PropTech is slowly gaining popularity in the real estate industry. As a result, realtors are looking more into tech solutions that improve their numbers in marketing and sales. Previously, there was more emphasis on using software and apps to bridge buyers’ and sellers’ connections. But there is so much more than sales and marketing that the industry needs for success.
This technology, a coined word from property in technology, focuses on getting comprehensive information and services in the real estate industry. It is comparable to ‘Fintech,’ which is finance in technology. Most stakeholders in the industry can benefit from this technology.
Developers and investors understand the landscape and the consumer wants and needs in the market. Consumers also get to understand what’s best for them based on the stats and information from the Tech. Most management companies and agents lean on obtaining and developing this tech to aid in having a wholesome understanding of the industry patterns.
PropTech is an evolving technique that all parties use to create a digital platform where they can minimize the weaknesses in the real estate industry, especially in densely populated areas. Companies can manage challenges such as managing affordability while keeping up with the demands of the industry when they incorporate technology into their operations.
Property technology encompasses other types of tech tools in real estate like smart real estate, real estate fintech, and Contech. It started in the late 20th century – the dot-com-boom era- and has since grown into an essential industry part.
The integration with these tech tools has improved real estate services globally. There is more growth in the US than in other areas like Europe, Asia, and others. One can attribute this to the number of companies dedicated to developing property technology in their former’s region.
Its Impact on the Real Estate Industry
Property technology broadens the possibilities in the real estate industry. One can research, manage, buy, sell, or lease a property with ease due to the available tools in the market. These tools provide better data analyses and comparison tools that enhance decision-making. Interested parties can get market insights from the data, which changes the dynamics and fortunes of their activities.
Current Property Tech Trends in the Industry
Multiple companies are developing Proptech within the industry. These companies are focused on improving current industry systems, specifically to help existing real estate professionals. These are the current tech tools in property technology.
Digitizing and Analysis of Property Big Data
Analyzing big property data in the residential and commercial fields helps one predict trends for better decision-making. For example, it is easy to estimate house prices, the impact of different amenities and facilities on the property, or any potential risks. Such stats will also improve the accuracy of the services from realtors.
AI and Machine Learning
Tools such as chatbots and emailing software that keep the customer informed play a significant role in maintaining customer relations. One can also use their predictive capabilities to streamline customer data and information.
People have been using virtual tools to connect and bridge physical and geographical gaps. For example, customers can do virtual house tours or have virtual meetings through skype with their agents. They can also sign leases and documents through various software.
IoT is the next big thing globally. Most people are taking to smart technology to help them automate and ease different tasks and chores within the house. Innovative technology eliminates the need for manual start/stop or on/off tasks in the house. For example, having an automated temperature control system increases the price and functionality of a household.
Sustainability in projects is essential for any building or construction. Therefore, realtors need to use sustainable techniques during construction and energy-efficient equipment and tools.
Benefits of This Tech
The benefits of PropTech spread across every stakeholder in the industry. Landlords and homeowners benefit from having detailed information which they can scrutinize and draw conclusions on the viability of the property. They can also simulate and predict how valuable the property will be in the future. What’s more, is how easy they can obtain this research and information with the tap of a button.
Tenants benefit through the ease of communication through virtual and communication tools within the industry. Landlords can get information on the property status, thus efficiently scheduling any maintenance routine or repairs.
Agencies get to improve their marketing and lead conversion time. In addition, the communication between agents and clients becomes better, quicker, and more accessible due to VR tools.
Investors understand their stakes in the market due to the extensive information put forward by the big data and AI tools. They can also learn about profitable construction projects and techniques which will reduce risk or prevent total failures.
What Does the Future Hold for PropTech?
With the projection of increased internet usage and technology usage by 2025, trends are bound to change and increase in popularity. More people in the industry are embracing this game-changing technology. The good news is that PropTech promises to further stretch the real estate industry by delving into finer details like networking, communicating, IoT and smart technology, and property big data.
Lenora Shain has been interested in business since she was a little girl. Finding ways to earn money and improve operations has spurred many creative ventures. She now lives in Milwaukee with her two dogs who escort her on many adventures at home and abroad.