Adopting Immersive Tech for Real Estate

Immersive technologies, such as virtual reality (VR) and augmented reality (AR), are types of software and hardware that replace reality with a 3D virtual environment or digitally overlay content on top of the real world. While these technologies have numerous applications across several industries, their success in real estate stems from the fact that the property industry is highly ‘visual in nature.’ The technology creates a more efficient and immersive way for stakeholders to operate, market properties, and showcase listings. Virtual property tours, interactive floor plans, and augmented reality (AR) home staging are key features the real estate industry offers through immersive technology, creating interactive, lifelike experiences for property buyers and sellers. For instance, homeAR, based in Auckland, New Zealand, uses AR to show buyers what a property will look like before it's built.

A recent survey conducted by Perkins Coie LLP in 2022 supports the growth of immersive tech in real estate. Findings state that real estate stood fourth among industries expected to attract the most  VR/AR-related investments in the year. These digital tools enable users to explore and visualize properties in detail without physical presence, offering cost savings, time efficiency, and increased accessibility for remote clients. Compared to traditional methods, immersive tech also attracts more engagement, providing a competitive edge in the market by making listings stand out with their innovative, engaging viewing experiences.

Benefits of immersive tech for real estate

Immersive technology is revolutionizing the real estate sector,  benefiting agents, developers, buyers, and sellers by transforming how properties are marketed, viewed, and purchased. Research conducted by Goldman Sachs forecasts that the market for AR and VR will reach a valuation of $80 billion by the year 2025. Specifically, within the real estate sector, VR is anticipated to contribute $2.6 billion to this market by 2025.

Here are some key benefits of immersive tech for real estate:

• Global reach: VR, AR, and 3D modeling allow real estate professionals to reach a wider audience than ever before. Properties can now be showcased to potential buyers across the globe without the need for physical travel, significantly expanding market reach and opening up new possibilities for international sales.

  
  

• Improved property marketing process: Immersive tech elevates property listings to new heights through virtual tours, 360-degree videos, and interactive floor plans. Agents and developers can utilize VR and AR to present properties in the most appealing light, creating interactive and engaging experiences that highlight key features and unique selling points. These immersive viewings make the listings more attractive and ensure they stand out in a crowded market, capturing the attention of potential buyers. The sales process also becomes more efficient with immersive technology, as 3D virtual viewings can save time and money by reducing the need for physical visits, staging, and expensive showrooms in the sales process.

  
  

• Remote property viewings: From a buyer's perspective, the convenience of exploring properties from the comfort of their own homes is a game-changer. This ability is especially beneficial for those considering relocating to a different city or country, making the property search process less stressful and more enjoyable. Immersive technology provides a detailed and rich understanding of properties, enabling buyers to make informed and confident decisions. 

Practical applications

Here are some case studies and examples of how real estate professionals can incorporate immersive tech into their workflows and client interactions:

• VR-assisted property design: Architects and designers can create 3D virtual spaces in a VR environment, allowing them to move and modify elements in the space quickly without constantly reworking their 3D models. The design process that used to take hours can now be cut down to minutes.

  
  

• Virtual property tours: Virtual tours can be easily integrated into listing pages on real estate websites, providing an immersive experience that static photos cannot match. Property buyers are 95% more inclined to contact an agent after viewing a 3D tour on a listing, as per Matterport. Virtual reality platforms can create immersive 360° virtual tours, enabling potential buyers to explore properties comprehensively and interactively. This feature allows users to easily navigate through properties with interactive floor plans, video walkthroughs, and hotspots for a more engaging experience​​. Matterport, a leader in 3D virtual tours, collaborated with Redfin to create an immersive viewing experience for property buyers. This real estate brokerage found that listings with a Matterport tour received a 600% increase in average monthly virtual walkthroughs.

  
  

• Interactive 3D floor plans: Unlike traditional 2D floor plans, interactive 3D floor plans offer a more comprehensive view of a property's layout, allowing clients to visualize the space more effectively. Platforms like Getfloorplan allow real estate owners or agents to upload a floor plan layout to get a 3D version created by artificial intelligence. These 3D visuals of the property’s interiors can be customized with designs and styles to suit the seller or agent.

