The real estate market is in trouble since the 2009 crisis. To counter this negative effect, many ways were set up to stimulate the market and encourage people to buy.
In France, many laws were set up to facilitate the market but also new technologies.
Digitalisation emerges also within the real estate market with the web, connected objects and augmented reality.
Let’s focus on the virtual reality and the augmented reality within the real estate market!
What is the difference between the virtual reality and the augmented reality?
- Virtual reality means that you fully enter in a virtual environment. Most of the time it is possible thanks a virtual reality headset, through an app or directly on the web.
In the real estate market, a customer who wants to buy a new apartment can walk in the virtual apartment which does not exist. The objective is to encourage a sense of immersion, helping the customer can easily project himself.
- Augmented reality is based on an existing environment where we add virtual things.
The customers take a tablet and can imagine in the reality their future houses or their future living rooms within the house.
What can we do with the virtual reality within the real estate sector?
1.Increase efficiency for both part
Virtual reality presents a lot of advantages for the client and for the real estate agent.
First, the agent can easily optimise its time. Indeed, from its agency the agent can schedule a lot of visits for different properties. Through a simple headset, the agent can propose many properties far away from each other, thus the real estate agent saves a lot of time they used to waist by riding from a house to another.
Second, the client can visit a lot of properties from the agency which offers a comfortable environment. It becomes easier for clients to project themselves in this environment.
Indeed, the virtual reality offers a lot of advantages. Thank to this technology you can imagine your own decoration in your future apartment for instance.
It is a real asset, because many people have difficulties to project themselves in a foreign environment. They can feel at home even before going in this apartment.
2. Develop your product range
The real estate agent can broaden its customer base by selling properties in an international level.
In fact, the agency can sell properties abroad and enable its own customers base to visit an apartment abroad and thus invest abroad through their agency.
Another sector, the construction industry and the industry of the new. These two industries sell buildings which are built in the future.
For instance, in the construction industry, you buy a land and then you build your house on it. It increases the difficulty to project yourself because you have to imagine your future home on this land and then imagine your house inside.
Same problem for the new industry. When a property developer decides to launch its building program there are 24 months between the idea and the construction of the building.
The augmented reality permits to this type of clients to imagine their house/apartment within its environment.
The virtual reality permits to the customers to visit this house which is not build yet.
3.The limits of this product
First, these kinds of solution are difficult to implement. As the digitalization is new in the real estate sector, it is hard to model properties in virtual reality.
You have to find a high qualified solution in order to propose a good product to your customer. If bugs appear the positive effect of the virtual reality turns into an unpleasant experience for the customers.
So you have to choose THE good actors in the market as there are many news it is hard to know which one is the most efficient.
Second, it represents a real investment for agencies with little views on the return on investment because of this recent solution. They have to buy headset or glasses for their agencies and buy also the solution.
>What is the price for a virtual visit?
Some actors propose to create a 3D environment from 59€ excluding taxes per house. If you want to add options such as creating a before/after environment it represents extra costs.
Then you have to buy the headset for the VR which cost approximately 500€ per headset.
Finally, if you want to post it on the web you have to pay another option.
However, only few clients will accept to buy their house through virtual reality and they need to be physically in their house.These solutions represent a real advantage in terms of time for agencies and enable them to develop their range of products. Customers can easily project themselves in their future properties.
Virtual reality will never replace a visit but it can be seen as a helping tool for agencies and customers in the real estate sector.