Decades ago when Marvel comics were ruling the hearts of fiction lovers, never anyone thought that technology could evolve to such an extent. Robots, drones, artificial intelligence, internet of things, and augmented and virtual reality brought to the world an out of the ordinary time when a person sitting in one corner of the world can easily manage his home or property on the other side of the world with just a click.
Today we call this the smart home technology that is making its way to be categorised under the ‘Proptech’. People have become tech-lovers and so with every task they perform, every facility they use, they look for technology. This is clearly being witnessed in the real estate sector where people are increasingly opting for smart properties.
The Proptech Middle East 2018 event happening at Sofitel Dubai The Palm Resort & Spa in Dubai, one of the leading events of the UAE will take this reality of Proptech to a whole new level. The event will bring to the world stage the significance, insights and a new perception towards the real estate sector transforming the experience of the property agents, sellers, investors, buyers, and renters. If you are one of them it is important to understand the changing trend in the property sector discussed ahead.
Smart home technology and how it impacts property buyers and renters
What Are The Impacts Of Smart Home Technology?
The smart home technology trend is gaining traction in the housing sector. The integration of internet of things into homes is set to grow exponentially in 2018. Smart home technology and property experts forecast that by 2022, an average smart home could consist of over 500 fully integrated intelligent devices.
Another fact which is being witnessed is that millennial generation is increasingly showing interest in purchasing smart homes. As more and more millennials are earning high salary purchasing a smart home has become one of their major priorities.
Additionally, smart home technology promises to substantially save on energy and provide security as well as healthcare benefits which is adding to the growing interest among the property buyers.
It is a fact that smart proptech has had a great impact on the real estate sector for a couple of years. But it has shown its most significant impact on the factors discussed below:
1. Resale value – The value of a smart home increases visibly if it is equipped with smart home technology. The amenities and intelligent devices integrated into a house determine the market value of a home or property. Hence now and in future, a smart home will have a higher value (and resale value) than a home that is not installed with smart proptech.
2. Market time – Of course there is no written formula to determine how long will a property take to sell. However, factors such as price, condition, features and location definitely impact the market time for a property. But it has been researched that in general, a smart home will sell faster than a traditional home without smart products. A survey based on US respondents revealed that 81% of home buyers would purchase a home only because it has been installed with smart home devices.
3. Potential buyers – Smart proptech installed in a house can easily change the type of buyers that are potentially interested in a home. Millennial property buyers are attracted to property that is equipped with proptech or smart home technology. So, outfitting a property with proptech is a great way to increase the number of potential buyers.
Besides the millennial generation, a smart home technology could be an excellent way to attract elderly buyers who are looking for the increased smart healthcare system and security system. Or it could turn out to be a perfect buy for people who are mostly away from home due to business travel or even leisure.
Furthermore, smart proptech could even attract customers who are very particular about improving energy efficiency and the ecosystem.
The Impact of 3D Printing in Real Estate
The Impact Of 3D Printing In Real Estate 3D printing is another very important technology of smart proptech that will have a significant impact on the real estate sector. 3D printing also known as additive manufacturing can build a real three-dimensional object using a digital file. It is an accurate process that can create a complex object that involves successive layers and intricate shapes without any wastage of the material used.
Soon the time will come when people will live in printed homes. Yes it does sound weird but this fact is all set to disrupt the real estate sector in the coming years. 3D printing technology has the potential to manufacture homes and properties instead of constructing them.
Compared to the conventional way of construction, 3D printing has several benefits that will probably bring this proptech to the core of property creation. 3D printing can create affordable homes in no time without the requirement of a massive workforce, labour and wastage of materials.
In addition, research shows that 3D printed properties are more environment-friendly than the conventional constructions. Efforts are being made to use recycled substances and the discarded plastic objects lying in the water bodies, waste bins to be used as property printing materials.
Smart City Dubai’s First-Ever 3D Printed Office
Even in 3D printing, the ever-innovative Dubai is standing at the forefront. Recently, the United Arab Emirates National Committee hired two leading tech companies to create its first 3D printed building which is dubbed as ‘The Office of the Future’. Gensler from California and another leading tech construction company from Shanghai, Winsun manufactured the most advanced 3D printed building in the world. The pioneering structure was created in just 17 days and installed in just two days.
After the success of the ‘Office of the Future’, his Highness and his smart city team planned an entire Dubai 3D Printing Strategy in line with the smart city efforts being showcased by the Smart Dubai, Dubai Future Foundation and the government. The strategic planning unfolds that from 2025 onwards 25% of each building in Dubai to be 3D printed under Dubai Municipality regulations. Also, with the 3D printing technology, they aim at reducing the labour by 70%, cost by 90% and time by 80%. Apart from this, the strategy also includes the creation of the 3D printed walls that are manufactured using eco-friendly geopolymer cement that cuts down carbon emissions by tenfold.
Till date, the officials of Dubai government share a close collaboration with Renca, a Russian based company and with Solar Bankers from US, for the deployment of 3D Printing Strategy In Dubai.
As per reports, the global market for 3D printing is forecast to touch US$120 billion by 2020 and roughly US$300 billion by 2025. Therefore, this shows that in the next few decades, a significant part of the urban population in the most prosperous countries such as North America, Netherlands, Russia, Japan and undoubtedly the UAE will live in 3D printed homes and work in 3D printed offices.
Well, this was just a small glimpse of how the smart proptech will dig the route for the real estate sector around the world and in the smart city Dubai. More on this topic will be discussed by industry experts on the 29th and 30th October 2018 at the Proptech Middle East 2018.