Is implementing augmented reality to market real estate the right step? What good does it do?
As a property business owner, have these thoughts ever crossed your mind? If so, you’re in the right place!
In this article, as your loyal partner, we’ll explain the advantages and disadvantages AR has for your business.
Let’s get into it!
How Does Augmented Reality in Real Estate Marketing Benefit You?
Augmented reality has a huge potential as a reliable property marketing tool. This is because augmented reality has several advantages:
A More Interactive Property Viewing Experience
Yes, augmented reality can grant your clients a far more interactive experience in viewing their dream property. With AR, your clients are able to virtually explore distant properties, as if they are onsite, with realistic and detailed images.
AR also allows clients to try replacing some designs on the property to cater to their tastes while viewing the property. This brings clients a step closer to obtaining a property that suits them.
Your clients can enjoy all of these applications without having to travel to the property location. Consequently, clients from farther areas will also be able to view the condition of the properties you offer.
Therefore, this method is capable of providing a far more interactive and efficient experience. According to Klapty, multiple property developers have boosted their sales up to 48% using AR.
This is because clients believe that augmented reality gives them a more interactive and thorough experience compared to using photos or videos alone.
Facilitating Market Expansion Without Geographical Boundaries
Previously, we mentioned that with AR, clients can view your properties without having to travel onsite.
With this flexibility, you can utilize this feature to expand your market to multiple regions as geographical boundaries are no longer an issue.
To implement this, you only need to share AR content on various social media channels or an easily accessible website. Then, clients will be able to see your properties with augmented reality through their phones.
This is much more efficient than marketing properties traditionally to expand your market to multiple regions.
This statement is also backed by momentumvirtualtour, which stated that property developers succeed in increasing their sales to 63% from remote clients that have yet to visit the properties in person.
Expanding your market in different regions without having to travel long distances and spending money for printing sounds exciting, doesn’t it?
Helping Clients in Making an Informed Decision on Property Transaction
Remember how augmented reality can interactively display a realistic visualization of the property? This indirectly helps clients obtain robust information to back their decisions.
Yes, with augmented reality marketing, clients enter the realistic visualization of the property. From there, they will be able to inspect and understand every detail of the property, which will help them decide whether they will proceed to the transaction phase.
This advantage is also backed by a report by digitalintheround which stated that 75% of clients make decisions based on the information provided by augmented reality.
Similarly, llcbuddy reported that 54% of clients refuse to buy a house without augmented reality, since the information provided is not on par with that of augmented reality.
Spending Less Budget For More Profit
Expanding your market without geographical boundaries and helping clients in making an informed decision. These advantages we previously mentioned lead to one thing, which is to minimize spending for maximized results.
Without augmented reality, let’s break down how much you would have to spend. To market your properties in various regions, you have to rent large billboards, which can be costly.
Not to mention you may have to hold an exhibition in the region so the residents in the area notice the presence of their business. Holding an exhibition also requires a lot of budget, right?
Further, without augmented reality, you might have to travel several times to the property to accompany your clients in viewing it in person.
Yet the multiple travels don’t guarantee them to immediately make a decision, right? From this breakdown, you could only imagine just how much you have to spend.
With augmented reality, you can achieve all of these efficiently. You only need to input properties into augmented reality. Then, marketing can go smoothly and be easily accessed from your clients’ phones.
Increasing the Competitive Value of Your Business
Believe it or not, implementing augmented reality can strengthen the competitive value of your business, especially in this digitized modern business era.
This is also reported by digitalintheround, which stated that 83% of property developers who implemented augmented reality claimed that the use of AR increases their competitive value. Furthermore, 74% of them succeeded in attracting more clients compared to businesses that do not implement AR.
With everything going digital, this shift changes the market’s buying behavior as they prefer practicality. rodedwards backed this up by reporting that 87% of people who purchase properties choose developers with AR as they provide ease in viewing their properties.
So, are you interested in using augmented reality?
What Are the Disadvantages of Implementing Augmented Reality?
