How Real Estate Tech is Eliminating Industry Inefficiencies

The real estate industry has long faced a number of challenges, such as information asymmetry and analog business practices.

These "irrational" structures have not only damaged the customer experience, but have also hindered productivity improvements in the industry as a whole.

In recent years, however, a wave of technology called "real estate tech" is bringing about a sea change in these old structures.

In this article, as a representative of INA & Associates, Inc., I will shed light on the irrational aspects that persist in the real estate industry and explain how technology can eliminate them and open up the future of the industry in a professional and easy-to-understand manner with specific examples.

Through this article, we hope that real estate professionals as well as general consumers who are considering real estate investment or purchasing a home will gain a sense of the future of real estate.

The reality of "irrationality" that persists in the real estate industry

INA & Associates, Inc., of which I am the president, is a "human capital investment company" that pursues the growth and enrichment of all people involved.

When I look around the current real estate industry from this perspective, unfortunately, I see many "irrational" points.

These are not mere inefficiencies, but serious problems that lead to lower customer satisfaction and employee exhaustion, and ultimately impede the development of the industry as a whole.

Analog-centric business processes

In real estate transactions, paper-based contracts and important item descriptions are still the norm.

Creating, signing, sealing, and storing a vast amount of paperwork takes a great deal of time and effort, and is a breeding ground for human error.

In addition, in many cases, property information management relies on Excel files and paper documents in the hands of individual staff members.

This creates an irrational situation in which information sharing within the company is slow, making it difficult to respond to customers promptly.

In particular, in the preparation of contract documents, similar information must be manually input many times, each time creating the risk of typographical errors and omissions.

In addition, it frequently takes time to locate past contracts, making it impossible to respond immediately to customer inquiries.

Structural Problem of Information Asymmetry

Because real estate is a highly specialized field, there is an information gap, or "information asymmetry," between real estate companies as sellers and lenders and consumers as buyers and borrowers.

In some cases, this structure has led to unfavorable transactions and opaque pricing for consumers.

For example, a situation in which a consumer does not know the fair price of a property and ends up purchasing it at a price higher than the market price is a typical example of the problems caused by this irrationality.

In real estate transactions, there is a great deal of information that is difficult to grasp unless one is a specialist, such as information on property defects, changes in the surrounding environment, and future prospects for property values.

It is not easy for ordinary consumers to obtain such information, and as a result, the real estate company can proceed with negotiations from an overwhelmingly advantageous position.

This situation undermines consumer confidence and tarnishes the image of the industry as a whole.

Personnel turnover and long working hours

Sales activities in the real estate industry remain strongly "geriatric" in nature, relying on individual experience and intuition.

Work is concentrated on the best salespeople, and their know-how is not shared throughout the organization, which inhibits organizational growth.

As a result, excessive burden on certain employees and long working hours have become the norm, contributing to the high turnover rate.

In my opinion, this is an extremely irrational situation that leads to the loss of a company's most important asset, its "human capital.

In particular, in the training of new employees, on-the-job training (OJT), in which trainees learn by accompanying senior employees, is the main method of training because there is no manualized know-how.

However, senior employees themselves are also very busy, so they do not have enough time for training, creating a vicious cycle that delays the growth of new employees.

In addition, when a talented sales representative leaves the company, the company loses the customer information and know-how he or she had, resulting in a significant loss to the company.

Real Estate Tech's Potential to Eliminate "Irrationality

RealEstateTech has the potential to fundamentally change the irrationality of the industry.

RealEstateTech is a generic term for initiatives that aim to solve real estate-related issues and create new value by utilizing advanced technologies such as AI (artificial intelligence), IoT, and VR/AR (virtual reality/augmented reality).

Transformation brought about by real estate tech

Real estate tech offers solutions to the aforementioned industry issues through a multifaceted approach.

For example, electronic contracting systems eliminate the need for paper and stamps, dramatically streamlining the contracting process.

Customer relationship management systems (CRM) and sales force automation (SFA) systems enable centralized management of customer information and case progress, preventing the use of a single person and enabling organized sales activities.

In addition, online appraisal services utilize big data and AI to instantly calculate the appropriate price of a property, eliminating information asymmetry.

This allows consumers to grasp the market price of a property on their own, enabling fairer transactions.

Furthermore, virtual tours utilizing VR and AR provide a new customer experience, allowing customers who live far away or have time constraints to view properties from the comfort of their own home.

Diverse Services in the Real Estate Tech Chaos Map

The Real Estate Tech Chaos Map, published by the Real Estate Tech Association, provides an excellent visualization of the expansion and diversity of this field.

