Lesson 1: There is some big money in the game
PropTech solves typical challenges related to the real estate industry thanks to the latest trends in technology. It improves the way we sell, buy, rent, design, construct and manage commercial properties. However, it is essential to be aware that people are generally doubtful and struggle to trust new technologies, especially when it comes to spending large sums of money. They think twice when deciding to buy an apartment, a house or making any such big investment. This is a serious expense, often an investment for a lifetime. That’s why the real estate market is an industry different than any other and a very demanding one. Reliability is a crucial matter here.
Lesson 2: PropTech startups spring up like mushrooms
Especially in recent years. Globally, the number of PropTech startups increased more than 7 times since 2007 to 2018. Over that period, the accumulated investments in these startups increased from USD 2.4 billion to USD 33.7 billion. Initially, this industry consisted only of a narrow area of real estate sales; now we are talking about a whole range of various solutions, including the internet of things or three-dimensional presentation of objects. CB Insight organized these companies into two major subcategories: commercial and residential. Looking at the map, we can see that the technological real estate market is very diverse and multifaceted.
As you can see PropTech startups are often tightly linked to FinTech, due to large sums traded on the real estate market. This is one of the reasons why the sector develops so multidimensionally.
Lesson 3: The faster you invest the better
At the moment, PropTech already occupies more than a dozen different sectors and becomes one of the most popular fields to invest in. There is a lot of potential in it for selling not only business ideas but also proprietary technologies. It is easier to enter the market when the competition is not very fierce. That's why now is a good time to do it! In our previous article PropTech - a revolution in real estate we talked about how it all began. Yet now the market is already dispersed, but at the same time there is still a lot of room for innovation and expansion. The sooner you make your idea happen, the higher the chance for it to be unique.
Lesson 4: PropTech is a field which responds to today’s people’s needs
In 2018 PropTech focuses on millennials, tech-savvy consumers and rapid urbanization. From day to day people have more expectations towards technological solutions. Expanding perception is one of them. We want to see experience things in every possible dimension. That is why drones and virtual reality are being used more and more often. Starting from the creation of 3D building projects, through controlling construction sites, to 360° city guides. This is an area where technology makes processes more manageable, and there is still a lot to improve there. In the upcoming years, this will undoubtedly be a field worth paying attention to.
Lesson 5: Events and trade shows are places to be
Have you ever heard about the UK PropTech Association? UKPA is an organization that supports the development of PropTech companies and individuals in the UK. They organize trade shows in Hong Kong, Dubai and New York that create opportunities. MIPIM - the world’s leading annual real estate technology event is also the place to be. Check out their website for details. These events are a great chance to network, they are an opportunity to come onto the market and kick off your idea. Put these dates in your diary, and stay tuned with the latest events.
Lesson 6: The real estate market has a promising future ahead
The great advantage of PropTech industry is that it creates solutions for property sellers, customers and also various other real estate service providers. It has a wide base of recipients. Many advanced technologies have already been used in that field which changed our understanding of innovation. Chances are great that in a moment the real estate market is going to outride the blockchain system. It may happen faster than we expect. This opens new opportunities for startups and entrepreneurs. Thus, if you are thinking of investing in PropTech, do it now.