Real estate has been a crucial sector in the global economy for centuries. It has evolved significantly over time, with the emergence of modern real estate practices in the 20th century leading to substantial changes in the way real estate is transacted.

Traditional real estate practices relied on personal connections, local knowledge, and in-person communication, while modern real estate leverages technology and data to streamline the process.

According to a report by The National Association of Realtors it was found that 97% of home buyers use the internet in their journey towards buying a home. 7% of real estate developers in India use social media for lead generation, while 70% use it for professional networking and marketing.

Here are some key differences between traditional and modern real estate practices

• Lead Generation
• Marketing and Advertising
• Virtual tours
• Branding
• Improved accountability
• Increased Transparency

Lead Generation

Lead generation in real estate before the digital era relied on personal referrals, networking, and local advertising, while lead generation today is heavily focused on digital marketing, social media, email marketing, video marketing and referral marketing.

Modern lead generation methods in real estate have evolved significantly in recent years, thanks to the rise of digital advertising, content marketing, social media, and referral programs. By leveraging these tools effectively, real estate professionals are able to generate high-quality leads for their business.

Marketing and Advertising

Traditional real estate marketing often relied on print ads, flyers, and word-of-mouth referrals. Real estate developers today are using social media platforms, Email marketing tools, PPC marketing, Search Engine Optimization, Influencer marketing and virtual tours to target specific audiences, showcase properties through photos and videos, and engage with potential clients in real-time.

Virtual Tours

Real estate companies relied on physical property tours, while modern real estate practices today increasingly rely on virtual tours. Facebook and Instagram have become popular platforms for virtual property tours, allowing potential buyers to experience properties remotely to get a better sense of the space before scheduling an in-person visit.

Branding

Traditional real estate branding relied heavily on personal networking, local presence, reputation, and word-of-mouth referrals. Agents focused on building personal relationships within the community and establishing themselves as trusted experts through offline marketing methods.

On the other hand, modern real estate branding leverages digital platforms, online marketing strategies, and data-driven insights. It emphasizes a strong online presence, utilizing social media, websites, and digital advertising to reach a broader audience.

Increased transparency

Traditionally in real estate there used to be a lot of inconsistency in pricing, commotions of real estate agents, limited information about the property in terms of construction status, handover dates, and lack of standardization of transactions

Developers are now required to register their projects with RERA and provide detailed information about the project, including its status, construction progress, and any approvals related to transactions. This has made it easier for buyers to make informed decisions throughout the homebuying process.

Note – RERA (Real Estate Regulatory Authority) is a government-established body to regulate the real estate sector. It aims to ensure transparency, accountability, and consumer protection. RERA mandates registration and licensing of professionals and projects and enforces disclosure of project details. By upholding these regulations, RERA fosters a fair and trustworthy real estate market.

Improved accountability

RERA has made developers more accountable for their actions. Developers are required to complete their projects within the specified timeline and are liable to pay compensation to buyers in case of any delays or defects. This has made developers more responsible and has reduced the incidence of project delays.

While modern practices have given way to several advantages as discussed, traditional real estate still has its place, especially in areas where face-to-face interaction and personal relationships are highly valued. Ultimately, the choice between traditional and modern real estate will depend on the specific needs and preferences of Real estate companies.