Real Estate App Development: The Best Use-Cases of Features and Technologies
This transformation was particularly evident in 2021, when the PropTech (property technology) market expanded from less than 2,000 to over 8,000 companies.
Real estate app development is reshaping the property industry, offering innovative solutions to traditional challenges.
The increasing difficulty of finding affordable housing, due to rising home prices and rents, has led to a demand for technology-based solutions. With the emergence of a tech-savvy group of homeowners and renters, particularly Gen Z, who are expected to spend more on rental services than any previous generation, this trend will likely continue.
What is real estate app development?
Real estate app development allows companies in the industry to provide customers with advanced features like property search and listing, property management, virtual property tours, and investment analysis.
They often incorporate advanced technologies like artificial intelligence, virtual reality, and big data analytics to enhance user experience and efficiency.
The development process typically involves understanding the specific needs of the real estate market, designing a user-friendly interface, and integrating the necessary technological features to meet those needs effectively.
# Why real estate app development drives innovation
Real estate app development is at the forefront of industry trends primarily due to its ability to integrate advanced technologies like Artificial Intelligence (AI) and the Internet of Things (IoT).
AI plays a pivotal role in processing and analyzing vast amounts of data to predict market trends, evaluate risks, and enhance experiences for both landlords and tenants. These AI-driven insights are crucial for businesses to make informed decisions and optimize property resale values.
The IoT, another significant trend, transforms how people interact with their living spaces. IoT devices in real estate can automate and control various aspects of a home, such as lighting, heating, and even preparing baths, thus enhancing the living experience and potentially increasing property value.
Types of real estate apps with examples
Real estate applications come in various forms, each serving unique functions within the industry.
Let’s group them into distinct types and explore a specific example for each.
# Automated valuation software
These apps offer property value assessments using data analysis and predictive algorithms, essential for buyers, sellers, and agents.
Example: Promodomo
Promodomo is an innovative real estate company with a mission to restore fairness, transparency, and dynamism to the Dutch housing market. Customers can access a comprehensive overview of properties for sale and available for rent.
Promodomo aggregates information on over 7 million properties throughout the Netherlands. It can perform automated AI/Machine Learning property valuations in less than 5 seconds with one click. Its features foster high levels of customer engagement, allowing Promodomo to generate high-quality business.
To learn more about how Promodomo was created, read our case study.
# Real estate appraisal for investors
These apps utilize an Automated Valuation Model (AVM) to pinpoint the highest ROI investments, allowing for making informed decisions.
Example: Vetted Property
Vetted Property is a data-driven, customizable, user-friendly, and AI-based tool that can estimate potential uncertainty levels for a particular investment and provide insights on ways to speed up the detailed pricing evaluation process.
Along with the AVM, Vetted Property offers an online platform with relevant investment metrics that real estate investors can use to make well-informed decisions. There is a subscription-based model that provides an investment calculator designed to reveal genuine investment expenses, as well as illuminate key elements like cash flow and potential return on investment calculations.
Read our case study for more information on how Vetted Property was developed.
# Realtor apps
These applications are designed to simplify the tasks of real estate agents, aiming to streamline their workflow, minimize paperwork, and improve client communication. They often integrate features like 3D property tours, direct communication tools, document management, and property management functionalities.
Example: Redfin
Redfin is a prime example, offering a comprehensive platform for agents. It allows for efficient property listing management and client communication and includes tools for scheduling and managing showings.
Its ability to customize searches and provide accurate value estimates also makes it a valuable tool for investors. However, its limited availability in certain areas, particularly rural regions, is a noted drawback.
# Property listing apps
Focusing on client engagement, these apps provide detailed listings of available properties. Users can filter listings based on location, budget, and personal preferences.
Example: Zillow
Zillow stands out in this category. It provides extensive listings with detailed information on properties, including price, location, photos, and agent contact details. Users can customize their searches to match their specific needs.
Zillow’s inventory includes over 130 million homes. Its paid lead generation service, Premier Agent, further enhances its utility for investors. Despite some inaccuracies in its Zestimate feature, Zillow remains a top choice due to its vast database and user-friendly interface.
# Property management apps
Targeted at landlords and property managers, these apps offer tools for tracking rent payments, managing maintenance requests, and overseeing overall property status.
Example: Buildium
Buildium is a notable example of streamlining property management tasks. It allows for efficient tracking of rent payments and maintenance requests and offers a comprehensive view of the property’s financial and operational status.
Buildium’s property management software is cloud-based (software as a service) and lets real estate professionals manage property portfolios, including leasing, accounting, and operations
# Smart home access apps
These applications interface with smart home systems, enabling remote control over home features such as lighting, heating, and security. They enhance living experiences and can increase property values.
Example: Google Home
Google Home exemplifies this category by offering control over various smart devices in a home, enhancing the user’s convenience and home security.
In practice, Google Home serves as a hub for all Google devices, allowing you to keep all of your connected devices and services in one neat place.
# Buying or renting apps
These apps assist users in finding properties to buy or rent, featuring extensive filtering options to tailor the search process.
Example: Realtor.com
Realtor.com is a leading app in this segment, providing a user-friendly interface for property searches with detailed information and filtering options based on user preferences.
Known for its up-to-date property information and partnership with the National Association of Realtors, Realtor.com offers valuable MLS data. It’s particularly useful for those interested in rental properties, though it does have limitations in contacting listing agents and lacks FSBO listings.
# Real estate agent assistant apps
Aimed at supporting real estate agents in their day-to-day tasks, these apps encompass client management, listing updates, and communication tools.
