PropTech is a rather new term for a lot of people but it has come up in a similar concept as that of some familiar terms like FinTech or EdTech. The term itself is quite self explanatory as it amalgamates “Property and Technology” or simply signifies the application of technology in the real estate sector. Technology has impacted the industries like Finance, Education, Medicine dramatically over the past decade and the real estate sector seems to be heading towards the same path.
We can’t undermine the strong relation between technology and the real estate industry as with each passing day, new innovations are making the industry more efficient. Not just that, technological advancements are even transforming the way we look at the industry. From development of user-friendly buying and selling platforms to smart homes, the industry is effectively merging with technology. Also, the PropTech industry has a major impact on both transactional and the operating costs in the sector and hence reflecting a rise in the overall productivity.
The ever surging demand for real estate has seen the PropTech market gain new heights YoY. The pandemic too had a major role for the industry to grow as platforms like virtual property views, property matchmaking and blockchain have seen to influence the market drastically. The evolving technology has brought fascinating transformations in the real estate sector. Inculcation of technologies like IoT, AI, ML and Big data have literally boomed the real estate industry over the past few years. Here’s a list of some major technologies that are revamping the real estate world.
- Artificial Intelligence & Machine Learning: The power of AI & ML are second to none. Even looking at the possibilities and the range of industries this technology can impact, it looks surreal. The motive of AI is to imitate human intelligence thus, creating possibilities to remove agents and other human indulgences in the industry. AI needs data and together with sophisticated ML and other softwares such a feat is achievable. Currently no organization is fully capable of using the technology as a whole but it would be incredible to notice how the technology would be a game changer for the entire sector.
- Virtual Reality / Augmented Reality: Applications of this technology are not limited to the entertainment industry, but its dimensions are spread across the real estate sector too. Since the pandemic struck, virtual has been a new norm for numerous industries as it is convenient and time efficient. VR/AR enables tenants to evaluate the property they are interested in, from a safe distance in a close to real life experience. With easy accessibility and making realtors market properties of commercial or residential nature much more effectively, the technology has been a real boost to the entire industry.
- Smart Homes: Everyone likes to have automation in their homes, right from controlling electronics by voice commands to remotely accessing any smart home appliance. Technologies of this nature help people to be at peace. New buyers are also inclined to properties that are technology enabled and that too not limited to smart devices like Google Home or Amazon’s Alexa.
- Data Science: In this generation and the ones to come, data will be responsible for major transformations in numerous industries and PropTech is not far fetched from it. Historical, real-time and projected data will help the industry to always be proactive and move synchronously with the ups and downs of the market. The analytics would be beneficial for both buyers and sellers in countless ways as predictions regarding trends and fluctuations would be predictable.
Apart from what lies ahead, some technological blends have already disrupted the sector like e-commerce involving not just buying and selling platforms but platforms offering renting, investing, crowdfunding, brokerage, property valuation and much more. Likewise, Construction technology (ConTech) tools like modeling softwares, cost estimation and project management tools have already brought huge transformation in the segment. Apart from this we are also well versed with co-working spaces and property management tools that have been influencing the industry for quite some time now.
At this stage, only predictions can be made as to how the transformation would appear in the years ahead but looking at the pace the technologies are changing and needs are evolving, it would be intriguing to witness a PropTech revolution soon.