The Digital Age

The Digital Age is Here

The introduction of digital transformation and technology in the real estate industry, commonly referred to as ‘proptech’, has led to the occurrence of revolutionary disruption and innovation. Proptech, or property technology, refers to a set of tools and platforms that optimise and streamline the ways in which properties are bought, sold, viewed, researched and marketed. Although experiencing an initial delay, the industry is now actively embracing digitalisation, and its capabilities to increase revenue, while reducing costs. Proptech investments in virtual reality, artificial intelligence, CRM tools and mobile applications have been popular trends in recent years.

According to a 2021 report by the National Association of Realtors (NAR), 97% of home buyers used the internet to search for homes. The dramatic shift is highlighted when contrasted with the fact that, in 1981, 22% of home buyers read newspaper ads to find a home and 8% percent relied on word-of-mouth as an information source. As a result of an internet home search, potential buyers were able to walk through the interior of the home, while also browsing the exterior and various location features.

As younger generations start looking towards buying property, it is important that the industry adapts to their behaviour in order to maintain a healthy real estate market. According to the Institute of Business Management, approximately 74% of Gen Zers spend their free time online, meaning that there is an expansive opportunity for Proptech to capitalise upon the power of technology to appeal to such a demographic.

The real estate market amongst Gen Z can be summarised through a few key statistics:

• 43% expect to purchase property within five years, while 45%, are saving for a house (realtor.com, 2021)
• 72% want to buy a house in the future (realtor.com, 2021)
• Younger buyers are more inclined to purchase investment properties, with 14% saying they had bought a home as a fix-and-flip or rental property, compared with 7% of Gen X buyers and 3% of baby boomers (ServiceLink, 2022)
• 23% said they would buy a house without seeing it in person first, demonstrating the reliance upon technology, such as virtual reality tours (ServiceLink, 2022)
• Gen Z and Millennials buyers represented the largest share of home buyers in 2021, accounting for 39% of all purchase (NAR, 2021)

Hence, as the younger generation begins to take over the real estate market, it is important that the industry embraces the opportunities of digital transformation to capitalise upon the demand within the demographic.

At DragonVR, we hope to make our impact on the digital age within the real estate industry. To reflect the younger generations’ increasing reliance on the Internet, DragonVR was established to provide developers, real estate agents and project marketers with affordable, interactive, virtual reality walkthroughs. Through our services, potential buyers are able to view all the visual and physical elements of homes from any device and any location they desire. To discover how you can improve buyer engagement, increase revenue and save on resources, get in touch with the team today!