How Augmented Reality is Transforming the Real Estate Industry
Augmented reality has changed the real estate landscape, driving competition and fostering engagement. Read here to learn what's next for buyers and sellers.
For decades, the process of purchasing a property remained relatively unchanged. With the help of real estate agents, buyers traveled from property to property to find the one that best fits their needs and budget. This process typically lasts several weeks or months, and buyers look at an average of 12 properties before making a decision.
Advancements in technology have drastically changed the entire process, saving time and money for buyers and sellers alike. Now, investors and businesses have new opportunities to not only use technology to find the right physical space for their company but to have a digital presence as well. One such technology is augmented reality.
In this article, we’ll talk about augmented reality and its role in the transformation of the real estate sector.
What Is Augmented Reality?
Augmented Reality (AR) is a technology that seamlessly overlays computer-generated images on the user's view of the real world, creating a composite view. Once a novelty for gamers, it's become a mainstay among a variety of applications. Companies increasingly use it to create engagement, solve challenges, and better serve their customers. For example, a common pain point among online shoppers is the inability to see how effectively an item meets their needs prior to making the purchase. To address this issue, many companies use augmented reality to enable customers to virtually try on outfits or see how a piece of furniture looks in their space.
The Role of Augmented Reality in Real Estate
Prior to augmented reality taking hold in the world of real estate, buyers had to visit properties in person. Not only did this take time, but in some cases, it was costly for those seeking to buy property in another state or country. Especially in a hot real estate market, time and money constraints can keep buyers from the property of their dreams.
Now, thanks to augmented reality, buyers can visit a property in 3-D from their home or office. Without setting foot on the physical location, they can rule out a property that doesn't fit their needs, determine whether it warrants an in-person look, or even gather enough information to make an offer.
The Different Ways Augmented Reality is Used in Real Estate
When used effectively, augmented reality can save resources for both the buyer and the real estate agent. Depending on a business' needs, this technology can also provide valuable client feedback, insight into new construction, and budget-friendly staging. Here are some ways AR benefits real estate.
1. Virtual Showings
With the support of augmented reality, agents can provide buyers with immersive virtual walkthroughs. This gives buyers the experience of being in a place without leaving their homes.
Staging, or furnishing a space to show its functionality and scale, has a proven track record of boosting sales. However, it's expensive and labor-intensive, making it prohibitive particularly for small companies and independent agents. With augmented reality, agents can superimpose digital pieces of furniture into a space, helping buyers envision its potential.
3. Architectural Mockups
Time is money in the world of real estate, and it's not always feasible for agents to wait until new construction is complete before they begin the sales process. Through augmented reality, agents and buyers can visualize a space, even if it's still in the planning phase.
Augmented Reality and Virtual Real Estate
The same technology that's made virtual showings a possibility has also begun to pave the way for a new kind of real estate opportunity一the virtual kind. Today, property buyers are no longer limited to physical properties, they can also acquire plots of virtual real estate in the Metaverse. This exciting advancement brings new opportunities to investors, real estate agents and businesses.
What Is Virtual Real Estate?
Simply put, virtual real estate is a digital property that exists in a virtual world. Property can take on various forms, but in general, it mirrors physical parcels of land and buildings. Like conventional real estate, virtual properties can be bought, flipped, leased, sold, and developed. In SuperWorld, for example, the virtual world mapped on top of the real world.
Virtual real estate is swiftly transitioning from a gamer's playground to an opportunity for businesses and entrepreneurs. Owning virtual property offers a unique way for them to get their message out to a wider audience.
The way augmented reality is used in virtual real estate is very similar to how it's used in traditional real estate, in that it allows users to experience a property digitally. A user may purchase a piece of land in the Metaverse and create whatever they want on it. They can build a house, a digital art gallery, or an event center that they can rent out to other users.
A business, on the other hand, may use its digital property to showcase its products. Acura, for example, has a digital showroom where it showcases upcoming vehicle lines. Estee Lauder uses its presence in the Metaverse to sell NFTs to avatar users. The possibilities are endless.
The Future of Augmented Reality in Real Estate
Augmented reality is making dramatic changes in the real estate sector, engaging buyers in unique ways, offering unparalleled convenience, and providing a tailored experience that's revolutionized the way people purchase a property. As businesses continue to find innovative ways to use this budding technology, we can expect augmented reality to fuel the popularity of digital properties and fast-track the sales of regular real estate.
For entrepreneurs and businesses seeking to expand their reach to the Metaverse, SuperWorld offers unparalleled opportunities for engagement. To learn more about how augmented reality can transform how you buy and sell real estate, or for more information on virtual real estate, contact us today.