How AR VR Technology is Reshaping the Real Estate Market Landscape
According to a recent report by AllTheResearch, the global AR VR in the real estate market ecosystem is estimated to reach USD 1,151.9 million in 2023. AR & VR in the real estate landscape has the potential to transform the overall property market. This is especially observed with the recent developments that are made in terms of developing consumer-level technology. AR/VR in real estate acts as a powerful tool. This is because AR/VR in this landscape creates compelling experiences for buyers. And most importantly it allows real estate owners/professionals to showcase properties and homes digitally from anywhere around the world.
According to research from Goldman Sachs, virtual reality (VR) in the real estate market alone could generate as much as USD 2.6 billion by 2025. Factors that make customers invest largely in the Real Estate industry include the increasing Foreign Direct Investments, progressive demand, and attractive business opportunities. The consumers start looking to invest in real estate by quick benchmarking, detailed browsing, followed by numerous physical site visits to make a buying decision.
In one of the recent surveys, it was found that 95 percent of home buyers use their smartphones to look for homes. And, 54 percent of the buyers say that they use the internet and search for property selling websites, which is the first step taken during the home buying process. Therefore, this shows how consumer behavior is radically adapting to evolving technology. Also, its immersive use cases, which have taken a disruptive form in the last couple of years. As a result, the consumer doesn’t make a buying decision in more iterations, rather he/she makes lesser physical visits to the property site.
Therefore, AR/VR is making abounding contributions to the real estate industry, and these contributions are gaining a spotlight owing to the COVID-19 pandemic, which proves that digital intervention is crucial to market sustenance and resilience in unpredictable times.
Let us see how some of the top use cases of AR VR immersive technology in the real estate sector are persuading builders to become digitally aware smart sellers:
AR-based apps in Interior designing
Augmented Reality is not only used in gaming apps but AR-based mobile apps can help in visualizing the positioning of furniture, home decor, and other settings in a home. What is more attractive about using AR-based apps in interior designing is that they can be programmed to inculcate virtual styling capabilities in real-time physical spaces. And these persuade buyers to make a confident and faster decision. For instance, an iOS app – a 720-degree Virtual tour creator helps in building your virtual showroom in seconds. It limits the expensive and time-consuming trial and error staging area to a virtual environment. Here the user is allowed to easily create and try out different styles and designs before selecting the actual ones that would perfectly fit a particular home.
Repository of information related to real-estate projects
AR-based apps in the real estate landscape can be built and used as a repository of relevant information related to real estate projects that include pricing, space, and carpet area covered, etc. While these apps can facilitate users in collecting a significant amount of information regarding the buildings by merely scanning the building or space on the App, they can also be used to transform the drive or walk-through neighborhoods into insightful real-estate virtual tours. This will help the buyers to interact with the environment around the area they want to buy.
Scanning and locating commercial properties
AR-based apps can also be highly useful in scanning the commercial properties which are close to the area that the buyer is willing to buy. They can also access listing details such as the information of available offices, amenities, tenancies that are located inside the buildings, etc. The AR-based app for builders can also be integrated with a design virtualization system. And, can have an interface for communicating with the marketing agents and be implemented even while the project is still in progress. One of the organizations that are into building intelligent solutions for data-driven organizations built an AR-based property discovery app. This app provided a real-time 3D view of the properties on sale along with their interior architectural views, floor plans, etc. In addition to it, the brochures were also equipped with 3D models of the images and these were accessible using the camera scan in the app. As a result, it not only led to a 30 percent increase in the client’s revenue.
Digitization – driving the next wave of growth in the Indian real estate sector
According to developers and property consultants, the second wave of the covid pandemic has augmented the digital up-gradation of India’s real-estate sector. The developers are trying different methods in order to attract customers it is not possible to visit the sites in-person owing to the current lockdown.
Right from VR/3D enabled site visits, chatbot-assisted inquiries, and research, online bookings to digital transactions, tech-enabled solutions are continuing to dominate the trends in shaping up the evolving scenarios.
“Behavioural and technological developments have altered the industry from being a purely physical asset to a digitally acting one. Tech tools like virtual walkthroughs, 3-D mapping, drone surveys were deployed years ago, but only on select projects. The pandemic has altered that truth, and these specialized tools have now become de facto standard practices,” said Karan Kumar, CMO, DLF Ltd.
Since 2020, a larger number of real estate dealings are happening remotely, through the use of the internet. In the current situation, customers prefer digital and remote human engagement over in-person interactions.
“Wellbeing and precaution is one reason, but over and above, the digital integration across the real estate value chain has also made it easier for consumers to seek information, experience spaces, make bookings digitally. We are also seeing a rising adoption of proptech, which has already sparked a technological movement and has the potential to bring an additional level of transparency in the market, much needed for the growth of the real estate industry in India,” said Karan Kumar.
Owing to lockdown restrictions in place, in-person property tours have come to an indefinite halt and this has resulted in a proliferation of virtual tours that are powered by AR & VR-based technologies, 3D renderings, etc., which has decreased the number of site visits.
“Digitisation is driving the next wave of growth in the Indian real estate sector. Developers have taken the virtual route for interaction with homebuyers and stakeholders for closing the sales loop,” said Ashok Kapur, Chairman, Krishna Group & Krisumi Corporation.
Amidst the focus on customer-centricity, developers are relying on next-generation technologies that include AR, VR, in order to ensure a superior customer experience and boost operational efficiency.