How Virtual Reality Benefits The Real Estate Industry (+Examples)

Virtual reality in real estate is transforming the way the industry operates, offering immersive experiences that enhance property tours, streamline the buying process, and improve customer engagement.

With the ability to provide virtual walkthroughs, 3D modeling, and remote viewing, VR Real Estate Applications allow potential buyers to explore properties from anywhere in the world, reducing the need for physical visits.

This innovation is revolutionizing real estate marketing, making it easier for developers and agents to showcase properties in a more interactive and engaging way.

In this article, we will explore how virtual reality is reshaping the real estate market, enhancing buyer experiences, and improving decision-making efficiency for investors and clients alike.

What is Virtual Reality in Real Estate?

Virtual Reality (VR) in real estate allows potential buyers, renters, or investors to experience a property digitally before visiting it in person.

Unlike traditional photos or videos, VR creates a 3D environment where users can explore the property’s layout, design, and spatial dynamics as though they were physically there.

This technology is primarily used to provide virtual tours, but its applications extend far beyond that.

In real estate, VR is being used for everything from showing luxury homes to creating virtual staging and offering potential buyers the opportunity to personalize homes virtually.

How VR Works in Real Estate:

• 3D Virtual Tours: The most common use of VR in real estate is through interactive, 3D tours that allow potential buyers to navigate through a property at their own pace. They can “walk” through rooms, inspect features, and even change perspectives—offering an experience much more dynamic than photos.
  
  
• Virtual Staging: This involves digitally placing furniture, art, and other design elements in a property to help buyers envision how it might look when fully furnished.
  
  
• Immersive Property Showcases: Using VR headsets, potential buyers can experience an even more immersive tour of a property, including 360-degree views and interactive elements.
  
  

Benefits of Virtual Reality for Real Estate

The use of VR in real estate is providing several key benefits for both real estate agents and potential buyers. These advantages are driving increased interest and adoption of the technology in the industry.

For Buyers:

1. Convenience and Time-Saving: One of the most significant benefits of VR is that it allows buyers to tour multiple properties from anywhere in the world without needing to physically visit each one. Whether you’re a buyer in another country or just across town, this makes house hunting more efficient.
   
   
2. Immersive Experience: With virtual tours, buyers get a much better sense of the layout, scale, and flow of a property than they would from photos or videos alone. Buyers can view a room from any angle, get a true feel for the space, and visualize how it would fit their needs.
   
   
3. Instant Access to Properties: Virtual tours are available 24/7, enabling buyers to explore properties whenever it’s convenient for them. According to real estate statistics, 67% of buyers prefer listings with virtual tours, and 54% won’t even consider viewing a property without one.
   
   
4. Personalization: Virtual reality allows buyers to customize certain aspects of a home, from wall colors to furniture placement, making the viewing experience more personalized and interactive.
   

For Sellers and Real Estate Agents:

1. Increased Engagement: Properties that offer virtual tours receive 87% more views than those that do not. This increased engagement results in more inquiries and greater interest in the property, which can lead to faster sales.
   
   
2. Wider Reach: VR allows real estate agents to market properties to buyers anywhere in the world. This is particularly useful for luxury real estate, where international buyers might want to tour a property remotely before deciding to travel for an in-person viewing.
   
   
3. Higher Closing Rates: Virtual tours help filter serious buyers from casual viewers. Since 50% of buyers prefer virtual tours over static images, these buyers are often more ready to make an offer after a virtual walkthrough. Data shows that listings with virtual tours sell for an average of 9% more and close 31% faster.
   
   
4. Cost-Effective Marketing: VR reduces the need for multiple in-person viewings, saving both time and money for real estate agents. It also minimizes disruptions for sellers, who no longer need to prepare for frequent showings.
   
   

Use of VR in Real Estate

The use of VR in real estate has expanded into several applications, with the primary aim of providing a more engaging and efficient experience for both buyers and agents.

3D Virtual Property Tours

The most popular application of VR in real estate, 3D virtual tours, gives potential buyers the ability to explore a property as if they were walking through it.

These tours offer 360-degree views of the property and allow users to “move” from room to room, change their viewpoint, and even zoom in on specific details.

Example: One famous example is Matterport, a 3D media technology company that enables real estate agents to create high-quality 3D virtual tours. Matterport’s technology is widely used across the real estate industry for both residential and commercial properties.

Virtual Staging

Virtual staging involves using software to furnish a property digitally. This is particularly useful for empty homes that may not show their full potential when unfurnished.

Buyers can see how the property might look with furniture and decor, making it easier to visualize living in the space.

Example: RoOomy is a leading company in virtual staging, allowing real estate agents and homeowners to stage homes virtually without needing to purchase or rent furniture.

