The application of virtual and augmented reality technologies in the real estate industry in bahrain

Abstract

Modern technologies continue to evolve in the Real Estate sector in attempts to increase profit and efficiency. Virtual Reality (VR) and Augmented Reality (AR) technologies are no exception, streamlining the way business is done. Today, more than ever, developers claim that the technology can provide an efficient means of visualizing, marketing and selling real estate project. VR and AR technologies fill the imagination gap in the real estate market, enabling investors to visualize the result of an on-plan project and to imagine how the space will look like after being built, refurbished or emptied. Through a set of semi-structured interviews, this research investigates the role of real estate developers as clients for these technologies and explores the contribution of technology providers in revolutionizing the real estate sector. Ten semi-structured in-depth interviews were conducted with seven developers and three suppliers to study the potentials and challenges of employing the technology in the real estate sector in Bahrain. The results showed the effectiveness of the technologies with younger clients and investors and the challenges that faces its adoption with the older generation. The research showcases the usefulness of employing AR and VR technologies in enabling better visualization and facilitating higher sales in the real estate sector. The study showed that even though VR and AR technologies provide people with a simulated lifelike experience, it cannot be identified as a replacement of the brochures, 2D and 3D drawings, and physical models. There seems to be still a gap between the developer, the consultant and the VR specialist concerning taste, sale potentials and the costs associated with the design. The technology still suffers from many shortcomings including its unjustifiable high cost for small projects, its heavy size, and its tendency to crash or jam often. In addition, the technology is still Internet dependent which requires a strong connection at the display venue.