Property Technology, commonly called PropTech, is a digital trend transforming the real estate industry. The term refers to software, hardware and startups using the technology to solve market problems.
The benefits of PropTech are endless, according to Property Week journalist Eoin Condren. “A property company storing data all in one place can create instant access and visibility into key portfolio metrics concerning demand, leasing activity, occupancy, in-place tenants, current lease terms and more,” he says.
Here are five reasons the PropTech trend should not be avoided:
- We’re in the early days of the technological revolution: “It’s an exciting time in real estate right now,” Michael Davis, leader of JLL London Unlimited. says. “PropTech is starting to make its presence felt both in residential and commercial. And, while it has a long way to go before it reaches the level of disruption FinTech [financial technology]has achieved, it will usher in big changes over the next few years.” Innovation has thrived in the PropTech field, although its most common form is the search-and-shop portal. The technology is expected to not only provide data-based insights but also streamline transactions, and despite being run by unfeeling algorithms has the potential for creating a personalized buying experience. Source: JLL
- Integrated technology: Now, armed with nothing more than a smartphone, tablet or smartwatch, real estate agents are equipped to answer any customer question. “This can be anything from viewing the property safety certificates,” website Zynstra explains, “or showing the price fluctuations of the surrounding area instantly. Providing such information can put viewers’ minds at ease, leading to an increased likelihood of making a sale.” In addition, PropTech such as virtual reality is expected to become more affordable to smaller companies in the near future, allowing Realtors to add selling points to the VR experience. Also soon, 3D printing will allow property developers to address customer preference and environmental issues while offering affordable housing. Source: Zynstra
- It’s environmentally friendly: PropTech has the potential for making real estate transactions paperless. Mortgage applications and real estate offers can all be handled electronically. Documents can be signed using electronic signatures. All this means, there is less chance of documents going missing, and specific documents easily can be found in a searchable database. Another option for electronic documents is to create a content management system specific to the real estate industry. Source: Signable
- Brick-and-mortar businesses are outdated: Or at least that’s the opinion of Alex Gosling, the CEO of Britain’s HouseSimple.com. “As more people feel comfortable with the online model,” he says, “we expect online agents to grab a bigger slice of the UK estate agency market. Currently, online real estate agents have around 5% market share. We believe this will increase to 15%–20% by 2020.” Online portals allow renters and buyers to search listings that are updated in real time while saving them millions of dollars in fees. Source: The Guardian
- The first digital property advisor: British PropTech startup Hubble is launching what it calls the world’s first digital property adviser. The digital adviser will replace commercial property agents, the company says. Hubble CEO and founder Tushar Agarwal says his company is the “driving force behind a trend that is seeing traditional commercial property agents quickly becoming obsolete.” It’s not that Hubble is seeking to put agents out of a job. Conversely, the company believes it is technology that is displacing companies from the real estate they normally occupy and forcing property agents to look for work elsewhere. Source: Tech City News
Learn from other developers and firms that are embracing the proptech trend at MIPIM PropTech Summit this October in New York City.
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