PropTech has been advancing at an unprecedented rate and the real estate sector, which is embracing technology more than ever, is making great use of new, innovative PropTech methods.
The way in which we live our lives has changed dramatically due to new business models centred around technology. New innovative technologies offer great potential for every aspect of the property market, from virtual reality viewings to drone-assisted construction.
PropTech (Property Technology) is a collective term used to define startups offering technologically innovative products or the new methodology for the real estate industry.
PropTech includes smart cities, and buildings, the sharing economy, the home building industry (ConTech) and finance (FinTech). Both ConTech and FinTech have very close ties with the real estate industry.
According to Blackprintpartners, there were 130 PropTech companies in Germany alone (as of June 2016). Globally, as much as $1.7 billion US dollars have been invested in PropTech as early as 2015.
Many applications of PropTech provide value and cost savings for users.
For example, a proper data management practice. A quick search of information and an easy data exchange between departments and companies will sound like trivialities compared with modern design and usability. The end user can benefit from PropTech, as they are now able to directly interact with suppliers and immediately report possible complications.
・Smart Home: This newly progressive automation will provide an improvement in comfort and more efficiency for users. Popular topics in this area are safety technology, air conditioning and intelligent lighting.
・Smart Buildings: A building that uses automated processes to control the building’s operations including ventilation, heating, air conditioning, security, lighting and other systems.
・Building Surveys: This interior view can be used by different technologies for various applications. Examples are 3D rendering for guiding a map in shopping centres.
・Real Estate Management/Property management: This type of PropTech will help with the management of properties, examples include tenant management, management of lease payments, communication and consumption indications tools.
・Virtual Reality(VR): Used for sales and marketing in the prime residential market, where investors often live miles away from the properties they want to view.
In addition to these areas, new trends are emerging across all sectors of the real estate industry
・Crowdfunding platforms are reshaping construction and real estate investing opportunities and home swapping/redevelopment/renovations are growing increasingly popular for seasonal rentals.
・Co-working space are offices which can be used in a more flexible way, as well as offering opportunities for networking, collaborative ideas, and innovation.
・Co-living is offering new alternatives in residential real estate
All ideas can then be found in different types of property - including land, buildings, offices, shops, storage and other property types. Building occupiers and owners are coming onboard to the possibility of sharing economy and a digital solutions.
In Australia, PropTech companies such as BuyMyPlace, Rent.com and LocalAgentFinder have hit the sector as well as international groups like Airbnb and Purplebricks.
"Any advice provided on this blog is general in nature. Readers are urged to seek their own professional advice before making decisions."