Construction Industry News
The recent venture of Apple and Meta into the virtual world has reinvigorated talks around augmented reality (AR) and virtual reality (VR). The global market of AR & VR is projected to reach $1,110 billion by 2030, growing at a CAGR of 50%. This technological advancement unlocks tremendous potential in no other sector as much as in real estate.
As per a KPMG report, the adoption of AR & VR in the sector will witness a projected CAGR of 30% from 2021 to 2026. The prevalent application of AR & VR, the key reason for its growing adoption, has been in real estate marketing. There are fundamental challenges in real estate marketing around limitations in showcasing properties effectively and engaging potential buyers. These are-
limited accessibility,
visualisation difficulties,
time constraints,
engagement and attention,
miscommunication, and
geographical barriers.
Overcoming these challenges has been key to successful marketing and greater client satisfaction in real estate. The journey from potential buyers to proud owners should be one of clarity, effective communication, and honesty. This is made possible now by leveraging the immersive and interactive capabilities of AR & VR, providing more engaging and impactful experiences for buyers and sellers alike, which is why AR & VR are now called the disruptors of real estate. By harnessing the power of VR, high-resolution 3D imaging, and IoT, alongside the capabilities of AR, real estate professionals can revolutionise their marketing strategies.
There is a difference between AR and VR- AR is a digital overlay of the physical world, whereas VR is a completely simulated environment. However, for the sake of simplicity, we may coalesce both concepts under VR in this article.
Virtual experience for real conversion
As a seller in the real estate market, you need every edge you can get. So imagine property listings that come alive. Consider a study commissioned by Google back in 2015. It found that listings with virtual tours were almost 200% more effective, and almost 70% of the people surveyed wanted more businesses to provide virtual experience options. And today, VR has come a long way in making more realistic experiences even more accessible.
All businesses can overcome the problem of accessibility, as multiple clients, regardless of time and location, can remotely visit the virtual replicas of the property. It empowers the sellers to highlight the properties’ features effectively. You can curate the experience of visiting the property according to your clients, boosting engagement and attention without spending extensive time and money on staging.
These tours remove geographical barriers, increasing the reach of your business whether your client is in a different city, state, or country. The rural market, often plagued by this problem, can finally shine with VR.
These are some of the most obvious applications of VR, oriented towards the client end. However, here’s the real kicker: VR provides valuable data for real estate marketing. Businesses can know exactly what piques a buyer’s interest during a virtual tour. This real-time insight empowers you to tailor your marketing strategy and target the right audience. Imagine conducting immersive surveys and analysing user behaviour within a virtual environment for a deeper understanding of buyer preferences, allowing agents to make data-driven decisions and optimise their strategies. VR even allows agents to train in properties virtually, improving objection-handling skills and practising negotiation techniques, in a risk-free environment. This translates to better-prepared agents who can close deals faster and deliver exceptional service.
Confidence for the buyers
What makes VR such an effective tool in real estate marketing is its ability to provide interactive tours, even before projects start getting built. Investing in real estate and buying property is an expensive venture, and even a shred of doubt can deter buyers. So, when VR teleports users into a simulated environment, it enables them to explore properties and personalise their view, fostering a deeper connection with the property. And nowadays, even with just smartphones, users can interact with objects and examine details at their own pace, enhancing their engagement and understanding of the space.
And this technology is now more accessible and effective than ever before. With advancements in IoT, controllers, and motion sensors, the VR experience has become more dynamic and interactive, allowing you to examine minute details, change lighting and temperature, or even simulate the presence of people. You can change furniture, adjust styles, and experiment with interior designs and potential renovations.
This experience provides greater clarity and assurance to the buyers and reduces the chances of misunderstanding. Clients can better communicate their concerns, and the sellers can alleviate their concerns with ease, saving time and effort and fostering confidence. All the stakeholders can communicate and interact within the environment itself so that all are on the same page, reducing loss of time, effort, and cost. This raises the standard of customer experience and takes client satisfaction to the next level. Sellers that have incorporated VR into their marketing have enhanced their brand reputation, and even without any transaction, they have successfully created a strong relationship with the clients.
Data-driven future
The future of real estate hinges on data as its cornerstone, with AI emerging as a game-changer in that pursuit. It provides a personalised approach that ensures clients receive the timely and right information, optimising efficiency for businesses and enhancing the likelihood of successful transactions. Platforms powered by AI offer sophisticated search functionalities, enabling users to precisely identify properties, as intelligent recommendation engines learn user preferences over time, suggesting ever-more relevant listings. Coupled with VR, AI empowers real estate professionals to make informed decisions on investments, pricing, and marketing strategies, leading to a future where data-driven insights drive growth in the real estate industry.
