PropTech is a term you may have started hearing more and more often in recent times. It is an abbreviation for "property technology," and it refers to the use of information technology (IT) to help individuals and companies research, buy, sell and manage real estate.
Just like FinTech (the use of technology in finance) has revolutionized how we bank and pay for things, PropTech is starting to do the same for the real estate industry. In this article, we'll explore what PropTech is, how it's streamlining and connecting real estate processes, and some of the benefits it offers.
What Is PropTech?
Have you heard of PropTech? It stands for property technology and it’s the use of information technology (IT) to help individuals and companies research, buy, sell, and manage real estate. It streamlines the process of real estate transactions by providing efficient ways for people to find information and make decisions about their property. Did you know that over the last decade, more than 9000 proptech companies have popped up across the globe?
PropTech is made up of two main segments: Commercial Property Tech and Residential Property Tech. Commercial Property Tech is all the digital products developed by real estate tech companies to make it easier for companies to manage their buildings, leases and tenants. Residential Property Tech is all the digital products developed by real estate tech companies to facilitate the way people own or rent apartments and houses. In both cases, PropTech can save time, simplify processes and reduce transaction costs.
How PropTech Streamlines and Connects Real Estate Processes
PropTech has the potential to dramatically streamline and connect real estate processes by providing useful data that helps individuals and businesses make more informed decisions. For example, 360-degree videos can capture details of the property much more so than images, allowing for a more realistic depiction. Additionally, augmented reality (AR) and virtual reality (VR) technologies have many benefits when it comes to examining properties, saving time and money on inspections.
On top of that, there is data now available online that can enable prospective owners, investors and other stakeholders to gain a detailed picture of property prices, trends, and influencing factors. Gathering this data and analyzing it can be time consuming, but brokers can use automation tools in a number of ways to speed up this process. Automation tools are also a powerful way to help brokers eliminate unnecessary communication with clients, allowing deals to process faster as market data is always up to date and quick to access.
Benefits of Using PropTech
Exploring PropTech can provide a lot of benefits within the real estate industry, making it easier and more efficient to research, buy, sell and manage properties. It can give you access to all the latest listings in the market so that you can stay up-to-date with new developments. Additionally, technologies such as big data or blockchains that are emerging into PropTech help with transparency across the industry.
For property managers, there are many advantages of using PropTech too, such as being able to easily source tenants or promote a property. Additionally, rental platforms such as apps help reduce vacancies by quickly and easily connecting tenants and landlords. Furthermore, buildings which use PropTech are associated with quality and often seen as more valuable than those who don’t incorporate this kind of technology.
Research on PropTech Success and Current Trends
In terms of research, the PropTech market is booming with more and more companies investing in its potential. Matterport has been one of the most successful real estate SPAC listings this year, and the interview delves into the company’s ambitions after raising plenty of new capital. We’re also seeing a trend towards eSigning becoming the norm for facilitating real estate transactions - thanks to providers like DocuSign - and it looks like the property management market is expected to reach over $37 billion by 2029, according to Fortune Business Insights.
Finally, we're beginning to see more interest in fractional real estate investments through platforms like Cash Portal - which makes it easier than ever to syndicate properties and make them available to a wider range of investors. All this indicates that PropTech is here to stay and it's going to revolutionize how we buy, sell and manage property in the future.
Top Companies Currently Utilizing PropTech
Now that you have an understanding of what Proptech is, let's take a look at the top companies currently utilizing it. A great example is Hard Hat Real Estate currently leverages LiDAR scanners to create 3D renderings of existing structures. Reonomy is also one of the dominating fintech and proptech software database companies that provides proptech Big Data and Machine Learning-based insights for Commercial Real Estate agencies, brokers. In addition, they have a list of big-name partners such as Cushman & Wakefield, Brookfield, CBRE, Jones Lang LaSalle (JLL), Lee & Associates, and JPMorgan Chase.
ManageCasa offers all-in-one mobile and web property management solutions that allow users to access the proptech platform. Moana Ventures, Woodland at Gilbert’s, and Make it Berlin are among the most popular clients of ManageCasa, one of the leading real estate technology companies. With their revolutionary technologies transforming the real estate industry in incredible ways, there's no doubt that Proptech will be a major part of our lives for years to come!
So, what is PropTech? In a nutshell, it's a growing industry that uses technology to help streamline and connect the various processes and participants in the real estate market. This can be anything from helping buyers find their dream home more easily, to making the selling process simpler and faster, to helping landlords manage their properties more efficiently.
The beauty of PropTech is that it's designed to make life easier for everyone involved in the real estate market. By using technology to streamline and connect processes, everyone can benefit from a more efficient, more streamlined real estate market.--> // ]]>