CEO & Co-Founder of HAP Investments and CEO of HAP Construction.
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Real estate developers are often slow to adopt new ways to market their projects. However, the challenges caused by Covid-19 have led many to embrace innovative technologies that are helping them achieve their goals. While most of this technology has been available for years, it continues to be developed and improved.
Before the pandemic, the general sentiment in our industry was “if it isn’t broke, don’t fix it.” Most developers would (and often still do) follow the same playbook: Launch a project, and provide some basic information on unit size, amenities and design; then let the brokers take care of the rest. However, this way of doing business is becoming less likely to produce the desired results in today’s environment.
Below are four tools developers can use to successfully market their buildings to potential buyers and renters in a coronavirus world. The implementation of these strategies started long ago, but the pandemic gave them a big boost.
1. Virtual Reality
During the pandemic, developers have increasingly relied on virtual reality (VR) and 3D images. In fact, 3D home tours have replaced in-person showings in many areas. Following growing demand, Urban District Realty announced it would begin licensing its VR tool PROJETO, which puts clients in a representation of an unbuilt property. Another platform called Augmind, which utilizes “mixed reality” (the merging of real and virtual worlds), enables users to remotely design an apartment with different furniture, lighting, appliances and other accessories. Thanks to tools like these, many people no longer consider it necessary to physically visit a sales office before buying or renting an apartment.
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2. Project Websites And Applications
Developers are increasingly creating enhanced websites and iOS applications that provide a wealth of information regarding a property and its surrounding neighborhood, schools, entertainment options, restaurants and demographics as well as recent sales and availability in the market. One example is the soon-to-be-completed luxury residence Brooklyn Point, a project with a robust website of information and helpful tools, including a local map and nearby shopping options.
3. Social Media
Social media has also become an increasingly important tool for developers and their brokers, especially when marketing to a younger demographic that may not look at traditional media and advertising. For developers utilizing social media, it is important to maintain a regular presence on multiple channels, including Facebook, Instagram and YouTube, to reach a diverse audience. Increasingly, LinkedIn is also being used to market new developments.
4. Automation
Other services that were traditionally handled in person are now being supplemented or replaced by automation tools such as bmby, one of a number of platforms on which developers can create websites and applications to navigate the marketing and sales process, from showing a building with 3D virtual reality and images to contract signings. New properties are also including more automated services to remotely handle such tasks as monitoring visitors and deliveries, facilitating tenant communication and identifying potential maintenance issues.
Another important trend to note is the rise of transparency in real estate transactions. With the growth and popularity of online listing platforms like StreetEasy and Zillow, it is more important than ever to maintain accurate marketing materials and information, including pricing, apartment sizes and building images.
After the crisis, most consumers will likely want to visit projects in person again. However, many of the tools that have made it easier to search for a new place to live during the pandemic will continue to supplement the physical experience because people have come to expect more information and transparency before taking the next step.
Developers are also realizing the benefits of this ongoing transformation. While there is an added cost to implement new technologies, there may be less of a need for expensive on-site sales galleries going forward. More importantly, owners will be able to better connect with buyers and renters before they decide to visit in person. On the other hand, developers that do not embrace new technologies and greater transparency may find it harder to be successful.
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