The real estate sector in Switzerland has a rather conservative image, seemingly rightly or wrongly hostile to change. However, forced or coerced, the players in sales and purchasing, as well as property managers, will have to rapidly initiate their digital transformation. However, some have already successfully negotiated the digital shift.
Data management, dematerialisation, virtual reality and social networks are changing the game at all levels. Almost 100% of property purchases now start with an internet search. The latest health crisis has also accelerated the need for digital transformation even though, admittedly, human contact remains the norm before any purchase.
In construction, brokerage, real estate lending and property management, digitisation and digitalisation also seem inevitable. The arrival of Big Data and artificial intelligence are real assets that secure exchanges and accelerate all decision-making processes.
Let’s see why the real estate sector cannot do without a thorough digital transformation.
Digital revolution and real estate sales
Some of those involved in digitisation believe that the real estate sector, and especially physical agencies, will disappear, especially in the Anglo-Saxon world. However, one cannot imagine buying a house without physically visiting it.
Nevertheless, all upstream and downstream acts can be dematerialised.
On the contrary, it is no longer uncommon to find not only photos but also videos of virtual tours and 360° photos in the classified ads on the web.
This is especially true for off-plan real estate projects, where the immersion provided by the virtual reality headset is revolutionising the sector.
Another undeniable sign that digitalisation is going well is that it is increasingly rare for the first step in finding a property to be taken in an agency.
All purchases now involve at least one search on Google or on classified ad sites. Even if, at some point, a physical visit to the house or flat is always essential.
However, some US start-ups have already embarked oncompletely virtual sales processes.
Increasingly, we are also seeing the emergence of agencies with no office at all. The agents manage the whole process of finding and buying a property virtually, apart from the visits, of course, in person. The real estate agent controls everything in a dematerialized way, from his home, thanks to his computer, his smartphone or his tablet.
Not needing to rent an office allows these new estate agents to greatly reduce their costs, and therefore their commission.
Thus, limiting expenses completely through the complete virtualisation of the real estate agency has resulted in fairly low fixed costs regardless of the amount of the property sale. A novelty that was unimaginable until recently.
From now on, it is no longer possible to conceive of an estate agency without a website or without a presence on the essential classified ad sites. More and more, buyers and sellers are meeting on general or professional social networks.
The real estate sector, often perceived as hostile to change, is undergoing its digital transformation in an accelerated but sometimes constrained way.
And yet this profound change in the way things are done must be done with a clear head, with a real strategy that will transform all the tasks of the estate agents.
Because, as experience shows, a digital transformation carried out in a hurry will cause major difficulties in the short and medium term.
A true digitalization must not only touch the aspect of property proposals, virtual visits, exchanges by phone or email, but also the whole back-office and customer relations.
Complete digitisation of asset management
Indeed, what can be called “secretariat” in simplified terms is already on the road to digitalisation. Office software, spreadsheets, emails, are part of the basic tools of the real estate agency organisation but also of the construction and property management companies.
Listing, classification of properties, management of leases, and even electronic signatures on tablets are gradually becoming part of everyday life.
For large property management and construction companies, this means better management of client resources, but also of staff and administration in general. Fees, taxes, and all paperwork can be digitised and their management automated.
Dematerialisation also allows access to all data from anywhere at any time. During a visit, an agent can consult other offers suitable for customers. In an exchange with investors, an asset manager may present a chart of accounts.
All digital tools shorten delays and also secure exchanges through the use of the Cloud and blockchains.
It is easy to transfer the management of the inventory of fixtures to a tablet and to sign leases remotely. For their part, blockchains are making a strong entry into the market. They speed up fiduciary exchanges while providing unparalleled security for all processes.
Finally, a mortgage broker can be aware in real time of market developments, bank rates, etc.
The importance of big data
The analysis of data by artificial intelligence tools and cross-functional software such as CRM – customer relationship management – is an inevitable development. And, if the digital transformation is done well, it can only be positive for all real estate players.
A real estate agent will have at his or her disposal a software solution that automatically cross-references client data, needs and desires, with properties on the market.
Cross-referencing data with artificial intelligence solutions provides investors and property managers with real-time market forecasts. Similarly, artificial intelligence can accurately calculate the return on investment of rents, property projects and all financial data.
In a very tight real estate sector, the predictive analysis provided by big data and artificial intelligence is an undeniable advantage over the competition.
Valuable help
The world of real estate is therefore changing rapidly and, while the human element is still at the heart of the transaction, digitisation is opening up opportunities and facilities that cannot be ignored.
Buying a house is always a special moment in the life of a person or a family. We are therefore not yet on the way to a total digitisation of the purchasing act, except for sales on plan, but everything else can be digitised.
Whether it is for agencies selling and buying property or for managers and brokerage firms, digital transformation, which is still in its infancy, is one of the major challenges of the years to come. Indeed, it is the only winning strategy to be implemented at the moment.
However, if it is done in a hurry, without taking into account a global vision and its effects on internal and external exchanges, it can lead to serious short-term management problems.
To better manage this digital revolution, it is best to call on outside experts who will have a fresh look at your company and its operations.
Our digital transformation consulting company, MCA Seed Academy, offers you to carry out a global internal audit.
Our professionalism, our knowledge of the latest digital solutions, our power of analysis of the ergonomics, will already be assets for you to serenely negotiate your digital revolution. A fresh eye guarantees innovative and effective solutions.
We will be able to offer you solutions to avoid anomalies in internal processes, duplication of effort and obstacles to efficient work.
We will also support you in the development of innovative management and a more transversal management of your real estate company. Digitalisation often gives rise to a new, more efficient and calmer way of managing all your employees’ tasks.
A successful digital transformation means, above all, having a pleasant and efficient control centre that facilitates the day-to-day work of all staff but also helps them to implement winning strategies in the face of competition.