Real estate technology (synonymous with proptech) started taking off following the dot-com boom. During this period, consumers began moving their listings onto digital media.
The next wave of tech enabled people to transform physical spaces into passive income assets. One example of this was the rise of online for rent by owner platforms such as AirBNB, VRBO, and now, VASA.
The rise of PropTech is influenced by technologies in the finance industry, such as artificial intelligence. These changes have also affected the way we deal with real estate.
PropTech for Commercial Real Estate
PropTech uses technology and software to help with the various tasks involved in the real estate industry. For instance, it could mean everything from facilitating digital workplace experiences to assisting properties to sell and manage their assets in the office sector or any number of ways to extract more value from real estate and real estate transactions.
It’s not just the people who own and manage real estate using PropTech. The people who work in the buildings also rely on apps to conduct various tasks, such as ordering food, registering visitors, adn managing vending machines and EV chargers.
Instead of installing multiple apps, a modern building app simplifies the process by allowing users to control various systems from their smartphones.
PropTech refers to the various companies working to make the real estate industry better. Some of these include:
- Protech (Real Estate Startups)
- Smart Real Estate (Intelligent Cities and Buildings)
- Contech (Construction Startups)
- Fintech (Finance Startups)
Difference Between PropTech and Traditional Real Estate
Several PropTech startups are disrupting the traditional real estate sector by developing innovative products and services that help users get closer to their goals. These include home selling and buying, financing, and document management.
While PropTech has already affected the lives of real estate tenants, it can also make the process of managing properties easier for landlords. For instance, landlords can now communicate with their potential and existing tenants by allowing users to rent and lease units through their mobile devices.
The future of the real estate industry is bright as long as PropTech continues to develop innovative products and services that help users save money and time. Its goal is to make buying or selling a home more accessible and efficient.
PropTech Technologies for Real Estate Companies
The demand for more sophisticated technology is driving the development of PropTech.
AI Agents
Some AI tech can help real estate agents classify listings according to their various characteristics. It can also help with analyzing photos and determining market trends. It can also produce personalized email sequences for each customer.
Real estate agents have many tasks to do that may seem repetitive. AI-powered agents will be able to handle these tasks more efficiently. AI can even be used in secondary income from vending machines.
Virtual Reality
According to a report, by 2025, about 1.4 million real estate agents will use virtual reality. Aside from tours, VR can also be used to explore potential solutions for buildings.
VR technology can also help real estate agents provide virtual tours of buildings that are not yet finished. This method is beneficial for people looking to buy a home without being in the actual building. Again, high tech vending machines will also be able to use VR and AR technologies.
Lead Generation
Lead generation is a challenging part of the real estate industry. With the help of PropTech, real estate agents can now generate leads and improve their sales.
Listing Real Estate
Having a solid web presence is very important in today’s real estate market. Various platforms can help agents connect with potential clients and sell their homes.
Contract Automation
Real estate agents are now using digital signatures and automated documents. It helps them reduce repetitive tasks and paperwork.
One of the main advantages of using contract automation software is that it can free up time for the agent.
How Does PropTech Affect People
As the commercial real estate industry undergoes a digital transformation, more landlords and property teams will start using PropTech solutions to attract and retain qualified tenants.
As the commercial real estate industry undergoes a digital transformation, more teams will start adopting solutions that connect their various building systems in a single, easy-to-use location.
PropTech Efficiency
Due to the lack of skilled workers and supply chain constraints, the rise in construction costs has slowed down the building industry. Companies are now trying to improve efficiency and lower costs by digitizing their operations.
Companies like CoFi and Built are helping construction companies get better loans by allowing them to pay their subcontractors faster.
Remote Home Showing
Since COVID-19, the physical world has changed as offices and hotels rely on technology to manage their spaces. They’re also keeping their employees safe and productive during the pandemic.
Real estate agents are also using technology to improve the efficiency of their businesses. They’re also helping buyers stay safe by showing them homes remotely.
Monetizing Beyond Mortgage
Home prices are rising, and finding a home has become harder for people who were house-rich but cash-poor during the pandemic.
Some companies such as Hometap, Unison Home, and Point are even buying up to 10% of a home to provide cash to people struggling to get a loan.
Upstart companies like Zero Down and Divvy Homes are helping people get into homeownership through rent-to-own agreements.
Real Estate Investment Will Rise
Due to the scarcity of housing and the high demand, more people invest in homes. With low-interest rates and stock market volatility, many investors opt to buy single-family homes instead of properties.
The rise in home values has caused more people to invest in real estate. The low-interest rates and stock market volatility have caused more people to buy houses.
PropTech for Elderly People
Due to the aging population, more people opt to stay in their homes instead of moving into nursing homes. It has led to home security systems that can monitor their conditions.
There are also plans to expand the range of on-demand services to enable people to get work done. VR products could also be in demand.
Conclusion
PropTech (Property Technology) applies various technology platforms to the real estate industry. One of the goals of real estate technology is to make transactions faster, more secure, and more manageable.
Digital real estate platforms are often considered an overlapping component of financial technology. Some of these include using various apps and websites, data mining and analysis, and crowdfunding projects.
The more property teams and landlords embrace digital transformation, the more they will benefit from its opportunities that can generate more passive income to make money while they sleep. Through the use of tech, they will attract and retain tenants more effectively.
