How Virtual-Reality Tech is Revolutionizing the Real Estate Industry

Introduction

In today's digital landscape, businesses across various industries are leveraging emerging technologies to enhance their operations. One such technology is virtual reality (VR), which has gained significant traction in recent years. The VR industry is projected to grow at a compound annual growth rate of 27.5% through 2030, with an estimated worth of nearly $60 billion. While VR has made a significant impact in gaming and entertainment, it has also disrupted the real estate industry. Realtors are now offering VR home tours to clients, allowing them to explore properties remotely. In this article, we will explore how VR technology is helping real estate agents and homebuyers save time and close deals.

The Rise of VR in Real Estate

According to research from Goldman Sachs, approximately 130,000 real estate agents used VR to show homes in 2020. Virtual tours became instrumental in keeping the real estate market alive during COVID-19 restrictions. While virtual tours may not have had a lasting impact on home sales, they have been proven to boost the value of listings in certain areas and help homebuyers screen for their preferences. Aspiring homeowners can now explore properties without being limited to physical visits, and realtors can expand their reach to a larger pool of potential buyers.

Using VR to Save Time on Homebuying

James Bowerman, a real estate agent at Real Creative Group of Compass, has embraced VR technology to enhance the house-hunting experience for his clients. By utilizing a product from Matterport, Bowerman can provide virtual tours of his listings. Matterport's 3D-data platform captures 360-degree scans using compatible cameras and stitches them together to create immersive virtual tours. Potential homebuyers can "enter VR" and explore the virtual space online, making the decision-making process faster and more convenient. This technology is particularly useful in states like Maryland, where the "coming soon" label allows virtual tours to be shared before physical tours are permitted. Bowerman has received multiple offers from clients who made decisions based solely on the virtual tour.

VR's Impact on Real Estate Developers

VR technology is not only beneficial for homebuyers but also for real estate developers. Companies like Yupix, a Miami-based real estate tech startup, have used VR to reduce the time properties spend on the market. Yupix utilizes headsets and Unreal Engine, a tool for creating 3D photoreal visuals, to create immersive home tours. The technology allows potential buyers to virtually visit properties that are still under development, providing an opportunity to identify and address any potential issues or design flaws before construction. This not only saves time but also helps developers save money by avoiding costly modifications or changes during the construction phase.

The Future of Real Estate with Proptech

While VR technology has made significant strides in the real estate industry, there is still room for improvement. Bowerman acknowledges that VR can't fully replace in-person home tours due to limitations in quality, speed, and accessibility. Additionally, some industry professionals are resistant to embracing this tech-driven change. However, VR and other emerging technologies are part of the future of real estate. According to Patricio Navarro, the CEO of Yupix, proptech (property technology) is gaining momentum and there will be no turning back. As the industry continues to evolve, real estate professionals and developers will need to adapt to these new tools and skills to stay competitive in the ever-evolving digital landscape.

Conclusion

Virtual reality technology is revolutionizing the real estate industry by providing immersive home tours and saving time for both real estate agents and homebuyers. With VR, potential buyers can explore properties remotely, expanding the reach of realtors and enabling faster decision-making. Real estate developers can also benefit from VR by reducing time on the market and identifying potential design flaws early in the development process. While there are still challenges to overcome and improvements to be made, VR and proptech are shaping the future of real estate. Embracing these technologies will be crucial for real estate professionals to stay competitive in today's digital world.

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By: insider@insider.com (Ngozi Nwanji)
Title: How Virtual-Reality Tech is Revolutionizing the Real Estate Industry
Sourced From: www.businessinsider.com/how-virtual-reality-tech-tours-help-real-estate-agents-homebuyers-2023-12
Published Date: Thu, 14 Dec 2023 20:04:34 +0000