VR for Off-Plan Properties

For buyers looking at off-plan properties (those that haven’t been built yet), VR allows them to explore digital models of homes before they are constructed.

This technology helps buyers better understand the layout and design of a future home and even personalize certain aspects of it.

Example: Property developers use VR to sell apartments and houses that are still under construction. Potential buyers can walk through a virtual model of the home, enabling them to make a more informed decision before purchasing a property that isn’t yet completed.

VR for Commercial Real Estate

In commercial real estate, VR is being used to showcase office buildings, retail spaces, and industrial properties. It allows businesses to view properties remotely and assess the suitability of a space for their needs before committing to a visit.

Example: CBRE Group, one of the largest real estate investment firms in the world, uses VR to market commercial spaces, allowing clients to view office layouts, floor plans, and even potential modifications to a space.

How Companies Can Deploy Virtual Reality in Real Estate

Integrating VR into a real estate business can significantly improve how properties are showcased and marketed. Here’s how companies can begin leveraging this technology:

Invest in VR Hardware and Software

To deploy virtual reality in real estate, companies must first invest in the right hardware and software. High-quality VR cameras such as Matterport or Ricoh Theta capture properties in full 3D, allowing potential buyers to explore a space from anywhere in the world.

Additionally, 3D scanning devices can create accurate floor plans and spatial models, providing users with a comprehensive understanding of a property’s layout.

Software platforms like Matterport, EyeSpy360, or TourWizard offer hosting services for these virtual tours and provide interactive elements like hotspots, detailed descriptions, and measurements, making the experience more engaging and informative.

For larger companies, custom VR solutions may be developed, incorporating bespoke software for highly detailed visualizations.

Tools like Unreal Engine or Unity 3D allow for the creation of interactive environments that enable potential buyers to not only walk through a property but also interact with elements, change wall colors, or visualize furniture placement.

These platforms can integrate with VR headsets like Oculus Rift or HTC Vive to offer a fully immersive experience, though tours are typically accessible on desktop and mobile devices for wider reach.

Train Real Estate Agents

The successful implementation of virtual reality requires that real estate agents be trained to use these tools effectively. This training should cover everything from capturing virtual tours to guiding clients through VR experiences in person or remotely.

Agents should be proficient in setting up and explaining VR headsets during in-office viewings and adept at demonstrating the technology’s capabilities, whether the client is using a VR headset or a simple 360-degree desktop tour.

In addition, agents can learn to use the analytical tools embedded in VR software to track which areas of a property clients spend the most time viewing.

This data can be invaluable in tailoring follow-ups and marketing efforts. By being well-versed in virtual reality technology, agents can provide a higher level of service, helping clients envision their future homes in a more vivid, interactive way.

Incorporate VR into Marketing Strategies

To maximize the benefits of virtual reality in real estate, companies should strategically integrate VR into their marketing campaigns.

Listings that feature 3D virtual tours tend to receive significantly more views and generate greater interest than static images or traditional video tours. Highlighting the availability of immersive virtual experiences on platforms like Zillow, Realtor.com, or company websites is essential.

Marketing materials should clearly communicate the value proposition of VR—allowing potential buyers to visit multiple properties virtually before making an in-person appointment.

This is especially beneficial for out-of-town or international buyers who cannot visit properties in person easily.

Furthermore, social media platforms like Instagram, Facebook, and YouTube can be used to showcase VR content, offering viewers a taste of what they can expect from a full virtual tour.

Companies can also consider running targeted ads that promote VR-enabled listings, demonstrating their use of cutting-edge technology to attract tech-savvy buyers.

For luxury real estate, VR can be marketed as an exclusive service, providing remote buyers with a first-class experience that saves them time and makes the buying process more efficient.

Famous Real Estate Companies That Use Virtual Reality

Several prominent real estate companies have embraced Virtual Reality (VR) as a tool to improve the buying and selling process, enhance customer experiences, and streamline property showcases.

Here are a few notable examples of companies that have successfully integrated VR technology into their operations:

Sotheby’s International Realty

Sotheby’s International Realty is one of the largest luxury real estate brands globally and has been a pioneer in using virtual reality to market high-end properties.

Through partnerships with Matterport and other 3D media technology providers, Sotheby’s creates immersive virtual tours for luxury homes, allowing potential buyers to explore properties from anywhere in the world.

This has proven especially useful in marketing properties to international clients who may not be able to visit in person.

Example: Sotheby’s uses VR to showcase its high-value listings, including multi-million-dollar estates in locations like New York City, Los Angeles, and Paris. The use of VR has contributed to a more streamlined viewing process, with 87% more views on listings that include virtual tours.

