How AR and VR Are Changing the Real Estate Industry?

Imagine being able to explore a potential home, walk through its rooms, and even envision your furniture in it, all without stepping foot inside. Thanks to augmented reality (AR) and virtual reality (VR), these experiences are now possible in the real estate industry.

These transformative technologies have revolutionized the real estate industry, providing buyers, sellers, and agents with immersive and interactive experiences. In fact, the global market ecosystem for AR and VR in the real estate industry is anticipated to grow to $1,151.9 million by 2023.

In this article, we will explore how AR and VR are changing the real estate industry, the benefits they offer, and some successful applications of AR and VR in the real estate industry.

Understanding AR and VR

Augmented reality (AR) overlays digital elements in the real world, enhancing our perception and interaction with the physical environment.

On the other hand, virtual reality (VR) creates a completely computer-generated environment that users can immerse themselves in through specialized headsets or devices.

The adoption of cutting-edge technology has experienced an upsurge tick in recent times. According to a Goldman Sachs report, it is projected that the AR and VR market will reach a substantial value of $80 billion by 2025.

Before looking into AR & VR in real estate, read our previous blog about, How AR and VR Are Transforming Learning Experiences?

Applications of AR and VR in the Real Estate Industry

Let's look at how are AR and VR used in real estate today:

Virtual property tours

Imagine using your smartphone or VR headset to take a virtual tour of a property before scheduling a physical visit. By exploring real estate properties with AR and VR technologies, you can get a realistic sense of the layout, size, and features.

Also, through interactive 3D visuals, you can examine rooms, check finishes, and even experience panoramic views. A Jasonfox report suggests that listings with virtual tours receive 87% more views than those without.

Property staging

Traditional home staging involves physically decorating a property to showcase its potential. However, with virtual staging, companies like Stuccco and Virtual Staging Solutions can digitally furnish and decorate empty properties, giving you a sense of how the space could look when furnished.

By virtually adding furniture, artwork, and decor to the property photos, you can visualize the potential and envision yourself living in the space. Additionally, virtual staging is cost-effective and provides a flexible way to showcase the potential of a property without the need for physical furnishings.

Remote collaboration

The benefits of using AR and VR in real estate transactions includes a seamless collaboration between agents, buyers, and sellers, regardless of their physical locations. Tools like Spatial enable real-time collaboration in a virtual meeting space.

Agents, buyers, and sellers can come together from different locations, review property details, and discuss design ideas. They can view 3D models, annotate features, negotiate contracts, and make decisions together, saving time and eliminating the need for in-person meetings.

Better marketing and sales

We also have to note the impact of augmented and virtual reality on real estate marketing and sales. With high-quality 3D virtual tours and interactive showcases, you can attract potential buyers and keep them engaged throughout the sales process.

By creating immersive and interactive experiences, these technologies enable emotional connections with properties, leading to faster decision-making and increased conversion rates.

For instance, Sotheby's International Realty has created an AR app that allows users to view properties through their smartphones. By pointing the device's camera at a property, potential buyers can see virtual information overlays, such as property details, nearby amenities, and 3D models of the interior.

Architectural visualization

Using AR and VR, developers and architects can create virtual models of buildings, allowing stakeholders to experience the designs in a realistic and interactive manner. AR can overlay digital elements onto physical architectural models, providing additional information and context. VR, on the other hand, offers immersive walkthroughs of unbuilt properties, helping potential buyers and investors visualize the final product before it is constructed.

Property management and maintenance

AR solutions like Streem enable property managers to conduct remote inspections and guide maintenance staff through repairs. By using AR overlays on live video calls, managers can identify maintenance issues, provide visual instructions, and offer real-time support, reducing downtime and improving efficiency.

VR can also be employed for training property management staff, enabling them to practice scenarios, such as emergency response or building maintenance, in a realistic virtual environment.

Interior design and customization

Another way how AR and VR are changing the real estate industry today is by enabling buyers to personalize and customize their homes. Companies like IKEA have developed AR apps that allow users to virtually place furniture in their homes.

By using the smartphone's camera, users can see how different furniture pieces will fit and look in their space. This enables buyers to experiment with different layouts and make more confident decisions about their interior design choices.

The Impact of Augmented and Virtual Reality on Real Estate Marketing and Sales

Now that we've looked at how are AR and VR used in real estate today, let's explore why AR and VR work for real estate:

Time and cost savings

One of the benefits of using AR and VR in real estate transactions is that instead of spending hours commuting to different locations, you can explore multiple properties from the comfort of your own home.

This convenience eliminates the need for lengthy physical visits to properties that may not meet your requirements. By narrowing down your options through virtual tours, you can focus your time and effort on visiting only the properties that truly interest you, making the search process more efficient.

Enhanced decision-making

AR and VR experiences help you visualize yourself in a property, leading to more confident and informed decisions. By immersing yourself in virtual property tours, you can get a realistic sense of the space, allowing you to assess if it meets your needs and preferences.

Virtual staging takes it a step further by digitally adding furniture and decor to empty spaces, allowing you to see the potential of a property and envision your future home. These virtual experiences evoke emotions and create a stronger connection between you and the properties, helping them make decisions with greater confidence.

Increased reach and engagement

AR and VR marketing tools attract a wider audience, including international buyers. These technologies create immersive and interactive experiences that captivate potential buyers and increase engagement, ultimately driving higher conversion rates.

With the ability to showcase properties in a visually compelling and interactive manner, you can reach a broader market and generate more interest. Moreover, properties listed with virtual tours and interactive showcases generate 49% more leads than those without.

Efficiency and convenience

Streamline your property search process by exploring real estate properties with AR and VR technologies. These technologies allow buyers to explore multiple properties virtually. This saves time and enables you to focus on serious prospects, resulting in more efficient transactions.

You can efficiently manage showings by prioritizing properties that align with the buyers' preferences, eliminating unnecessary physical visits to properties that may not meet their criteria. This streamlined approach enhances the overall experience for both you and the buyers.

The integration of AR and VR technologies in the real estate industry holds immense potential for revolutionizing every aspect of the field. From transforming the home-buying experience to revolutionizing property listings, the impact of augmented and virtual reality on real estate marketing and sales is huge.

Adopting AR and VR is no longer an option but a necessity for real estate companies aiming to thrive in this digital era. It's clear that AR and VR are here to stay, and if you embrace and leverage these technologies, you will emerge as the true winners in this industry.

Read our previous blog, Top AR & VR Trends 2023