How Real Estate is Going Digital: Examples, Cases and Numbers

Online listing platforms

One of the most significant changes that the Internet age has brought is the ability to make purchases online. However, in the early 2000s, online real estate listings were still relatively uncommon, although other online platforms already existed that enabled consumer-to-consumer and business-to-consumer sales. Fortunately, this landscape has evolved significantly.

Today, digital real estate businesses can use these online portals to list properties and provide comprehensive information and photos for each listing. Potential buyers or investors now have a wide range of options available to them. They can access detailed property descriptions and photos to make an informed investment decision.

The advent of online real estate portals has revolutionized the home search process by allowing individuals to search for properties for sale and retrieve relevant information from the comfort of their home or office via their computer or mobile device.

In addition, websites such as Lamudi and MyProperty have played a significant role in increasing interest in properties beyond major metropolitan areas and in less prominent locations. Besides, online listing platforms like Zillow, Redfin and Realtor.com have made it easier for homeowners to sell their homes while matching potential buyers with their dream properties. As a software development company, 111Minutes helps companies build online listing platforms tailored to their goals and needs.

Data Analytics

Digital real estate business analysis is an important process for evaluating the potential return on a property. In the past, agents performed this analysis manually. However, to succeed in today's competitive landscape, companies need to analyze their competitors and customer behavior. By using specialized tools, they can assess a property's potential and streamline various management tasks.

Software solutions such as Buildium, Dealcheck and RealNex are specifically designed for real estate analysis. These tools allow brokers to accurately assess the condition of properties both before and after the sale.

Buildium, for example, is scalable software that caters to the needs of both small and large businesses. It offers built-in accounting tools to identify and record payments, process fees, handle refunds and track deposits. The solution also automates various business processes to increase efficiency and productivity.

AI-Based Chatbots

A real estate chatbot serves as a virtual assistant that can handle inquiries about buying, selling and renting properties. It efficiently answers questions about the process, provides information about ongoing sales or purchases, schedules appointments and even collects contact data from online leads.

Surprisingly, chatbot adoption in this industry is still relatively low. In Brazil, for example, only 1% of chatbots have been developed specifically for digital real estate businesses. Similarly, in Italy, only 8% of customers expressed interest in using virtual assistants to handle their real estate queries. Nevertheless, their use is expected to grow significantly: A tenfold increase is predicted between 2020 and 2030, with an average annual growth rate of 25.7%.

As with any new technology, consumers are still getting used to conversational bots, and the evolution toward full adoption varies from industry to industry. Still, it's important to recognize the many benefits of chatbots. Rather than viewing them as potential risks, it makes more sense to view this software as an opportunity. In fact, in many cases, chatbots can generate an impressive return on investment (ROI) of over 1000%.

Real Estate Crowdfunding

Crowdfunding provides a way to raise capital specifically for real estate projects. It brings together individual investors who contribute small amounts of money in properties.

Platforms like Crowdbase have made it incredibly convenient for individuals to discover and invest in exciting real estate projects without having to worry about the size of their investment, property maintenance or tenant management. Crowdfunding has democratized more opportunities in the sector and opened up the possibility for a wide range of investors to participate in lucrative projects.

The global real estate crowdfunding market saw significant growth, reaching $10.78 billion in 2021, and it's forecast to reach $250.6 billion by 2030. This software has become a game changer, enabling small businesses and investors to tap into a broader market despite limited funds.

Virtual tours and 3D walkthroughs

A 3D virtual tour is an interactive model of a property, allowing potential customers to explore the space from anywhere. It provides a "walkthrough" experience online that captures the reality of the built environment. Viewers can effortlessly navigate the 3D space by looking up, down and sideways, just as they would in real life. Transitions between points on the tour are seamless, creating a realistic experience. At 111Minutes, we craft platforms for posting and viewing 3D virtual tours to help our clients attract more customers and open up new revenue streams. 

Compared to 360 virtual tours, 3D tours offer a higher degree of realism. They're called "reality capture" because they closely mimic real-world conditions. High quality and lifelike virtual property tours can effectively replace in-person tours. For digital real estate businesses, this brings several advantages:

Digital property management systems

According to Grand View Research, the property management software market reached $2.9 billion in 2020 and is expected to grow at a CAGR of 4.8% from 2021 to 2028. There is an increasing demand for software-as-a-service (SaaS) property management solutions, which are expected to reach $1,823.92 million by 2028. Some of the key players in the market include AppFolio, Entrata and Yardi Systems.

Modern real estate management software leverages CRM technology to enhance the connection between property managers and tenants. This enables agents to provide excellent customer service and build long-term business relationships. Key features of property management software include trust accounting, maintenance scheduling, inspection reporting, vacancy listings, tenant communication and analytical reporting.

WeWork

Founded in 2010, WeWork revolutionized the real estate and coworking industry by embracing digitization. Traditional office setups required significant investment in rent, furniture and infrastructure. However, WeWork recognized the changing needs of professionals and leveraged technology to create a shared workspace revolution.

With a seamless online platform, WeWork offers flexible office solutions for freelancers, startups and large companies. On the digital platform, users can easily search for and book workspaces. The result? WeWork has become the world's leading coworking provider, attracting millions of members. In 2022, WeWork had 800 locations in more than 150 cities worldwide with around 600,000 members.

Opendoor

Opendoor, founded in 2014, has turned the market on its head with the innovative approach to buying and selling homes due to real estate digital transformation. The traditional process involved multiple agents, lengthy negotiations and uncertainties. Opendoor recognized the opportunity to streamline this process using technology.

Through its digital platform, Opendoor offers homeowners a convenient and hassle-free way to sell their properties. Sellers can request an offer online, and the company uses advanced algorithms and market data to determine a fair price. This approach eliminates the need for traditional real estate agents and shortens transaction times. By 2021, Opendoor expanded its services to more than 40 markets across the United States and processed more than 100,000 transactions.

Fundrise

Fundrise was established in 2010 with the goal of democratizing real estate investment by leveraging digitization. In the past, investment was only accessible to a privileged few with large capital. Fundrise saw the untapped potential of opening up this asset class to the masses.

Through Fundrise's online platform, individuals can invest in real estate projects with as little as $500. Using technology, the company gathers capital from individual investors and channels it into diversified real estate portfolios. Sponsors can track the performance of their funds in real time through the platform. Since its inception, Fundrise has attracted a large community of investors and facilitated over $4 billion in investments.