Estate Agents Ignoring Virtual Reality Are Losing Big Deals

A $13 billion miss for estate agents to be precise

Kevin Abraham

5 min read

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Feb 22, 2025

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House hunting is like time.

It never ends. You spend your entire weekend driving around like a maniac from one house to the next, only to say to your estate agent “That bedroom was too small” or “Those toilet tiles aren’t my preference”. You come home, sit in your dimly lit room and fall back with a sigh. All the endless running just to realise you gained nothing.

That’s life, right? Wrong

We’re in the world of digital real estate.

It’s a new reality. Actually, I make that extended reality.

Extended Reality: The Holy Trinity of Digital Real Estate Innovation

Extended reality isn’t just one thing. We’re dealing with a trio of technologies burning with the desire to change digital real estate.

I’m hungry writing this (Shock). Think of this as a three-course meal.

• Virtual Reality (VR) is your main course, serving up completely immersive digital environments
• Augmented Reality (AR) is your side dish, adding digital elements to your real-world view
• Mixed Reality (MR) is your dessert, blending digital and physical worlds in perfect harmony

And trust me, this meal is about to become real estate’s new daily diet.

Virtual Reality: Estate Agents New Marketing Superpower

Virtual reality isn’t just here to show properties, it’s the newest marketing tool. There are estate agents out there selling properties which haven’t even been built yet.

Let’s imagine you are a buyer. You put on a VR headset. That’s right, you’re not at home anymore. You’re walking through your dream home, virtually. How’s the master bedroom looking from there?

I haven’t even told you the best part yet. This building might still be a blueprint.

Dropped your jaw? Pick it back up.

There are plenty more things I still need to tell you.

Luxury Real Estate: When Good Enough Isn’t Good Enough

Now I’m about to talk about the big boys.

Luxury real estate.

With these properties, “just okay” won’t cut it. Your Saudi billionaires’ aren’t just looking for a home. They’re looking for an experience. To be precise an immersive experience.

You want to go above and beyond to give them the experience they need, not the experience they want.

3D Scanning: The Digital Twin Revolution

It’s 2025 and there are still listings which look like they were taken from a potato.

We’ve got 3D technology over here and estate agents are ignoring it. It’s like giving your property a digital clone. Every architectural detail is captured to perfect precision.

You want to be ahead of the game.

Not behind.

Why Virtual Reality Is the New Normal (Whether You Like It or Not)

I strongly believe virtual reality will become the new normal. And here’s why:

Time and Money Savings

Both the customer and the estate agent save their time and money.

You don’t have to waste your time showing properties to people who hate the neighbourhood the moment they arrive. For all I know you could be sitting in your underwear walking through a 5 million apartment. That’s the dream.

But seriously, time is the most precious thing we have. Why would we want to waste it when it could be saved?

International Buyers

Nowadays, you could be breathing the cold air of the UK but mentally your vision is in Spain.

You don’t have to trust pictures on a listing site to plan your retirement location. Those days are done. Even the big investors can make decisions faster and with more confidence.

• Language barriers between estate agents and buyers don’t matter anymore (as long as you have eyes)
• You can tour anywhere you like
• Time zones don’t matter anymore

Wider Reach, Better Engagement (An Estate Agent Dream)

If customers can reach anywhere in a matter of seconds, you’ve just opened up your market.

Those European buyers may show you the interest you’ve wanted. These virtual tours are much more engaging than a regular house tour. I’ve been to plenty of house tours. They. Are. So. BORING.

I stand there, see the bedroom and say “Nice”.

Now I can snoop around without someone lurking behind my back. Virtual home tours are more engaging. They are fun. They bring excitement.

And you know what else could happen with this excitement? Possibly a sale.

Highly possible.

Well, nothing’s perfect

I would be doing you all an injustice if I didn’t paint the whole picture. Let’s be real, everything has challenges.

Challenge #1: The Technology Gap

Technology isn’t everyone’s field of expertise. Some estate agents aren’t ready to embrace it.

• It won’t be the cheapest item to buy for a real estate agency.
• The learning curve for an established real estate agent can take time
• The experience won’t be the same for everyone

Don’t worry there are solutions to these problems. I don’t have them but owners from companies like Matterport will.

Challenge #2: The Human Touch

Real estate has always been a stubborn one.

It’s always been a people’s business. People are concerned about losing their connection.

• Subtle details might only be available to see during a physical inspection
• Reduced chance for networking
• Boredom of the tech

The key is to find the right balance. You don’t want too much of either. I believe a combination of both is perfect.

Technology should be used to enhance, not replace. The human interaction is what makes real estate its own thing.

The Future Is Already Here

VR and AR working together in Real Estate isn’t far off.

It will come fast. It will hit hard. And the innovations won’t stop.

Let’s talk about some numbers:

• In 2017 alone, Virtual reality attracted huge investments of around $13 billion
• By 2025, revenues generated from VR/AR software are expected to reach $2.6 billion, and the market of VR and AR is expected to reach at least $80 billion in real estate

The message is to adapt or get left behind. Technology is getting better every day and you should embrace it and get better together.

Every industry had its sceptics before a major change. You don’t want to be the one saying “I wish I had gotten into this earlier”. You want to be the estate agent leading this industry.

Will you step inside or be left outside looking in?

Thanks for reading.

Kev.