The latest 11th edition, released in August 2025, shows 528 services grouped into 15 categories, indicating the rapid growth of the market.

This is strong evidence of how technology is penetrating every corner of the real estate industry.

The services listed in the Chaos Map cover all aspects of real estate, from transactions to management, investment, and construction.

With the right combination of services, real estate companies can significantly streamline their operations and improve customer satisfaction at the same time.

Specific Effects of Using Technology

The introduction of real estate technology is not limited to simply improving operational efficiency; it can also lead to an improved customer experience and the creation of new business models.

For example, a property management company has reported a 40% reduction in response time as a result of introducing AI chatbots to its call-handling operations.

Another example is Matterport's virtual tours using 3D scanning technology, which have had an astonishing 40% increase in contract signing rates.

These examples illustrate how technology can create an environment in which the most precious resource, time, is created and employees can focus on more value-added, creative work.

This is the break from irrationality and the future of real estate that we should strive for.

Furthermore, by dedicating the time created by operational efficiency to client dialogue and more sophisticated consulting, we can simultaneously improve client satisfaction and enhance the company's competitiveness.

In addition, the accumulation and analysis of data will make it possible to predict market trends and gain a deeper understanding of customer needs, enabling strategic business decisions to be made.

Special attention: DX in the real estate industry accelerated by generative AI

Of all the real estate tech, the use of generative AI is currently attracting the most attention.

The applications range from automatically generating property descriptions and advertising copy to building AI chatbots that respond to customer inquiries 24 hours a day, 365 days a year.

In fact, according to one survey, approximately 70% of real estate companies are willing to utilize generative AI, especially for "creating property introductions and advertising copy.

Specific Uses of Generative AI

Generative AI is used in a variety of situations in the real estate industry.

First, in the creation of property introductions, attractive and easy-to-understand introductions can be automatically generated simply by entering information on property features and the surrounding environment.

This allows sales staff to spend much less time on writing, allowing them to introduce more properties more efficiently.

In addition, AI chatbots respond to customer inquiries 24 hours a day, 365 days a year, immediately answering frequently asked questions.

This allows customers to make inquiries without worrying about time, while sales representatives can focus on complex questions and important business discussions.

In addition, generative AI is also used in the creation of contracts and important matter descriptions.

AI, which has studied data from past contracts, automatically generates appropriate contracts simply by entering the necessary information.

This shortens the time required for creation and reduces the number of errors in the descriptions.

INA&Associates' Approach

As a company that fuses technology and human imagination, we at INA&Associates have high expectations for the potential of generative AI.

By delegating simple tasks to AI, our "human resources" will be able to spend more time with each client and provide higher quality consulting services.

We are convinced that this is the way to truly improve the customer experience through the use of technology.

We position technology not as a mere tool to improve efficiency, but as a partner to maximize the capabilities of our "human capital" and provide the highest value to our clients.

While we are proactively introducing the latest technologies, including AI, we believe that the final decision-making process and the building of trusting relationships with our clients should be carried out by human beings.

Learning from Successful Cases of Real Estate DX

Numerous successful cases of real estate DX in the real estate industry have been reported both in Japan and overseas.

From these cases, you can learn the specific effects of technology implementation and the key points for success.

Successful Cases of Domestic Companies

A major Japanese real estate company implemented a customer management system to centrally manage customer information and visualize sales activities.

This has facilitated the sharing of information among sales representatives and improved the quality of customer service.

In addition, a medium-sized real estate company reduced the time required for contract work to less than half of the previous time with the introduction of an electronic contracting system, greatly improving customer convenience.

Furthermore, a property management company introduced a remote property monitoring system that utilizes IoT sensors, enabling early detection of abnormalities in facilities.

This has simultaneously reduced repair costs and improved tenant satisfaction.

Advanced Examples of Overseas Companies

More advanced real estate tech is being utilized overseas.

Matterport, a U.S. company, has revolutionized the real estate industry by offering a virtual tour service that utilizes 3D scanning technology.

This service allows customers to experience a property as if they were actually visiting it from the comfort of their own home.

And CBRE in the U.S. has implemented a smart building management system that utilizes AI and IoT to improve energy efficiency and increase occupant comfort.

These examples illustrate the tremendous potential that technology can bring to the real estate industry.

Challenges and Measures to Implement Real Estate Tech

While there are many benefits to implementing real estate tech, there are also several challenges.

Understanding these challenges and taking appropriate measures are keys to successful implementation.

