(This is part 2 of a series on immersive technologies and decision-making, part of a keynote given by our Co-CEO Emanuel at LEAP in March 2024 - access part 1 here).
Buying a home is a big decision, often driven by emotion. This is especially true for off-plan properties, where buyers cannot see the finished product. Understanding these emotions can help real estate developers improve their customer’s experience, in turn driving sales. This blog explores how emotions drive these decisions and how immersive technologies such as virtual reality (VR) and augmented reality (AR) can enhance the buyer journey.
Home buying is not just about location or a mortgage. It's about feeling excited, secure, and happy. People imagine their future lives in the homes they are considering. It is where their family will grow, where memories will be made. According to the Journal of Real Estate Research, how a property is presented for sale can greatly influence buying decisions. This is crucial for off-plan properties, where buyers cannot physically see or visit the home yet.
Consider a couple looking to buy their first home in the GCC. They are attracted to the idea of a luxurious lifestyle, imagining themselves enjoying the amenities and prestige. Their decision is based on more than just floor plans or location; it's about the emotional connection to their future life, how the development will make them feel like they belong. Factors such as the design, the ‘look and feel’ and the ambience of a property are crucial in determining whether a certain apartment or house will become a home.
VR and AR are powerful tools that can evoke strong emotions. They allow potential buyers to see and feel their future homes in a realistic way. A study by the Real Estate Institute found that 75% of buyers prefer virtual tours before making a decision because it helps them emotionally connect with the property. Simply put, immersive technologies create this stronger emotional bond by making the viewer feel as if they were there. It is this immersion that excites the senses at the psychological level.
Immersive experiences such as virtual tours offer a freewalking, 360 view of the property, making buyers feel like they are actually there. For example, Ellington Properties in Dubai used VR to create a lifelike experience of a new development. From a new experience center at the company’s offices, prospective buyers could get a feel of what life will be like in this new community. They could walk through the various communal areas and homes in VR. Lifelike elements and interactions further completed the immersive experience.
AR can add furniture and decor to empty spaces, helping buyers see the potential of their future home. They can change wall colours, swap furniture, and see different lighting options. This personalization helps buyers feel more connected to the property, by giving them control. This control over the buying experience translates in a heightened emotional bond with the property.
During the COVID-19 pandemic, many developers used virtual showrooms to showcase their properties. Sobha Properties for example allowed buyers to explore properties in a detailed, immersive environment without leaving their homes. This approach provided a richer, more engaging experience and helped increase sales.
Some real estate firms use AR apps to make their physical 2D brochures come to life. Prospective buyers can point their smartphones at the brochure and see a 3D model of the property spring up in the room. They can walk around the model, zoom in on details, and see different floor plans. This interactive experience makes the marketing materials more engaging and memorable.
When buyers can interact with a property in a virtual environment, it creates a sense of presence and ownership. This emotional connection can be a deciding factor in the purchase decision. According to the MIT Real Estate Innovation Lab, immersive technologies can increase emotional engagement by up to 50%. Other studies even point to more than double increase in some cases.
Immersive experiences can also add elements of playfulness and imagination, making the buyer's journey enjoyable. Some virtual tours include moving clouds, birds, or interactive furniture. Spatial audio can also further immerse the viewer, with location based sounds. These elements stimulate the buyer's imagination and create a more memorable experience. A study from the Journal of Retailing and Consumer Services found that playfulness in virtual tours positively influences buyers' attitudes towards properties and their intent to purchase.
Using immersive technologies can give developers a competitive edge. These technologies help create emotionally engaging experiences, attract more prospects, and improve customer satisfaction. This leads to higher conversion rates and better sales performance.
Immersive technologies can provide valuable data and analytics. By analysing how buyers interact with virtual tours and other immersive experiences, developers can understand buyer preferences and behaviours. This data-driven approach helps developers make informed decisions and tailor their offerings to meet buyer needs. For example, by tracking which features of the experience were most engaged with, they identified key selling points. This information helped refine their marketing messages, leading to more targeted and effective campaigns, and an increase in qualified leads and sales.
Emotions play a huge role in big purchase decisions, especially in real estate. By understanding and leveraging these emotions, real estate developers can create more engaging and compelling buyer journeys. Immersive technologies like VR and AR amplify these emotions, helping buyers connect deeply with off-plan properties.
For developers interested in leveraging these technologies for their off-plan properties, we encourage you to reach out to us. Our team specialises in creating bespoke immersive experiences solutions that align with your specific project needs and marketing goals.
Implementing these technologies can transform the way you engage with potential buyers, making their journey more immersive, emotional, and successful.
