Investing in Real Estate: How Digital Platforms Are Changing the Game

The rise of digital platforms has significantly altered the landscape of property investment, offering tools and insights that were once unimaginable.

As technology continues to advance, these platforms are becoming indispensable for investors seeking to streamline their research, make informed decisions, and execute purchases with greater efficiency. To explore this transformation, we asked industry experts to share their perspectives on how digital platforms are reshaping the way investors approach property investments.

Making property investment more accessible and efficient

The digital transformation in real estate is significantly boosting the accessibility and efficiency of property investment, says David Stanford, co-founder and enterprise managing consultant at RealFoundations, a provider of management consulting and managed services for the commercial real estate industry. He highlights how these platforms are streamlining the entire investment process: “These platforms offer streamlined processes for researching properties, conducting virtual tours, and completing transactions online. The integration of advanced technologies, such as AI and data analytics, allows investors to make more informed decisions based on real-time market data and trends. “Additionally, digital platforms facilitate better communication and collaboration between investors, property managers, and other stakeholders, enhancing the overall investment experience. As a result, investors can navigate the property market with greater ease and confidence, leading to more successful investment outcomes.”

Empowering investors with data-driven location insights

Location data is becoming increasingly vital for making informed investment decisions, according to Vincent-Charles Hodder, co-founder and CEO of Local Logic, a location intelligence platform that provides insights on the built environment. “Digital platforms are changing the way investors research and buy property investments by providing access to comprehensive location data, enabling better-informed investment decisions and making it easier to compare different investment opportunities,” he says. “These platforms streamline the research process by offering real-time location insights and trends, allowing for more efficient decision-making. Additionally, digital platforms broaden investors’ horizons by enabling them to explore and invest in diverse markets through remote access to detailed location data.”

Transforming property investment with advanced digital tools

Jimmy Theodorou, real estate partner at law firm Reed Smith, explores how digital platforms are equipping investors with powerful tools that simplify research, enhance decision-making, and open up new avenues for property investment. He highlights several key innovations that are driving this transformation:

1. Enhanced property search and comparison: “Digital platforms provide investors with extensive data on property values, historical performance, market trends, and demographics, enabling thorough research and informed decision making. This transparency reduces information asymmetry, allowing both seasoned and novice investors to make better investment choices.”
2. Virtual property tours and remote transactions: “Technologies such as VR and AR have revolutionised the real estate investment process, enabling investors to take virtual tours of properties from anywhere in the world. Digital platforms allow investors to complete the entire buying process online, from initial research to closing the deal. This not only eliminates the need for physical visits, saving time and resources, but also sets the stage for investors to diversify their portfolios beyond their local region.”
3. Automated valuation models (AVMs) Automated Valuation Models use algorithms and data analytics to provide instant property valuations based on comparable sales, market conditions, and other factors. These models offer investors a quick and reliable way to estimate a property’s value, supporting faster decision-making and negotiation processes.
4. Crowdfunding and tokenisation of real estate Investors can now access international property markets easily, buy fractions of high-value assets, and diversify their portfolios with lower capital. This process also facilitates the creation of new investment products, such as tokenised real estate funds and DeFi applications, providing novel ways to invest and manage risk in real estate. Crowdfunding and P2P platforms democratise property investment by allowing investors to pool their resources and invest in properties collectively.”

Leveraging AI, VR, and blockchain for smarter investment decisions

Digital platforms are not just making information more accessible – they’re also leveraging advanced technologies like AI, VR, and blockchain to enhance the investment process, explains Lee Travers, a strategist for the fintech, payments and banking sectors. “Through comprehensive online databases, investors can perform detailed market analysis, compare properties, and access historical data, all from a single interface. AI-powered analytics and machine learning algorithms provide insights into market trends, property valuations, and risk assessments, enabling investors to make informed decisions quickly. “Virtual reality (VR) and augmented reality (AR) technologies allow investors to conduct virtual property tours, saving time and travel costs while providing a realistic view of potential investments. Digital platforms also streamline transactions with secure, transparent blockchain-based processes, reducing the risk of fraud and enhancing trust. “Additionally, crowdfunding platforms democratise property investment, allowing investors to participate in fractional ownership of properties, thereby diversifying their portfolios with lower capital requirements. These innovations collectively make property investment more accessible, efficient and data-driven, transforming traditional investment approaches.”