Over the past few years, the property sector has slowly been infiltrated by Property Technology, or what is popularly known as Proptech. Following the pandemic, the real estate industry felt the tremendous need to implement technological solutions in order to cut down on its losses. This is when the sector finally saw the potential of using Proptech more extensively.
This particular industry has been slow on the uptake of using technological tools, but the last two years saw the exponential rise of the popularity of Proptech companies. Real estate giants are now looking for Proptech companies to collaborate with Proptech solutions to add to their core businesses.
What is Proptech?
Proptech collectively refers to the ultramodern property investment platforms that make use of the latest technology to help prospective buyers view properties without having to move out of their houses. In today’s fast-paced society, property-viewing is a lengthy, time and energy-consuming process that clients want to avoid. Proptech is the perfect alternative for this as it enables the clients to view multiple properties in a short time.
Technological tools like Artificial Intelligence (AI), machine learning, and Robotic Process Automation (RPA) have enriched the Proptech best practices. This disrupts the traditional real estate industry and forces them to update their structure to better fit into the modern digital world.
So, where can the Proptech companies take the industry? Let us take a look at the current trends.
What Are the Hottest Proptech Trends to Look Out For?
Proptech employs technologies that ensure that the presentation of properties is done in real-time. It provides a systematic and comprehensive evaluation of these properties for the benefit of their client. Some latest trends prevalent among the Proptech companies are making them the talk of the town at this moment.
Virtual Property Tours:
The pandemic opened up the market for new investments as property rates fell drastically. This opportunity was seized by buyers who were provided with Proptech solutions like a virtual property tour. Over the last two years, as restrictions became a norm, the demand for virtual property tours for investment purposes increased by several manifolds.
In support of this theory, Google shows an upward curve of searches with the term “virtual tour” for the last 5 years with a sudden spike since 2020. What’s more, Proptech companies even use interactive 3D floor plans to customize the property according to the client’s wishes as much as possible. This use of machine learning helps the agent connect with the client better in spite of the distance.
The Proptech industry is dabbling in digital advertising solutions for new potential customers. It has resulted in the emergence of new digital advertising platforms that are keen on taking up these projects. An additional advantage is that they are easily customizable and more cost-effective than traditional board advertisements.
Digital advertisements reach a wider audience than traditional advertisements as people spend most of their time on the internet now, be it for work, educational or leisurely purposes. Some of these platforms host interactive localized communities where buyers can discuss properties among themselves to weigh their value for money.
Robotic Process Automation of Property Management:
RPA uses several software or bots to perform regular tasks at the property site without human intervention. These tasks usually do not need high-level decision-making skills, so automation of such clerical jobs requires only a one-time investment in the software and its maintenance, rather than paying regular wages to in-house clerks at the company.
Jobs like contract regulation, collection of signatures, and sanctioning approvals between multiple vendors at the property site can be automated. By using bots that gather data on the buyers and sellers and maintain this data before drawing up compliance reports, Proptech companies stay ahead of the game.
This is a more cost-effective alternative to traditional realty management. The Financial Express reports that there has been a 10% to 40% reduction in the cost of business operations for the companies that have used the RPA approach.
Thanks to RPA, the employees can focus on more important duties that demand human interaction. These tasks involve interacting directly with prospective clients – both buyers and sellers and contribute directly to the revenue generated by the company at the closure of each deal. There are fewer chances of human error, which ensures more accurate results supporting easy data compliance.
Increased Demand for Smart Homes:
Property values now have a new parameter – how smart can it be? With the rapid spread of digitization in every sphere of life, the current generation is looking for smart homes that are equipped with technology that can be controlled remotely.
According to a survey conducted by Rentcafe in October 2020, at least 62% of young buyers and renters prefer having their property pre-equipped with smart technology. They believe that even commercial and multi-family buildings should have smart locks installed in this day and age. Proptech thus holds a special appeal to this demographic as they can connect to their digitization needs and serve them properly.
Statista predicts that household penetration of smart home devices will be around 40% by the end of 2021 and 57% by 2025. Latest Proptech trends have taken this into consideration and started to promote smart homes.
A Rise in iBuyers:
An iBuyer is someone who conducts all the property transaction processes online. Traditional realty sectors usually stay away from such buyers as there is always an increased risk of being duped in some way as everything happens digitally. But Proptech has turned the tide the other way.
A 2021 report from Opendoors has found that at least 7 out of 10 young sellers are willing to sell to an iBuyer private real estate company. This trend is growing fast as digital solutions are safer and more secure than ever at this moment.
Proptech is the new future of the property investment sector. With its implementation of AI and cloud-based technology, real estate transactions have been made more transparent and reliable for both the client and the agent. In the long run, Proptech will inevitably stay ahead of the real estate competition in this age of digitization.