Real Estate’s Tech Revolution in 2024: 7 Industry Shapers and Shakers

As real estate buyers and sellers worldwide have embraced a higher-for-longer interest rate environment, industry leaders are also coming to grips with diverse preferences by location and sector. Investment managers say that demographic change, digitalization, and decarbonization (or a low-carbon economy) fuel this new direction.

The rise of logistics centers amid eCommerce demand, various residential housing types (e.g., student accommodation and senior living), and alternative property use cases (such as energy infrastructure and data centers) are proof of the fresh dynamics operating within the sector.

How can managed property management software providers and users ride the wave of this evolving landscape? This article discusses top property technologies to watch in 2024.

Top 7 PropTech Revolution in 2024

Buildium’s “2024 Property Management Industry Report” shows property management firms plan to expand their portfolios in the next two years by diversifying the property types they manage (33%) and exploring new geographic territories (26%). Amid rising expenses, 48% want to boost their revenues by adopting technology to improve efficiency. Their other plans include imposing higher rates/client-paid fees (38%) and offering additional services (40%) such as cleaning services.

These new ideas result in fresh challenges that real estate asset management software seeks to ease. Read on to discover seven leading revolutions and how PropTech provides the sector with tools to navigate them.

1. Customized managed property management software

PropTech software development involves creating solutions tailored to your specific operational needs and existing systems and workflows. For example, seller and property management platforms can create and manage client databases and comparative property listings, process transactions, and schedule maintenance calls. Rental property management software can handle lease applications/renewals and payment collections. Meanwhile, buyer-related real estate software development apps can generate personalized recommendations based on one’s preferences and location.

2. Big data and AI

Big data analytics can identify opportunities (for investors and sellers) and risks (for tenants). Its findings are useful for demand forecasting, tenant screening, customer segmentation, and predictive maintenance of equipment and systems.

For example, big data indicates the propensity of Gen Z and millennials toward short-term rentals. These age groups typically travel with friends and prefer making bookings near tourist spots. Meanwhile, Gen X and baby boomers seek longer stays and focus on privacy and comfort. Property managers can use managed property management software to acquire such segmentation data. By doing so, they can adjust their offers and marketing based on demographic preferences.

Moreover, AI accurately processes historical market, sales, and operations data to spot trends, set a property’s best valuation, and forecast property prices. For instance, data analysis from rental property management software has prompted managers to think of flexible payment terms (like instant payment solutions) to stay competitive against brand-new housing units with modern built-in amenities.

You can also be more efficient with time and resources without adding human resources by using real estate asset management software powered by big data and AI. In particular, AI-driven chatbots can answer general inquiries, manage property viewing or repair service scheduling, and send payment reminders. According to AppFolio’s 2024 Property Manager Benchmark Report, 44% of property managers using AI harness it for resident communication.

3. Cybersecurity

Managed property management software with virtual agreement and payment functions has cybersecurity features to safeguard customer and business information. These two “cyber-secure” systems are enjoying wide adoption in the property sector:

• E-signatures

eSigning offers the convenience of signing documents from anywhere. Two-factor authentication, encryption, and audit trails protect them from tampering and forgery. Turnaround time is also shorter because you skip the manual printing, signing, and, in some cases, mailing.  

• Blockchain

Some parties execute blockchain-powered smart contracts, automatically running refunds, transfers, renewals, or cancellations when conditions meet specific criteria. In the future, this technology will automate property searches, pricing adjustments based on market conditions, financial evaluations, rent and penalty fee collection, and underwriting processes.

4. Aggregation platforms and crowdfunding

Property “aggregators” are apps/websites that collect information from various online channels so investors and homebuyers can view and analyze data conveniently. Real estate asset management software serving as an aggregator enables users to buy mortgages at a discounted rate. They’re divided into mortgage-backed securities and sold to retail investors for profit. Fractional investors and crowdfunding entities rely on aggregation platforms to pay a small amount to get a stake and receive rent from properties typically reserved for large investment trusts.

5. Immersive technologies

The virtual reality-aided walkthroughs and home tours popularized during the pandemic are becoming standard industry tools, along with augmented reality-enhanced previews and interactive 3D models.

6. Smart homes/buildings

As homeowners and tenants put a premium on comfortability, the demand for apps to operate “smart buildings” will grow stronger among managed property management software providers. Facilities whose ventilation, lighting, and security systems can be automated enhance resident experiences. Property owners, managers, and firms can track energy usage remotely, allowing them to identify patterns/reduce wastage.

7. Sustainability and energy efficiency

Property developers and managers will look to real estate asset management software that analyzes solar and wind power availability and shifts building energy usage to Internet of Things devices. A 2023 Freddie Mac survey showed that 67% of homebuyers and 54% of renters prefer eco-friendly homes.

Achieve Outcomes Efficiently with a Custom PropTech Solution

Using the right PropTech has become necessary to stay profitable in real estate and find the best value for money if you’re a buyer or renter. As a construction company, property management firm, or real estate agency, you should assess your needs before selecting the managed property management software for your business. With the right PropTech stack, you set yourself up for success.

Taazaa offers various property-related solutions, including custom apps and portals for your specific workflows and challenges. Our tenant management solutions, building maintenance platforms, construction management systems, and brokerage/realty software can empower your team with their efficiency and customer service features.