PropTech – shaping the future of the real estate market
Technology is a big driver of change in almost all major industries. The need for using tech solutions and innovations to solve age-old problems and increase efficiency is more obvious now than ever. However, not all business sectors were as eager to embrace new technologies and transform their operating methods.
The real estate market has been traditionally resistant to change, so the sector lags behind when it comes to technology adoption. This reluctance to change is partly due to the fact that old-style methods have worked well in the past. The why fix it if it’s not broken approach is what kept this area of industry from taking advantage of all the benefits provided by technology.
But times are changing and the real estate market couldn’t stay in its bubble forever. In the past few years, the market has made significant efforts to make up for its lack of interest in adopting tech solutions. As industry players came to realize the amazing advantages they could gain by employing tech solutions, the concept of PropTech started to take shape.
What is PropTech?
So, what is PropTech and how did we go from an industry that was inherently reluctant to change to a new real estate model where tech takes center stage?
In simple terms, PropTech refers to all technologies that are used in the real estate market to facilitate activities such as buying, selling, renting, or managing properties. Various products and services can be included in this category, from tech-enabled brokerage portals to the use of smart devices connected to the cloud (IoT).
The emergence of PropTech was made possible by the rapid expansion of the tech sphere and the numerous tech products and services that surrounded the real estate market. The data that the real estate market relies on to operate was once inaccessible to the public, but tech advances made it possible for the general public to access it. That’s when the first steps towards PropTech were taken. From that moment on, the real estate market became heavily influenced by technology products and services, and the trend shows no signs of slowing down.
PropTech trends to look out for
Now that PropTech is rapidly gaining ground in the real estate market, let’s take a look at some of the trends that will shape this sector in the near future.
Automated rental and purchasing platforms
The traditional way of renting or buying a property implied meeting with an agent in person. Now the search has moved online, through automated rental and purchasing platforms. These days, if you want to explore different areas of Newcastle for example, in search of a rental property, all you have to do is use one of the many real estate platforms you find online and click away until you find a property that checks all your boxes.
The comfort and convenience provided by these platforms is impossible to ignore, so it’s no wonder that both clients and real estate professionals are taking full advantage of these tools.
Virtual tours
Finding a suitable property is the first step in the rental/purchase process. But it’s property tours that help clients decide if the apartments or houses they’re considering are a right fit for them and ultimately seal the deal. Back in the day, the only way to take part in a tour was to go there in person and have a real estate agent show you the property.
But technology changed the game when it comes to real estate showings as well. Potential buyers or renters now have the possibility to visit the properties virtually, eliminating the need to travel to the location in person, and the costs associated with it. There’s no denying that in-person visits still play an important role in the final decision, but virtual tours help a lot in narrowing down the options and facilitating the search process.
IoT
We are surrounded by smart devices everywhere we go, many of them being connected in complex networks forming the Internet of Things, so it’s no surprise they’ve made their way into the real estate market as well. Smart homes are no longer a new thing. These homes use a range of smart devices that you can control remotely through the internet.
New builds especially feature a series of innovations meant to provide a higher level of comfort and safety for the residents. But older properties can also be upgraded to offer the same conveniences. Examples of IoT applications in the real estate market include devices that allow residents to control lights, locks, or heating systems from afar, smart sensors, intelligent access controls, etc.
Blockchain
Most of us are familiar with blockchain technology as it’s used to power the cryptocurrency market, but blockchain applications go beyond supporting the adoption of digital coins. The technology can also be used in other sectors, and the real estate industry is one of them.
In the real estate market, blockchain technology allows for safer transactions, ensuring that financial records cannot be tampered with. This can make a big difference to property owners and investors, especially when it comes to fractional property investment. Blockchain applications in real estate are still in their infancy, so we can expect to see further developments in this area in the years to come.
Apps
We all use mobile apps because they make performing everyday tasks so much easier, so it was only a matter of time until real estate apps entered the scene. Most of them serve the same purpose as automated rental and purchasing platforms, allowing users to skip the traditional research process when looking for a property. Apart from convenience, these apps also provide timely information about the houses and apartments available on the market, helping potential buyers locate properties with ease. These are just a few of the innovations that have changed the way that the real estate market operates, but there are many more emerging technologies that will definitely bring further transformations in this sector in the years to come.
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