PropTech or the property technology, the latest catchphrase in the market, is changing how the real estate industry operates. It has begun reforming $7.8 trillion real estate market in Australia, by leveling out a sector peppered with inadequacies. It is harmless to declare that 2020 will be an exciting year for PropTech universally.
This one small part of a broader digital transformation in the real estate industry considers both the technological and mentality change of the segment. It addresses the central interrogations of how users experience and excerpt value from real estate. It could be renting, buying, planning, construction, or selling, PropTech is increasingly broad and viable.
PropTech is a Strictly Global Phenomenon
PropTech is indeed changing the face of real estate around the globe. The trend is not just confined to the industries in the United States and Silicon Valley. The UAE is exhibiting an exponential effort to deploy PropTech in recent years, including the initiatives instigated by governmental and regulatory entities, such as Smart Dubai, UAE smart government, and more.
These entities offer outstanding technological services, such as handling the registration of property developers and their projects, investment map portal, providing investors with hands-on information on ongoing real estate investment plans, etc.
Besides, the PropTech unicorns, such as Compass, Homelink, SMS Assist, and Opendoor, encompasses a wide spectrum. And, these startups are radically distinct in scope and essence. It includes a portal, a network of real estate brokers, a property management tool, and a platform for buying and selling homes online.
The Scope of PropTech in Real Estate Start-Ups
Although productivity and technological growth have been relatively slow in real estate compared to other industries, the scope of this new trend is predicted to evolve as time goes by. Earlier in 2019, PropTech startups raised a total of $500 million. As the real estate continues to develop, the business tycoons, stakeholders, and print media are eagerly claiming ownership of this trend.
At present, multiple verticals emerge within this ecosystem. It includes smart cities, innovative buildings, FinTech, ConTech, and more. Several companies, both SMEs and large groups, invested directly in real estate startups in 2019. This is particularly the case for BNP Paribas, RATP Group, EDF, Nexity, Accor Hotels, and ADP.
- BNP Paribas has invested in Zelok, a startup that is known to streamline the lives of rental candidates and real estate agents.
- EDF and RATP Group have invested in ZenPark, which is a parking space reservation service.
- Nexity has invested in AntiCafé, a popular co-working café chain, and Cocoon Space, rental of the meeting room for SMBs and freelancers.
- ADP and Accor Hotels have invested in OnePark, which is a car parking reservation platform online.
Since 2014, the real estate sector has been experiencing steady growth, and this investment money allows them to quickly bring in this service to the market by knocking down long-standing barriers. All these indicate how the property management sector has just begun its digitization process.
Also Read: 3 Technologies Disrupting Real Estate Today
Real Estate Professionals Must Push the Limits of Innovation
Today, the real estate developers might be immune to this trend; however, ten years from now, it won’t be the same. Now you may find it hard to imagine a real estate company using blockchain to simplify the purchasing process, employing big data to locate land or print 3D models of both homes and properties. But this could be a reality soon. PropTech is what keeps this segment on its toes.
All in all, it’s pretty straightforward that real estate professionals must not fear the change. Instead, they must embrace the PropTech and the new actors that are flooding the market to establish a real relationship with clients today and tomorrow.