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Buying real estate remotely. Is it possible at all?

The digitization process has accelerated in every area of ​​life, but the real estate world is left behind with traditional models, as the process of buying the property has not changed over the years. From online transactions to crypto purchases, the revolution seems to be knocking on the door,

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• Real Estate

• Apartments

Matan Partman, Guest Column

Thursday, 11 November 2021, 11:25 Updated: 13:19

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In recent years we are in the midst of a digital revolution that dominates all walks of life.

However, when we look at the global real estate industry, which is considered more traditional and outdated, it can be seen that it has not yet adopted the technological changes as they occur in other areas, even though it is constantly growing as more and more capital flows into real estate investments Real estate and demand are increasing due to the significant increase in population.

It can even be said that the process of buying a property has hardly changed over the last few decades.

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It's not a question of when we can buy remotely, but when we want to do it (Photo: Reuven Castro)

Imagine the following situation. You have saved money from work and various investments and you want to put things in order. You enter your details in smart financial planning software, and it draws your financial information from the various entities - income, expenses, various savings, options for taking financing, etc., taking into account the goals you have defined and thus offers you alternatives for investment, including real estate investments overseas You are interested in purchasing or investing in a property that is located overseas and you cannot fly to a destination and physically examine it. You want to get as much information about it as possible and as quickly as possible. You turn to a virtual real estate firm that knows how to identify and locate properties with the help of Big Data software and smart algorithms that manage to locate the attractive and right property for you. A virtual real estate agent meets you and allows you to see the entire property through virtual reality glasses For you a virtual tour of the property.

Assuming that this is a property that is still in the planning and construction process, the agent will provide you with smart simulations of the property, which will present you with the expected architectural design, in the closest way to reality. Eventually, after receiving all the necessary information and deciding to proceed with the purchase process, you choose to pay for the property using cryptocurrency, by digital transfer directly to the property owner.

This is a whole process that is done entirely technologically, from the stage of interest in the property to the final stage of the purchase, and is called "ProTech" (technologies for the real estate industry). This is one of the hottest issues in the industry, The physical and tangible realm has to go a long way to make the transition to the virtual world, but one can already see sparks of change.

For example, the real estate giant JLL recently announced the acquisition of the Israeli company Skyline for about $ 100 million. Skyline uses information and technologies of artificial intelligence and algorithms of machine learning to process information quickly and produces operational insights for real estate experts. This move is expected to allow customers to better assess future value of properties, save on expenses, identify promising investment opportunities and make critical business decisions (such as when to raise rent, when to make property improvements or sell, etc.). When it comes to smart financial management software, there are quite a few companies operating in the field, including Betterment, a well-known global financial management company and Moneytor Israel.

Also, earlier this year, a huge deal was signed in Miami, in which a penthouse in Miami was sold to an anonymous buyer, for $ 28 million - paid for entirely in cryptocurrencies. This is the most expensive crypto real estate deal known in the US to date. I anticipate that integrated blockchain real estate will be significantly assimilated as early as in the coming years. The blockchain offers unparalleled speed, through the production of smart contracts, which do not require third-party intervention. The parties secure all the information contained and prevent the changes.

I personally am a big supporter of combining innovative technologies to the real estate world. In my opinion this should be an aspiration of every factor operating in the field and interested in continuing to be relevant and maintaining a competitive advantage. Already in the Corona period, The handshake turned into rubbing elbows and virtual open houses often resulted in the purchase of properties not previously seen by buyers.

Matan Partman (Photo: RM)

However, it is important to note that the road there is still long and in order for that to happen a number of things need to happen. First, the assimilation of new technology in a traditional industry requires a deep understanding with the corporate culture of each company and the nature of its customers. Combining technology without knowing the existing infrastructure and regulation in the industry, is doomed to utter failure. In addition, real estate companies must employ innovation managers whose job is to formulate a clear and long-term innovation strategy. These managers look for new opportunities in the market and work to find start-up companies that have developed interesting technologies that can be implemented in the company.

Finally, the customer side needs to be taken into account.

In the initial stage, it can be estimated that the first efforts of these technologies will be large entities, which are interested in investing their capital in a variety of assets and in a wide spread.

Today, a private person interested in purchasing a personal property will still prefer to come to see it physically, meet with a real estate agent, build a relationship of trust with him and get a humane answer to any question that may arise throughout the purchase process. Themselves in the field and will give every potential buyer the security required to adopt it.

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