Redfin

Redfin, an online real estate brokerage, has adopted VR as a tool to enhance their customers’ home search experience.

The company offers 3D home tours for a vast majority of its listings, allowing potential buyers to virtually walk through homes before deciding whether to visit them in person.

Redfin’s use of VR makes it easier for buyers to shortlist properties, saving time and increasing overall satisfaction.

Example: Redfin’s virtual tours have proven to be a significant factor in keeping prospective buyers engaged longer, with studies showing that buyers spend 5-10 times longer on websites with virtual tours compared to those with photos alone.

Zillow

Zillow, a leading online real estate marketplace, has been a key player in incorporating VR technology into its platform.

Through its Zillow 3D Home Tour feature, the company enables real estate agents and homeowners to create their own 360-degree virtual tours.

This tool is highly accessible and affordable, making it a game-changer for agents looking to attract more buyers, especially in competitive markets.

Example: Zillow reports that properties listed with 3D tours receive 48% more interest from buyers and typically close deals faster than those without virtual tours.

CBRE Group

In the commercial real estate sector, CBRE Group has integrated VR to provide immersive virtual tours of office buildings, retail spaces, and industrial properties.

This allows businesses to make more informed decisions by virtually exploring potential spaces before arranging site visits.

VR has helped CBRE streamline the leasing process and attract international clients looking to expand their business in different markets.

Example: For high-profile commercial properties, CBRE offers VR walk-throughs and even virtual interior designs that allow businesses to visualize the potential of the space. This has helped clients make decisions without the need for multiple site visits, saving time and resources.

Matterport

Matterport, while not a real estate company in itself, is a major player in the VR space for real estate. It provides the 3D scanning technology used by many top real estate agencies, including Coldwell Banker and Century 21, to create immersive virtual tours.

Matterport’s platform enables real estate agents to capture every detail of a property and create interactive 3D models that potential buyers can explore from any location.

Example: Properties listed with Matterport 3D tours have a 49% higher likelihood of selling compared to those without. The company’s technology is widely regarded as one of the most reliable and effective in creating immersive real estate experiences.

Impact of Virtual Reality on Buyer Preferences and Sales

Virtual reality is reshaping the real estate industry not only by enhancing how properties are showcased but also by influencing buyer behavior and expectations.

As more consumers become accustomed to digital experiences, virtual tours and VR tools are becoming critical in the property search process. Here are some key statistics that illustrate the impact of VR on the real estate industry:

• Buyer Preferences: According to recent data, 67% of home buyers prefer virtual tours when browsing listings, and 50% of adults have already taken a virtual tour of a property. These figures highlight the growing demand for immersive online experiences in real estate.
  
  
• Listing Performance: Homes with virtual tours receive 87% more views than those without, and potential buyers spend 5-10 times longer on websites with virtual tours. This increased engagement leads to more inquiries and higher interest from serious buyers.
  
  
• In-Person Showings: A virtual tour can help pre-qualify buyers before they visit a property in person. Data shows that 54% of buyers won’t consider viewing a home without first taking a virtual tour, while homes with virtual tours tend to generate 48% more interest.
  
  
• Sales Results: Homes marketed with virtual tours sell for an average of 9% more and close 31% faster than those that rely on traditional photos or videos alone. Additionally, 50% of potential buyers would consider making an offer based solely on a virtual tour.
  
  

Potential Challenges and Future Implications

The real estate sector is swiftly embracing Virtual Reality (VR) and Augmented Reality (AR) technologies. However, there are significant virtual reality real estate challenges to address.

The initial cost, the requirement for specialized gear and training, and the risk of technical issues during VR tours pose obstacles. As these technologies evolve, professionals in the real estate world need to seamlessly incorporate VR to retain their competitive edge.

The future of VR in real estate is bright, offering more immersive experiences. Reports suggest that by deploying VR for property walkthroughs, the necessity for in-person visits decreases significantly.

This not only saves on resources but also streamlines the process for everyone involved. Real estate experts using VR see augmented interest from potential buyers. With the broader adoption of VR and AR, the way property sales and marketing strategies are executed will experience a noteworthy shift.

AR and VR’s influence in real estate surpasses virtual tours and property previews. AR allows potential buyers to visualize furniture arrangements and decor ideas, aiding in better decision-making.

Strategies that utilize AR and VR, like 3D brochures and virtual visits, attract a larger pool of viewers and generate more qualified leads.

Additionally, their inclusion in social media and online campaigns increases property listing engagement. These technologies are at the forefront of making real estate deals smoother, from remote viewing to online signing. For a deeper dive, visit SearchMyExpert’s blog on AR/VR in real estate.