Is PropTech more than just a Buzzword? We look at what exactly PropTech is and how it is disrupting the real estate industry.
As off 2017, the total global real estate worth reached £217 Trillion. With such wealth spread globally the real estate industry has been a late adapter to new and innovative technologies that other industries have taken advantage of. PropTech attempts to be the catalyst for change in real estate.
What is Prop Tech?
PropTech or Commercial real estate tech is the culmination of several technologies that helps property and real estate business, manage, buy and sell properties.
Prop tech is heavily influenced by a selection of new technology that allows companies and start-ups to offer new and innovative services, these technologies include:
IOT (The Internet of Things)
The Internet of things is a network of internet-connected devices that connect with each other and share data, think of the Amazon Echo, this is a device that shares its network with other devices and uses its voice recognition software.
What does this have to do with Proptech? Well, we see the use of IOT devices in Real Estate already especially in contraction, with the help of smart devices allowing project managers to follow the construction of a development in real time, this helps major increase productivity and allows construction of buildings to be quicker and efficient
We also see the IOT devices in sales and marketing with the use of AR and VR. These devices allow estate agents to market their property virtually to engage in a new way with potential sellers or tenants.
Blockchain is a technology that will change the property industry over the next ten years. We are also seeing the use of blockchains to sell property securely, with the first UK Blockchain property purchase recorded in Manchester. Blockchain will become a major part of the proptech industry and will certainly see new and creative start-ups using the tool as a way to safely transfer information, capital, and real estate.
AI and Big Data
Proptech is heavily associated with the use of AI and Big Data – the use of the technologies allows better automation in their estate management and provides vital information of a property’s performance and can lead to more informed decision making.
The Prop-tech industry is built of start-ups which are heavily funded by investors and major property players. Below are some examples of PropTech start-ups that use the technology mentioned to build services designed to improve the buyer’s experience.
Nested is an online-only estate agent that promises to help homeowners sell their property in 90 days. Nested uses sophisticated algorithms that quickly provides sellers with a property valuation. The process is quick and simple, Nested review’s the valuation and organises an inspection before marketing it on property portals like Zoopla and Right move.
Proportunity is a fantastic tool for first-time buyers who want to get on the property ladder. The website users machine learning to forecast the future value of a property and then allows the buyers to borrow against the estimate by using an equity loan. Similar to the help to buy scheme the one difference is it allows you to use the service on both existing and new builds.
A great proptech start-up that can help estate management teams, GetRentr tracks and records property licensing regulations throughout the UK so agents, landlords, and estates teams can comply with the proper rules and regulations. The start-up review’s property portfolios in real-time and can help cut long term costs and avoid fines.
Clixfix is an online platform for house builders and contractors, the platform allows the builder to manage their customer care operations more efficiently by tracking their ongoing projects, also allowing clients to assign repairs to contractors. Using an online portal, they can easily communicate with the client or occupant, the network allows the contractor to post instant updates as they carry out the works.
These are just some of the hundreds of start-ups attempting to disrupt the property and real estate industry. As the growth in technology advances, we will continue to see more proptech start-ups offering new experiences constantly.