Year by year, we observe how technology is revolutionizing new areas of life, giving us new possibilities and making things easier. People change their habits within a short space of time, especially if using technology means making things simple. PropTech is a response to human needs in real estate industry. Startup dictionary has recently expanded by a new term. But what exactly does PropTech mean?
PropTech is a combination of words property and technology. It refers to offering technologically innovative products for the property industry. It’s about implementation technological solutions to solve challenges in the real estate sector. PropTech is relatively new, but there is huge potential for development in it – for better-built modern cities.
The potential of the property industry in a world where we shop online, communicate by Social Media, and book our holidays over the internet, it seems natural to move other areas of life into the digital world. Considering the changes that have already come, not using digital solutions in the real estate industry would be unreasonable. You can say that being digital is essential for every business and we agree with that. We see enormous potential of being digital in property industry too - better-built environment responds to user expectations but also to the needs of real estate developers and agents. PropTech solutions are many facilities for those involved in the creation of real estate and it’s users.
Property market is worth the effort
Why is it a good field to invest in? According to the CB Insights research , the real estate investments have grown rapidly over the last few years. In 2016 the first PropTech startup has been valued at $1 billion. Also, three more startups followed in its footsteps the same year. We talk about substantial global success present on the international market. All of the developed assets in the world come down to more than $217 trillion which makes up 60% of mainstream global assets . The market is tremendous. This makes PropTech a mine of ideas and opportunities for development.
Use Cases and Trends Well - in what areas can you revolutionize the real estate market? In fact, only your imagination is the limit. Startups present on the market so far focus on various industries such as hospitality, gastronomy, real estate sales, service of shopping malls and other commercial spaces. If you come up with any kind of need or a way to optimise things in the property market and have an idea for a technologically creative solution, this is your proving ground.
Internet of things, as it was said, moved our life to the internet. In the modern world, we can embed buildings, devices, vehicles and other things there. By making things smart, we make our life easier. We see developmental areas in property environment management such as real-time monitoring, access control, data auto-diagnosis, remote device control – both at home and in commercial premises. All this boils down to creating smart, intuitive spaces which save our valuable time.
So what’s PropTech in practice?
Virtual reality and augmented reality are currently a dominant trend in the real estate market. Agents use it as a bargaining chip in property sales. That kind of investment presentation is attractive and allows potential buyer to get a feel of buildings that have not yet been built. VR presentation is the best way to sale investments which that are unfinished just as well as an already existing building. It helps clients make a decision faster which for real estate agents it means more effective sales process. It’s a win-win situation.
Furthermore, you can use immersive reality (IR) in a B2B market, especially in the area of employee training or stocktaking of large-area stores. VR can support the company’s marketing tools as well.
IR is also useful in the hospitality industry. When it comes to holiday destinations people could be very demanding. The best-looking offer can have a big influence of their decision of booking an apartment or a room.
Construction and Indoor Management Creating intelligent and technologically advanced properties is a multidimensional and challenging work. For this reason, startups are involved in supporting designers and contractors. Creating apps for arranging space, as well as for mapping building construction can significantly improve working on the investment.
There is a lot of room for more PropTech ideas
As you can see, PropTech is a relatively new but promising field. It is an extensive industry made for people seeking optimisation in their everyday life and it is definitely worth investing in. PropTech is still relatively new, but at the same time the industry is already aware of many unmet needs. This means that now is the best time for entering the business. Let’s have a chat about your idea, and give us a chance to propose how we’d change it into a cutting-edge app!