Example: Dotloop
Dotloop is a transaction management solution tailored for real estate agents and brokers, designed to enhance the customer experience in real estate transactions.
Dotloop facilitates document management, client interaction, and transaction tracking for real estate agents.
# Virtual tour apps
Virtual tour apps offer online tours of properties, allowing clients to explore properties remotely. This technology is particularly beneficial for sellers, agents, and potential buyers.
Example: VRpartments
VRpartments utilizes VR technology to enable users to visualize apartments from the comfort of their homes or anywhere else.
The product includes a conversion engine that transforms 2D PDFs into interactive 3D models using AI algorithms. It makes the process of browsing and furnishing apartments a breeze, all from a mobile device or computer.
# Real estate investment software
These applications cater to real estate investors, allowing them to search and monitor properties for sale based on specific criteria, facilitating their investment decisions.
Example: LoopNet
LoopNet is a specialized app for real estate investors, offering a platform to search and monitor potential investment properties based on various criteria.
This commercial property online marketplace attracts over 12 million unique monthly visitors. Its business model centers around the sale of site memberships. Such memberships include added benefits and come in Paid or Premium formats.
7 innovative technologies & features for your real estate app
The real estate industry is increasingly integrating cutting-edge technologies to enhance user experiences and streamline processes. Here are some of the key technologies being implemented:
#1 AI for task automation
In real estate app development, Artificial Intelligence is used primarily for handling large volumes of data.
AI tools are used for risk calculation, market trend prediction, and improving user experiences. They analyze behavior patterns and provide valuable insights, which are crucial for making informed business decisions.
#2 AR/VR for property showings
3D Virtual House and Apartment Tours using Augmented Reality (AR) and Virtual Reality (VR) technologies are significant trends.
They allow prospective buyers to explore properties in detail before visiting them physically. The recent advancements in performance and accessibility of Virtual Reality headsets facilitate a nearly realistic view of the property’s state and interior, saving time and money for all parties involved.
#3 IoT Technology for Real Estate
The Internet of Things is transforming the real estate industry by introducing smart homes and apartments.
IoT devices provide smart amenities like lights and locks, enhanced WiFi and smart sensor connectivity, and community management features such as built-in event calendars and resident assistance, thus elevating the living experience.
In the realm of real estate app development, we often see our clients underestimate the complexity of integrating AI into real estate apps. It’s crucial to balance ambition with practicality; AI can provide transformative insights and automation, but it requires a robust data strategy and realistic expectations about outcomes. Our role is to guide clients through this process, ensuring they understand both AI’s potential and its limitations. We want their real estate solutions to be truly innovative and effective.
CEO, ASPER BROTHERS
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#4 Big data and analytics
Big data in real estate involves storing large amounts of information on consumer preferences.
Machine-learning models based on big data can predict rent rate changes with high accuracy, aiding clients in making better investment choices.
#5 Blockchain
Blockchain technology is increasingly used in real estate to verify encrypted transactions and ensure the security of financial records.
It’s particularly useful in fractional property investment, allowing landlords to sell portions of their stake in properties.
#6 Digital transaction management
Digital transaction management is pivotal in removing the need for physical paperwork, allowing for signing documents electronically.
This authorizes parties involved in a transaction to access contracts from anywhere in the world, significantly streamlining the process.
#7 Hyper-personalized messages
Using datasets and predictive analytics, real estate agents can better understand their customers and target them with highly personalized messages.
This technology allows for the creation of targeted marketing content, enhancing customer engagement and conversion rates.
The cost of real estate app development
Real estate app development costs vary widely depending on the complexity, features, and platform of the application. Here are some key cost factors:
- Web and mobile real estate app development. Developing a native real estate mobile application for a single platform, like iOS or Android, involves using specific programming languages and technologies native to these platforms, which requires specialized skills and resources.
- UX/UI design. This phase, which involves creating the application’s interface and designing the overall user experience, is critical to app development. A well-designed UI/UX is essential for engaging and retaining users.
- Testing and quality assurance. At this stage, you ensure that the app is free from bugs and performs as expected. Rigorous testing is crucial for the app’s reliability and user satisfaction.
- Project management. Overseeing the entire development process effectively is vital for the timely and successful delivery of the app.
# Feature-specific costs
The total cost can significantly vary based on the features included. Key features and their associated costs are as follows:
- Real Estate Valuation Engines: These are crucial for assessing and evaluating properties and ensuring accurate results.
- AR/VR: Offering 3D tours through AR/VR technologies can be expensive but are essential for a comprehensive user experience.
- Basic App Features: Features like property search, virtual tours, listings management, notifications, mortgage calculators, chat and messaging, agent profiles, property analytics, reviews and ratings, and mobile optimization are foundational for real estate apps. Each of these features contributes to the total cost, enhancing functionality and user engagement.
# Total real estate app development cost
In summary, developing a real estate app like Zillow or Redfin costs tens of thousands of dollars, with the price influenced by the number of features and the hosting hardware chosen.
The total cost for a basic app, including various stages like development, design, testing, and project management, can start at around $80,000 or more, depending on the complexity and the specific features included.
Conclusion
The future of real estate app development is poised for continued innovation and growth. As technological advancements like AI, AR/VR, IoT, and blockchain become more integrated into real estate applications, the industry will likely witness a significant transformation in how properties are bought, sold, managed, and experienced.
The increasing demand for personalized, efficient, and tech-driven solutions in the real estate market suggests a trend toward more sophisticated and user-centric apps.
This evolution will not only enhance the user experience but also open new avenues for investment and property management, reshaping the real estate landscape for years to come.
