3 real estate technology trends
It seems as if some of the most significant changes in real estate technology are now so far behind us, it’s hard to even imagine a time when you couldn’t pull up a listing on the internet or research the good and the bad of potential investors with the click of a button. And since these little life-changers feel so stale, the industry is more than ready for another shake-up. Here are three trends in real estate technology we’ve got on our radar:
The US has seen dramatic increases in this new way of financing since President Obama signed the Jumpstart Our Businesses (JOBs) Act into law in 2012, which relaxed federal regulations and made crowdfunding possible. As a result, businesses were able to accept contributions from individuals without first making a public offering. Investors now have access to many platforms to choose from, many with their own unique structure, so there’s no one-size-fits-all option. While the model has its challenges to overcome—there’s inherent risks between inexperienced lenders and developers, and fees owed to the platform can add up—real estate crowdfunding platforms have doubled from 2014 to 2015, according to reports.
2. Smart Contracts
Blockchain technology (which can hold, track, transfer and verify any information) has made “smart contracts” possible—contracts which are scripted in code and verified and enforced automatically without the human, third-party component currently necessary to facilitate these transactions. While this has advantages—improved transparency and a speedier transaction process—real estate professionals worry this could eliminate too large a part of the workforce, which would include agents, lenders, inspectors and title insurance providers, according to CRE Tech. This technology is likely years off in the future from being applied in any widespread sense, but it’s been widely discussed by industry professionals at conferences and in the media.
3. A Platform for Everything
Whether you’re a broker, a landlord, or a consumer, there is a slew of options online now tailored to assist during every imaginable situation. These have allowed nearly everyone involved in commercial real estate transactions to be more efficient and more mobile at the same time. For example, prospective tenants can find potential commercial rental spaces (42floors.com) or book a conference space on demand (breather.com). Brokers can track and manage leasing activity and collaborate and share data with their teams (viewthespace.com). Property owners can manage practically their entire operation from their phone or tablet (gethightower.com). These are, of course, just a handful of the many options out there, but they all alleviate much of the need to be desk-bound, which frees up more time to work out in the field.
MIPIM PropTech Summit at NYC Real Estate Tech Week
The industry is changing rapidly. MIPIM and MetaProp have teamed up to plan a full day conference and networking forum at NYC Real Estate Tech Week’s flagship event. The event will cover the most cutting-edge technologies in real estate, which will shape the next generations of PropTech, as well as perspectives from a variety of speakers who are leaders in their fields. There will even be a first-of-its-kind competition for startups in the PropTech field. The competition will recognize the most dynamic international startups that are offering real estate and urban management solutions and provide those competing with an opportunity to meet and pitch business to relevant investors, developers, financial companies, media analysts and other key influencers. Contestants from the New York round of pitches will face off against startups selected during London’s MIPIM UK and Hong Kong’s MIPIM Asia at the MIPIM Startup Competition 2017 in Cannes, France next March. For more information, visit http://www.mipim.com/en/proptech/
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