Use of Virtual Reality for real estate sales
Introduction
PropTech (Property Technology), also called ReTech (Real Estate Technology), is a term that has been used to group innovations and the application of new technologies in the real estate sector. "It is a trend originating in the United Kingdom that emerged and gained popularity during 2014, it is an English acronym of “property” and “technology”, that is, technology applied to property."[1].
In general terms, PropTech describes digital products for the real estate sector (in English).[2] In this sector, a group of Startups has emerged that use technology to change the conditions of how business is done, how it is built, how it is designed, how it is sold, how it is rented and how real estate is managed.
"PropTech entrepreneurs and technology evangelists describe this movement as a "digital disruption" of the real estate industry towards a digitalized global market."[3]
The technologies of the PropTech sector integrate virtual reality, home automation, internet of things, property management, crowdfunding, big data, real estate portals, cooperative work spaces, blockchain and Open Banking.
PropTech as a sector and its relationship with other markets
It is considered a sector in itself because the disruptions it introduces into the traditional processes of the real estate industry lead to new behaviors, new paradigms, and a redefinition of the real estate market itself. This has positive and negative connotations that will have effects on both the market and people's lives.
For example, the effects have been observed in "online sales and brokerage dynamics"), in the commoditization of space (or land), in digital sales and in financial products associated with the Fintech sector for mortgage and capital financing processes"[4] both for new developments and for the end buyer.
Thus the real estate market is integrated into the "data-driven" markets or led by data analysis, also with the Fintech sector (Technology and finance) and in general with all the markets crossed by technology, which open the spectrum of data capture on consumer behaviors and people's decisions.
Among several value propositions of companies in the sector are the elimination of intermediaries, the democratization of access to housing, the reduction of purchase and sale times and the improvement of payment conditions for real estate assets.