In 2016, India experienced an unprecedented phenomenon. Streets were bustling with individuals aimlessly navigating with their mobile devices. Law enforcement officers cautioned against playing the game outdoors due to safety concerns. This phenomenon was the result of Pokemon Go, a game that seamlessly merged the virtual and real worlds through Augmented Reality (AR) technology, captivating the nation upon its release. Fast forward to 2024, and Virtual Reality (VR) headsets like the Apple Vision Pro are making headlines.
Virtual Reality (VR) is wholly immersive, replacing your visual surroundings, whereas Augmented Reality (AR) enhances your real-world environment. These technologies are converging to form what is known as mixed reality, where VR headsets incorporate AR features into their functionality.
Both VR and AR have seen significant investment over the last decade. A report by Deloitte from last year projects that the metaverse which includes AR and VR could generate a stupendous figure of $800 billion in global revenue by this year, while a McKinsey report predicts the global value of the metaverse to reach an astonishing $5 trillion by 2030.
While gaming, healthcare, education, tourism and e-commerce are among the major adopters of VR and AR, real estate is an industry that is increasingly using this technology to create unique immersive experiences for buyers. A recent survey by Perkins Coie estimates that the real estate sector is among the top five sectors to receive the most VR/AR-related investment in the coming years, while another report from Goldman Sachs predicts that the global VR market in real estate is expected to generate $2.6 billion by 2025.
The real estate sector is using AR and VR in many different ways. AR and VR are also empowering architects and interior designers with technology to transform 2D plans into 3D virtual models. The technology allows them to visualize and collaborate in real-time even across different locations. The game-changing process lets them test features and check for problems without needing to first physically build in the real world.
Another application with great potential is in enhancing the customer experience. Using VR, the customer is no longer restricted by the traditional confines of a real estate office or site visits that are tiring and take up a lot of time. They can experience immersive home-buying with 3D walkthroughs across many different properties without a physical visit or going through a flat boring brochure. This approach is redefining the very basis of customer engagement and property presentation.
With a VR headset, customers can be virtually transported to the properties even from the comfort of their homes. With a three-dimensional view, the virtual tour allows the customer to get a better sense of the design, size and dimensions of the property as compared to a brochure. This saves them valuable time and effort by facilitating remote walkthroughs and letting them narrow down on a property to visit physically.
Director
The Guardians Real Estate Advisory.
The adoption of AR and VR technologies in real estate not only bridges the gap between purchase and possession but also enhances the process through customisation and continuous engagement. Most people have experienced AR on e-commerce sites that allow us to use our smartphone to picture how a product such as a sofa would look in our room or a TV would look on our wall. The same technology allows customers to explore various home designs and modifications, creating a personalised vision of their future space. They can picture how furniture or fittings would look in their new home, even allowing them to play around with options till they get a fix on what looks best.
A survey of home buyers in the US showed that three out of five home shoppers would be willing to purchase a home after only a virtual tour with two-thirds feeling that virtual visits offered a good view of the most important areas of a home. This shows the potential that VR and AR have in the Indian real estate sector.
The real estate sector in India is the second-highest employment generator. It is estimated that the sector will rise from US $200 billion and contribute 7% to India’s overall GDP in 2021 to US $1 trillion by 2030 with contribution to the national GDP increasing to 10%. If the real estate sector is to gain optimally from this huge potential, it is imperative to integrate AR and VR into their processes from concept and design to sales and marketing. For the Indian home-buyer, seamlessly merging technology with the conventional will enrich their buying journey, making AR and VR an indispensable asset in the real estate toolkit.
