Virtual reality estate tours: The age of immersive virtual house tours

• Author:
• Author name

  Quantumrun Foresight
• October 31, 2023

Insight summary

The real estate sector has leveraged Virtual Reality (VR) and Augmented Reality (AR) technologies for immersive property tours, catering to remote buyers amid the pandemic. This digital transition, exemplified by an 83% rise in weekly 3D tours in the UK, offers a cost-effective, eco-friendly alternative to traditional property viewings. Companies like Vancouver-based Stambol Studios create realistic property simulations, aiding visualization for potential buyers. While this digital approach minimizes the need for physical site visits and real estate agents, it calls for new legal frameworks to ensure accurate representation and buyer protection.

Virtual reality estate tour context

Virtual reality (VR) is an interactive experience typically using a head-mounted device (HMD) that allows users to view a simulated digital environment. (Increasingly, these HMDs are coupled with peripheral devices such as smart gloves and suits that offer users a multisensory VR experience.) In the context of real estate, VR estate tours can be engineered to be just as engaging as real-life visits, while being much more convenient. Virtual reality can also give buyers a more realistic view of properties before they are built—this application can change how people buy and sell properties, as well as how architects and interior designers work. 

According to UK-based property consultant Strutt & Parker, weekly 3D tours increased by 83 percent during the pandemic as individuals became more interested in real estate, some realizing they could work from home full-time. Virtual tours have encouraged clients to spend considerably more time and money on the property they are considering. Such online appointments reduce commuting time, are less stressful, and allow potential buyers to pick which details are essential and which aren't. In addition, people have become increasingly comfortable with digital interactions in recent years, transitioning VR estate tours into business as usual.

Disruptive impact

Since 2016, Vancouver-based VR/AR firm Stambol Studios has created virtual simulations for architects and property developers to help potential buyers visualize and understand a potential purchase. The company has found that many people are now interested in purchasing property, even in this challenging economy, but they may not always be able to visit the sites in person. Using VR technology, Stambol can create an incredibly realistic simulation of the property that can be viewed on a mobile device or computer. This service gives buyers a better sense of what the property will look like and whether or not it is right for them. Stambol can even create a digital twin of a job site instead of actual buildings. 

In addition, VR house tours are more cost-effective. A single sample condo suite in a commercial center might cost USD $250,000 to build; developing and furnishing a complete home could be hundreds of times more and not eco-friendly. With VR simulations, a three-bedroom apartment only costs USD $50,000 to re-create. For architects and interior designers, VR simulations provides a new way to showcase their work to potential clients without investing in physical materials and furniture. These simulations may also disrupt the industry by making it easier for buyers to find and purchase property without needing a real estate agent. However, some studies show that real-life visits can increase the pleasure that potential buyers derive from the experience, making them more likely to purchase a property than with virtual simulations alone.

Implications of virtual reality estate tours

Wider implications of virtual reality estate tours may include: 

• VR/AR tech firms expanding from simulations of homes to other properties like coffee shops and commercial centers.
• The increasing use of cryptocurrency to purchase VR estates.
• The use of non-fungible tokens (NFTs) to create digital certificates of ownership of VR-simulated environments
• Architects and interior designers being able to create elaborate concepts that might not be possible in real life but will effectively showcase their skills and capabilities.
• Potential homebuyers preferring to view VR estates, resulting in lower carbon emissions caused by less commuting and developers building showcase rooms.
• New legal precedents or legislation needing to be established that ensures buyers are protected in the case where a real-life home does not match the VR renderings presented to them at the time a purchase or investment was made in a given property.

Questions to comment on

• How else can VR affect how people will select and purchase their homes?
• Have you used 3D or VR-enabled mediums to explore potential real estate purchases? How would you describe your experience?