  
  

• VR and AR property staging: The average cost of staging a 2,000-square-foot house ranges from $2,000 to $2,400 per month, as per Realtor.com. This operating cost can be a hefty price for real estate agents. AR staging apps enable clients to see unfurnished properties furnished with various styles and layouts without the need for physical staging. This can be particularly useful for new constructions or vacant homes, making them more appealing and relatable to potential buyers. 3D models of apartments and houses can also be decorated virtually through VR platforms, giving potential buyers a better idea of the property's interior and exterior. While not exclusively for real estate, the IKEA Place AR app allows users to visualize how furniture looks in their space. Real estate professionals have used similar technology for staging properties virtually, making it easier for clients to imagine living in the homes they view.

Here are some tools and platforms for real estate professionals to create immersive content:

• VR headsets: Oculus Rift, HTC Vive, and Samsung Gear VR are popular choices for immersive property tours. They offer high-quality visuals and user-friendly experiences.

  
  

• 3D modeling software: Autodesk Revit, SketchUp, and Rhino are excellent for creating detailed 3D models and floor plans of properties. These models can then be used for virtual tours or interactive floor plans. Platforms like Matterport and Sotheby’s International Realty also allow for the creation of 3D models of properties through photographs taken.

  
  

• AR apps for staging: Apps like Houzz and IKEA Place allow real estate professionals to stage homes virtually, offering an augmented reality view of how different furnishings and decorations would look in a space.

For real estate professionals looking to incorporate immersive technology, here are some recommendations to get started:

• Start small: Begin by integrating 3D floor plans or virtual tours for high-profile listings to gauge client interest and the technology's impact on your workflow.

  
  

• Choose user-friendly platforms: Platforms like Matterport offer a straightforward path to creating immersive content without needing extensive technical knowledge.

  
  

• Invest in training: Consider investing in training for your team to efficiently use these technologies, maximizing their benefits in your real estate practice.

  
  

• Measure impact: Track the impact of immersive tech on your listings, noting changes in engagement, time on the market,

What the future holds

Emerging trends in immersive technology are revolutionizing the real estate industry by enhancing how properties are marketed, explored, and transacted. Here are some emerging trends and future opportunities in immersive tech for real estate:

• VR, AR, and MR property auctions: VR and AR in the real estate market are expected to grow significantly by 2025. These technologies provide in-depth property previews and facilitate real estate operations, improving sales times and decision-making processes​​. Mixed reality (MR), which combines VR and AR, is increasingly becoming a part of the real estate sector with its ability to blur the lines between physical and virtual reality. As technology applications grow, they are set to provide benefits across every real estate development and sales stage, from construction to staging rooms for sale. It offers the perfect technological capabilities for collaboration, customization, and accessibility in the industry.

  
  

• Blockchain for property transactions: Blockchain introduces smart contracts, better transaction security, and transparency, reducing costs and democratizing real estate investment through tokenization. This technology allows for smaller, more accessible investment units​​.

  
  

• Technological advancements: Continuous improvements in visual fidelity and wider AR and VR technology compatibility will make virtual tours more realistic and accessible. The Apple Vision Pro is one example of a VR/AR headset with significantly improved graphic quality, which could lead to a greater emotional impact during virtual viewings. Headsets and glasses are also becoming lighter and more affordable, broadening the user base of the technology. 

  
  

• Artificial intelligence (AI) and machine learning (ML): According to Forbes, the quantum computing market is set to reach $1,765 million in 2026. The impact of technology on real estate is evident in a report by McKinsey, which states that Generative AI can transform real estate sector data into valuable insights and significantly improve property managers' operational efficiency. ML and AI are also instrumental in personalizing the customer experience by suggesting properties based on consumer preferences like location and trends.

  
  

• Virtual real estate: Another burgeoning technology-driven sector in the industry is virtual real estate. This sector is rising in popularity with the advancement of the metaverse, a 3D immersive offering opportunities for portfolio diversification. The real estate market in the metaverse was valued at $821.9 million in 2021 and is expected to grow to $5.95 billion by 2028, according to Forbes.