shaping the future of digital experiences in these fields.
EXPECTED REACH IN AR CONSTRUCTION MARKET BY 2027
IKEA INCREASE ENGAGEMENT AND CONVERSION WITH AR BASED APP
OF REAL ESTATE AGENTS ARE USING VR ALREADY
OF BUYERS PREFER TO BUY WHEN VENUE HAS AR EXPERIENCE
How AR/VR Are Transforming the Real Estate & Architecture Industry?
The visual nature of the real estate and property industry, as well as the architecture, allows for many valuable solutions, including VR and AR. Extended reality solutions show us various ways to enable stakeholders to operate more efficiently and overall better. XR technologies are revolutionizing how we think about real estate and architecture, making it easier for architects and developers to create stunning designs that meet customer needs.
Because of the immense potential virtual and augmented reality offer for the real estate industry, it’s been estimated that VR alone could generate up to $2.6 billion by 2025 in real estate. This number could be even higher due to significant financial investments that are being made in AR/VR technologies for the real estate industry.
According to economists, implementing the latest VR technologies is projected to significantly reduce construction costs by approximately 90%, potentially saving the industry billions of dollars in losses caused by errors stemming from inadequate data. The estimated saving is around $15.8 billion. Overall, VR and AR have immense potential to make the real estate process more efficient, accessible, and engaging for buyers and sellers alike. On the other hand, when implemented in the architecture industry, VR and AR could lead to a better design process, improved collaboration between team members, and a better understanding and overall vision of the structure.
Check out these interactive solutions, which could forever change the real estate and architecture industry:
VR and AR can create realistic 3D models of building designs, allowing architects to visualize and present their designs to clients more immersive and engagingly. This allows for better feedback and understanding of the design before construction. Studies have shown that mixed reality design review could increase comprehension by more than 15% over 2D drawing-based review methods. This method saves time and resources by identifying and resolving design issues before construction.
Furthermore, AR visualization apps could allow users to add virtual models to real-life scenes. Builders can customize building designs based on client preference by converting 2D designs into VR prototypes.
Building Information Modeling (BIM) is a digital representation of a building’s physical and functional characteristics. It’s software used by real estate companies; construction firms; and architecture, engineering, and construction (AEC) professionals for effective project life cycle management. When combined with augmented reality, this technology allows architects, engineers, and construction professionals to visualize and interact with a building’s digital twin in the real world. This can be used to improve collaboration, coordination, and communication during the design, construction, and maintenance phases of a building’s life cycle. The market size for BIM is projected to reach 16 million by 2027. This is also because some governments, such as Germany and Denmark, have implemented this tool in their infrastructure projects, considering the positive results and benefits of using the technology. Surveys claim that utilizing BIM AR tools could reduce design errors by up to 50% and construction errors by up to 75%.
When it comes to architecture, the global VR market was valued at 71.8 million in 2018, with projections to grow at a CAGR of 42.8% until 2024. On the other hand, the global AR market in construction could reach 11.14 billion by 2027.
Since architecture is considered a high-risk industry, multiple AR and VR tools could be utilized to improve the security management process, and these tools could identify potential security vulnerabilities and test out different security measures before constructing the building. Addressing potential security risks early in the design process reduces the overall cost and complexity of implementing security measures. Furthermore, AR and VR can be used to enhance security during the operation of the building, for example, by providing real-time information to security personnel about the location of individuals and assets within the building and enabling remote monitoring and control of building systems and security devices. Research shows that the application of AR technology could reduce inspection time and cost by up to 60% via a remote safety inspection service.
AR-based remote sensing systems are proven to enhance worker safety and ensure increased productivity by 40% compared to conventional productivity management methods.
The advancements in AR and VR could revolutionize education and training within the architecture, engineering, and construction (AEC) industry. Using VR in training results in a retention rate of up to 80% one year after training, compared to 20% just one week after traditional training. The use of AR and VR in education and training can enable architects and other AEC professionals to visualize and interact with designs in a realistic and immersive way, allowing them to make more informed decisions and better understand the implications of their design choices. Furthermore, using VR technology in training can provide a more realistic and engaging learning experience, allowing professionals to understand a space’s functionality and usability better before it is constructed. VR training can be an effective tool for improving the safety performance of construction professionals and workers. A study has shown a 39% increase in identifying hazards and a 44% improvement in managing risks among construction professionals and workers.