Initial investment and cost issues

Introducing real estate tech requires a certain amount of initial investment, including the cost of purchasing the system and consulting fees associated with its introduction.

For small and medium-sized real estate companies in particular, this initial investment can be a significant burden.

In recent years, however, an increasing number of SaaS (cloud-based) services have become available, and many tools can be used for as little as several tens of thousands of yen per month.

By first clarifying your company's issues and starting the implementation on a small scale, starting with specific operations, you can verify the effectiveness of the system while minimizing risk.

Employee Resistance and the Need for Education

In many cases, employees show resistance to the introduction of new technology.

In particular, employees who have been working in an analog manner for many years may find it burdensome to learn how to operate a new system.

To address this issue, it is important to provide sufficient training and a support system.

The key to success is to clearly explain the purpose and benefits of the system and to gain the understanding and cooperation of employees.

It is also important to select a system that is easy to operate and intuitive to use.

Data Security and Privacy Protection

With the introduction of real estate tech, important data such as customer and property information will be digitized.

Proper management and security of these data is critical.

To minimize the risk of data leaks and unauthorized access, a highly reliable system should be selected and appropriate security measures taken.

It is also essential to comply with relevant laws and regulations, such as the Personal Information Protection Law, to protect customer privacy.

Conclusion: The fusion of technology and "human capital" will create the future.

This article has explained the "irrational" aspects of the real estate industry and how real estate tech can resolve them.

The real estate industry's challenges include analog operations, asymmetric information, and gerrymandering, all of which are impediments to improving productivity and customer satisfaction.

As the role of real estate tech, technologies such as AI and VR can solve these issues and improve operational efficiency andcustomer experience.

As the chaos map shows the expansion, diverse services are emerging and the industry-wide real estate DX is accelerating.

Looking to the future, technology is more than just a tool to improve efficiency.

It is an irreplaceable partner for us real estate professionals to provide more human values, namely "trust" and "security.

The evolution of technology will certainly transform the old industry structure.

However, it is "people" who will create the future of real estate beyond these changes.

As a "tech-driven human capital investment company," we at INA & Associates promise to continue to provide the highest value to our clients and to society by combining the power of technology and human capital.

The real estate industry is now at a major turning point.

Rather than fearing these changes, we must proactively embrace them and leverage technology to create new value in order to survive in the coming era.

We believe in the power of technology and "human resources" and will continue to pioneer the future of the real estate industry.

If you have any concerns about real estate, real estate investment, or DX promotion, please feel free to contact INA & Associates, Inc.

Our professional and experienced staff will provide the best solution for each and every one of you.

Frequently Asked Questions

Q1:Can small and medium-sized real estate companies implement real estate tech?

A1: Yes, it is possible. In recent years, many services are offered in SaaS (cloud-based) format, and an increasing number of tools are available for as little as several tens of thousands of yen per month, with a low initial investment. We recommend that you first clarify your company's issues and start small, starting with specific tasks (e.g., customer management, processing of property photos, etc.). After implementation, you can measure the effectiveness and expand the scope of application in stages to ensure successful results while minimizing risk.

Q2:When technology is introduced, will human work disappear?

A2: No, they will not disappear. Rather, the "quality" of work will change. Routine and repetitive tasks will be left to technology, and humans will be able to concentrate on high-value-added tasks that only humans can perform, such as consulting, which requires more advanced judgment, and building trusting relationships with customers. Technology is not a tool to take away human work, but to help people focus on more creative and meaningful work.

Q3:Which areas of real estate tech should I consider implementing first?

A3:Start by identifying the "irrational" tasks that are taking up the most time and effort in your company. The key to success is to choose the right tool for the task at hand, whether it is a "business support tool" for entering property information or an "AI chatbot" for responding to customer inquiries. Also, by starting with areas where the benefits of implementation are easy to see, it will be easier to gain understanding and cooperation from within the company.

Q4:What points should I pay attention to when introducing real estate tech?

A4:The following points should be considered when introducing real estate tech. First, clarify your company's issues and objectives, and choose the right tool for them. Second, make sure to provide sufficient training and support for your employees. Furthermore, ensure data security and privacy protection. After implementation, it is important to regularly measure the effectiveness of the system and make improvements as necessary.

Q5:How long does it take to see the effects of implementing real estate technology?

A5:It depends on the tool and the nature of the business, but in general, the effects will begin to emerge within 3 to 6 months after implementation. However, it takes a certain amount of time for employees to become accustomed to the system. It is important to take a long-term perspective and not be hasty. In addition, it is essential to continue periodic reviews and improvements to maximize the effectiveness of the system.