November 9, 2016
In partnership with ULI and Allen Matkins, Connect Media brings you the “Number of the Week” every Wednesday.
$2.6 Billion: Potential 2025 global revenue from virtual reality use in the housing industry
Virtual reality for residential real estate could generate $2.6 billion in revenue in 2025, according to Goldman Sachs Global Investment Research. Goldman derived this base-case estimate from its assumption of 300,000 potential users and the portion of commissions that can be captured by VR applications.
“I don’t think any institution, even the folks who are making these headsets, has a really concrete sense of the rate of adoption that is going to occur within this sector. I think what they do accurately capture, is that when virtual reality is adopted, it is going to shift dollars from a variety of traditional, two-dimensional interfaces into something brand new,” said Dave Eisenberg, CEO of Floored Inc.
“When I think about virtual reality in real estate, I think about, where does the application of virtual reality vastly exceed the quality of an existing experience?” he added. “Anytime that you are trying to explain the concept of a building that does not exist, virtual reality will be a superior mechanism to share that visualization, versus a traditional rendered image.