applications, “This concept, which aims innovation in the real estate sector, emerged in New York in 2014 and has increased its prevalence today due to the pandemic. It is thought that the areas where technological developments will be used most intensively in the next 5 years will be big data and data analytics. Proptech technologies transform the real estate industry in 3 main areas; smart real estate, the sharing economy, and real estate fintech. Smart real estate not only facilitates the operation and management of real estate, but also accelerates access to data for the region where the real estate is located. The sharing economy allows real estate to be used by different people at different times. Smart real estate offers the opportunity to produce long-term solutions for the supply-demand balance experienced in the sector in different periods and to present the right data quickly and easily in future-oriented balance policies. It is planned to use smart real estate technologies to create new stocks by comparing supply-demand data and to determine the location selection according to population densities.”
“Real estate fintech will provide real estate purchase from all over the world”
Pointing out that the real estate fintech concept offers convenience and different options for real estate purchase financially, the study said, “Real estate fintech is expected to offer real estate purchase services from all over the world with different digital currencies such as bitcoin. Real estate fintech reduces the number of automated personnel in banks, enables technology employees to enter financial institutions, and transforms bank branches. These developments provide convenience in key areas such as building management, customer experience, data security and privacy, performance efficiency, sales and rentals in the real estate sector. Proptech applications started to be used in areas such as advertisement portals, customer relationship management, real estate sales and rental, 360 degree virtual tour, valuation services, financial services, office management services, subscription and tax debt transactions, online title services, 3D printing and construction. One of the most important reflections of technological developments in real estate is seen in shopping centers and new mixed projects to be developed. Mixed project and shopping center investors can make their investments in this direction by closely monitoring vehicle pedestrian traffic, demographic data analysis of the region, project development costs and land rents with technology.”
“Deed transactions are expected to be carried out online”
Emphasizing that one of the areas where technology is most needed in the real estate sector, the study emphasizes that title deed purchase and sale transactions are carried out, according to the remarkable research and predictions of the study, “It is planned that the deed purchase and sale transactions can be carried out from outside the city and outside the country. With the pandemic period, all transactions began to be carried out online, except for the signing phase in real estate purchase and sale. It is aimed that the signing phase will be moved to the online system and the title deed transactions will be carried out completely online. In parallel with the acceleration of Proptech applications with the pandemic, criticism is also increasing. It is observed that the criticisms are on the two most prominent issues. The first of these is that the dense data network created is exposed to cyber attacks, and the second is that the stakeholders who cannot use technological services effectively cannot keep up with the times and are left out of the real estate sector. Similar criticisms were made against the industry, agriculture and finance sectors in the period when technology gained momentum, but measures were developed for this. With the measures developed, the use of technology applications has accelerated by providing data security and qualified stakeholders to the sector.”