Proptech is one of the latest buzzwords in the property industry today. It is known as the new driver of innovation and is said to be the main modern remedy for estate agents who are struggling with high piles of paperwork and disorganised records across different spreadsheets.
What Is Proptech in Real Estate?
Proptech or property technology refers to all the different tech tools that estate agents and property experts use to optimise the way that we buy, sell, market, manage, and research properties. The set of innovative technologies is also referred to as Retech, Real Estate Tech, or Realtech.
Types of Proptech
There are two main types of proptech today:
1. Residential Property Tech
Residential proptech is all of the digital products that have been developed to better facilitate the way that people own or rent properties. This can include short-term rental platforms such as Airbnb and are often utilised heavily by property management companies such as UpperKey. The range involves various products such as property search platforms, property sale tools, real estate closing tools, property management tools, financing tools and loan management systems, mortgage lender software, and more.
CRETech refers to Commercial Real Estate technology for commercial properties. This sector of the proptech industry covers all the tools and programs that are used by companies and individual commercial real estate professionals to effectively search for, run, rent out or sell offices, warehouses, industrial buildings, and other commercial and retail property assets. It involves property search platforms and listing marketplaces, property management tools, evaluation and financing tools, constructions planning and management tools, and asset utilisation software.
How Proptech has Changed Real Estate for Landlords and Tenants
When it comes to how proptech is changing real estate, it has brought a lot of innovation into the everyday routine of almost everything in the real estate market including property managers, landlords, tenants, brokers, investors, buyers, and more.
For landlords and tenants, proptech real estate tools have significantly changed the way that the two interact. Proptech has allowed landlords to get detailed insights into how tenants are utilising the space through networks of sensors and smart devices that can alert them to problems such as repairs that might need to be carried out and reduces the need for landlords to go and inspect their properties in person since all the data about the maintenance and security of the building can be accessed at their fingertips.
Real estate prop tech tools have also enabled better communication between landlords and tenants, contractors, agents, and other professionals with data storage and information caching to ensure that information from previous conversations does not get lost. Virtual reality prop tech in real estate means that it has become easier than ever to facilitate things like house tours, viewings, and even home inspections virtually, allowing both landlords and tenants to do all this from the comfort of their homes.
Proptech Benefits for Investors
For those who are investing in residential or commercial property, proptech has brought about more accurate construction planning. This helps to reduce or even completely eliminate the chance of critical errors being made or deadlines not being met in the construction process, which has particularly benefitted property developers by reducing the risk of loss of large amounts of money.
Along with this, proptech tools provide developers and investors with more access to improved market research that can be used to track the development, investment, rental, selling, and buying opportunities in a certain area. It’s also made it easier for property investors to secure contracts without the need to use a middleman that might have alternative interests in the purchase of the property and the sale process.
Further Real Estate Transformations With Proptech and Big Data
The way that big data is collected and put to use can become one of the main drivers for your success in the real estate industry. According to the UpperKey, these are some of the key areas where new proptech tools can be used to utilise big data, automate processes, and improve the efficiency of running any kind of property business:
With proptech, real estate professionals can paint more accurate pictures of the future risks and opportunities of any given property based on several factors including geography. Big data analytics using proptech tools allows for unprecedented granularity when conducting market research that may not have been possible in the past.
Improved Property Marketing
Big data in proptech can also improve how properties are marketed for sale or rent. There are various tools available that real estate professionals can take advantage of to further refine their target buyers and audience, to come up with offers that are more suitable for them.
Proptech and big data can be used to create a clearer predictive analysis of the various risks that might be involved in investing in certain properties or property development projects.
Better Development Investments
With proptech solutions, big data can be applied to residential development. This is one of the main examples of how technology has transformed the property industry as we know it. Tech-minded property developers can benefit from granular data analysis, ultimately gathering deeper insights into the best areas to develop new properties and what the potential residents are most likely to be interested in when it comes to facilities and amenities.
Automation of Back Office Processes
Along with big data in real estate that is about structuring large data amounts, there are also various AI and machine learning tools that can be used to make this data more actionable. AI can automate a variety of back-office processes from email marketing to search prediction functionality, to free up real estate professionals’ time.
Many proptech tools are a part of the Internet of Things (IoT). This refers to a smart network of devices that are always sending and receiving information. In the property industry, these devices can be used to track the overall state and condition of a property such as the security, maintenance, and temperature, which can help property owners, landlords, and property managers learn about potential issues before they worsen.
Every professional, homeowner, and tenant today has likely benefitted in some way from the boom in proptech tools, programs, and devices that are now available.