Indeed, AR implementation helps increase efficacy in real estate marketing. However, this does not mean AR is without its flaws.
Therefore, what are some notable disadvantages of implementing AR?
- Inconsistent Levels of Digital Literacy in Indonesia
Remember that augmented reality is a technological innovation. Therefore, AR implementation is highly reliant on digital technology. However, it’s important to note that there is a gap in digital literacy in Indonesia.
As stated by CNBC Indonesia, the rate of digital literacy in Indonesia merely reaches 62%. This figure puts Indonesia at the bottom among other Southeast Asian countries, which amounts to an average of 70%.
With this condition, you might want to thoroughly review this before implementing AR as a real estate marketing tool in Indonesia.
- Like Digital Literacy, Internet Speed is Not Yet Widespread in Indonesia
Aside from being highly reliant on technology, augmented reality also requires internet connection to work smoothly. However, like digital literacy, internet speed is not yet prevalent.
According to wantiknas, Indonesia’s internet speed ranks 101st out of 141 countries. As a comparison, Singapore is at #23 and Malaysia is at #30.
Nevertheless, augmented reality still works well in certain regions in Indonesia. But it may not work as well in regions where the internet is slower.
- Every Client Has Their Own Preferences in Learning About Your Properties
Although augmented reality makes it easier to learn about properties, keep in mind that every client has different preferences. In this case, there are clients who prefer to travel onsite over using AR.
Therefore, you need to realize that using AR does not stop clients from asking you to accompany them on the spot.
- High Implementation Cost
Indeed, to use AR, you need to collaborate with a vendor to produce AR content. This process takes a lot of time and money.
This is because producing AR requires an advanced difficulty and a highly skilled technician. That being said, considering the breadth of its benefits, the implementation cost will be worth it.
- Perception Issues May Arise
AR may be able to realistically visualize your properties. However, errors in perception may still occur.
What does this mean? How the property looks in the AR may not look 100% the same in person. For example, the colors of the walls and the room area may look different in AR compared to in real life.
This can lead to a difference in expectation upon buying your property. That said, this step can be anticipated by choosing a high-quality vendor. As a result, your AR will feature high onsite accuracy.
So, Is Implementing Augmented Reality A Good Choice?
Considering the advantages, AR is surely an effective marketing tool that you need. With AR, you’ll be able to cut corners on marketing costs.
The rest of your budget can be allocated for other necessities, such as developing a new property plan to expand the network of your property business in various regions.
Additionally, gradually implementing interactive AR will result in the public viewing your business as innovative and creative. This will add to the competitive value of your business in this digitized modern business era.
How to Implement Augmented Reality to Market Real Estate
For your AR implementation to go smoothly, you’ll have to keep an eye on marketing strategies that promote both its advantages and disadvantages.
For instance, as a response to lower digital literacy levels in Indonesia, you can create educational content about AR on social media.
Why use social media? According to RRI, the amount of social media users in Indonesia in 2024 has reached 191 million or around 73% of the national population. This makes social media the perfect platform to create educational content about AR.
Then, what kind of content should you make? You could start with introducing your audience to AR, how to use it, its benefits, and more.
This method not only allows you to combat low digital literacy in Indonesia, but will eventually shift the public preference from viewing properties in person to doing so in AR thanks to its efficacy.
Furthermore, you can work together with a high-quality vendor so your AR content is accurate, preventing the possibility of perception issues.
Bring A More Interactive Experience into Your Real Estate Business with InReality!
Before implementing augmented reality for real estate marketing, it’s important to choose a highly qualified vendor to create a realistic and optimal AR experience.
With this in mind, we at InReality would happily collaborate with you to make your business marketing strategies more interactive than ever!
We’ve handled 125 projects in 2 years and are acknowledged by top AR developers in the world: Clutch and Goodfirms.
So, not only are we capable of helping you, but we’re also a business partner you can rely on!
Call us now to turn your vision of interactive marketing into reality!
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