Virtual tours are a feature that allows potential buyers to explore a property in detail using VR technology. The tours can be accessed through a VR headset, such as the Oculus Rift, HTC Vive, or a web browser or mobile device. Virtual tours with augmented reality could be a crucial tool for the real estate industry since it’s shown that 92% of buyers use the internet to search for a home, and the majority (68%) use a mobile device. Virtual tours can include a variety of features, such as:
- 360-degree views. This solution is created using footage captured by unique cameras that use multiple lenses to capture a panoramic sphere of video.
- Interactive elements: This feature allows the user to interact with the environment: open doors, switch on lights, and interact with other property features.
- Floor plans: This component lets the user explore the property’s layout, including the size and location of each room.
- HD images and videos: High-resolution images and videos can be used to show the property’s features in great detail.
Furthermore, it’s been shown that homes with virtual tours sold 68% faster than homes without virtual tours.
This interesting feature is used to create virtual versions of furniture and decor that can be placed inside a property to give potential buyers an idea of how the space could look when it is furnished. And there is no need for specialized hardware to make this feature work. It could be achieved via a smartphone or a tablet that displays the virtual items in the real-world environment of the property. For real estate agents, this means they can showcase the property in the best possible light while entertaining the buyers. These buyers are trying to visualize what a property could look like with different styles of furniture and decor. This type of app is already quite popular with furniture retailers. IKEA, a world-known Swedish furniture company, reported over a 50% increase in engagement and conversion rates with their AR-based app, Ikea Place. The app allows users to see how furniture would look in their room before making a purchase and has successfully driven sales and reduced returns and exchanges. In addition to IKEA, Home Depot, a leading US furniture company, also reported that customers who used augmented reality to visualize furniture before buying converted at a rate up to three times higher than those who did not.
AR marketing has proven so effective that it’s become an industry standard for many fields. Marketing professionals must accustom themselves to this technology to avoid declining sales volume. AR has opened a world of opportunities for realtors. They serve as an information hub for real estate projects by providing crucial details such as pricing, floor area, and carpet area. This information is available to users by simply scanning the building or space using the app. As per research, 32% of real estate professionals reported using virtual staging in their marketing efforts, with projections to increase with technological improvements. There are many ways to enhance any real estate business with augmented reality, including creating a portal into your space (meaning a digital replica in which you immerse yourself with a hand-held device). With this solution, you can lean in, walk around the unity, and inspect surfaces. Another great way to utilize augmented reality for real estate marketing is AR branding. Image-based AR markers can be added to portable and shareable brochures and rack cards just as easily as they can be added to stationary posters and billboards.
Research shows that 56% of buyers said AR gives them more confidence about the product quality, and 61% say they prefer to buy when the venue offers AR experiences.
VR bike tours could offer a fully immersive experience for communities and districts. These tours change how areas previously only seen on blueprints are now presented. This solution lets users explore new regions by virtually biking through life-like surroundings with cars, pedestrians, public places, and houses, all shown in real-life sizes. Additionally, virtual markers with descriptions assist in navigation. Designers are seeking innovative methods to present their projects to investors and clients, especially in showcasing city quarters, as customers are becoming increasingly demanding, and bike tours are a unique way to meet all their wants with life-like representations of designs. It’s been proven that 77% of buyers choose to have a VR tour instead of a physical visit, and more than 62% of them would choose the real estate agent that works with VR technology before the one that doesn’t.
Using augmented and virtual reality especially may allow designers to eliminate the constraints they face in the real world. It can enable them to turn a complex design mockup into a prototype in a few minutes, regardless of complexity or scale. Furthermore, interior designers can interact with and manipulate prototypes in infinite ways with VR. Since VR can create virtually anything, it opens a world of possibilities for interior designers. Designers could make a prototype levitate in mid-air so that all the design stakeholders can stand around and share their observations.
There are multiple ways in which augmented and virtual reality could improve the interior design process. Firstly, it reduces costs since it’s much more affordable to simulate a 3D model than to 3D-print a prototype. It is also valuable for collaboration among multiple designers or project stakeholders. Some studies show a 20-30% increase in productivity among design teams. Furthermore, using augmented and virtual reality for interior design improves the learning curve for designers themselves because once they get accustomed to the new technology, the user experience is more straightforward than learning complex design skills from scratch.
These factors ultimately help accelerate the projects and create better business outcomes with just a fraction of the price and time required by traditional design tools.
An AR-based app can assist users in scanning nearby commercial properties they are interested in purchasing and view details such as available offices, amenities, and tenants within the building. These apps can also include a design visualization system and communication interface with marketing agents during construction. A leading real estate marketplace had created an AR property discovery app, which offered a real-time 3D view of properties for sale, interior views, and floor plans. Brochures contained 3D models accessible through the app’s camera scan, resulting in a 30% increase in revenue and expanding the company’s customer base.
