Recently we’ve focused on Proptech because we see a lot of potential in it and noticed that this market attracts more and more attention. Recently, Ola, our CMO, shared her six lessons she’s learned about Proptech. Now, we want to take an in-depth look at the trends in this sector. What direction is PropTech heading? What opportunities is it giving? How does it impact selling, building, renting, and managing real estates? Let’s see!
Internet of Things
IoT solutions are entering more and more fields, from health care, security and design to smart buildings. According to forecasts, there will be 30 billion devices embedded with software on the market by 2020 and they will become a significant area of interest for investors. An example of a big company that’s already implemented several hi-tech solutions for smart home is Whirlpool. Their household appliances like ovens or dishwashers are compatible with the voice-activated Google Assistant and Amazon Alexa. You can preheat your dinner or start the dishwasher when on the way home. Whirlpool app with its intuitive interface can take your chores to a whole new level by allowing to program and operate them remotely. Innovations like this make buildings smart, just like this Dutch most green building in the world.
Virtual Reality is an immersive tool that comes very useful for real estate agents. Instead of real-life listing presentation, agents can show the property to potential clients taking them on a 3D walk around few properties at once. It saves both agents’ and clients’ time. What’s more, it’s much easier to sell and rent buildings that haven’t been built yet. Check out what a tour around a virtual apartment feels like here at GlobalVR. Moreover, AR helps people decorate their space. Cambria, the producer of natural stone surfaces, helps their customers make decision with an AR app. Check out how does it works. Recently, extended reality also entered large-surface buildings, improving navigation through supermarkets and shopping centers. The Mars Agency gives a feel of what the future of grocery shopping can be like with Google Glass. How cool is that?!
Cryptocurrencies are part of the adaptation of blockchain. As of now, the most significant advantage of that system is the ability to exclude third parties from transactions and avoid financial institutions additional fees. The encrypted transactions are also very secure. No wonder why they are entering the real estate industry, where such large sums of money are being traded. Propy is a global property store with transactions secured through blockchain. The startup provides a platform with real estate listings where you can buy properties with cryptocurrencies.
We have many crypto-millionaires and billionaires, they are looking for diversification opportunities. Real estate is one of the best ways to diversify your portfolio. Says Propy CTO Alexander Voloshyn.
Let’s get this straight, we live in big data times. And this obviously also applies to the real estate industry. In this kind of business, it all comes down to analytics. The more data you have, the more accurate are your predictions. Forbes features a real estate startup that uses data science to predict home listings before they happen. First uses machine learning models to predict who will sell. They are tracking 700+ signals across 214 million people across the US. Does it work? According to First:
Our clients are ten steps ahead of the competition. They stop seeing some other agent’s sign pop up in front of their contact’s home. Despite the thread of how much traces we leave in the internet it also gives me a lot of hope as a consumer to match the offer to my needs and expectations.
Big data can work wonders when it comes to real estate market.
Mapping technologies are becoming more and more advanced and accurate. These days maps aren’t just locations. They also contain data like building type, information on potential risks, vulnerable points or prices. Nexus Geographics is a company specialized in geolocation with over 20 years of experience. They create internal geographic information systems and maps for real estate portal Pisos.com. Thanks to their application you can see prices and statistical information directly on the map. You reach out for it not only to locate but also to acquire relevant information. It reinvented the use of maps in a way. Another option offered by Nexus Geographics app is monthly and annual reporting that improves targeting. Remember that in this industry, the winner is the one who has more data and knows how to use it.
Mobility and Automation
Notice that all these trends have a common goal. They strive for mobility and automation of existing solutions. The work of agents is becoming easier, and consumers are be able to make more accurate decisions. Real estate agencies have greater access to data and it enables them to have better targeting. The future of real estate is digital.