Why is Proptech Booming in the Real Estate Industry?
Today’s Global Business Environment prompts businesses to be more technology-dependent. To remain strong in the fierce competition, companies need to adopt and integrate their businesses with the trends and technological developments happening around them. As such, one of the industries witnessing a sudden boom in the use of technology is the Real Estate industry.
Property Technology or “PropTech” is the phrase used to describe the wide utilization of Technology in the field of Real-Estate. According to a study, by 2025, the Global Real Estate market is likely to generate a revenue of $4,263.7 billion. Taking into consideration, a recent account from December 2020 stated that “81% of real estate organizations plan to use new digital technologies in traditional business processes.”
Proptech often extends to the following sectors:
FinTech refers to financial technology businesses that use contemporary digital methods to administer commercial services. Everything from banking apps that allow consumers to review their transactions and financial status to online payment methods that allow consumers to make a quick payment with the use of smartphones and financial tools that help financial institutes in making a lending decision is an example of FinTech.
Smart real estate includes smart technology that helps in making smart buildings and smart homes. One of the most convenient uses of IoT has been in making our home appliances accessible through the internet. IoT helps to strengthen the security measures of properties and also helps the residents to control the home appliances through smartphones from one place.
ConTech broadly refers to the combination of Construction and Technology. This intersection of construction and technology has helped in the efficient planning and building of properties, reduced costs, and decreasing risks in the construction factor. They include technologies such as 3D modeling, Data Analytics, Virtual and augmented reality, etc.
Technologies used in PropTech:
- AI and Machine Learning:
AI and machine learning with their capability to learn data and make decisions is a great help in real estate technology. With AI and Machine Learning, the online marketplaces can be optimized and suggest properties to potential buyers based on their preferences, traits, and values.
Chatbots on the property search sites can be used to answer the queries of buyers efficiently anytime. These chatbots with marketing strategies may be used to increase one-to-one communication with customers, sending productive information about properties.
Virtual and augmented reality:
Most potential buyers often prefer to survey a property on the internet on their own. With the help of Virtual Reality, their experience can be made more exciting and lifelike. Realtors can create virtual reality tours for properties to help buyers to get acquainted with the property. This also helps in providing experience to potential buyers who cannot visit properties in person.
For buildings that are in the planning stage or under construction, virtual reality can help buyers get a walkthrough to get an experience of the property.
Internet of Things:
IoT has been one of the most helpful and convenient technologies to use in real estate. IoT has made everything, from property security issues to building management easier and efficient. Home automation systems can integrate surveillance cameras with motion detectors and alert the users of any suspicious activities. Smart locks can be used to secure houses. These smart locks alert the user if any dubious entry attempt is detected. These devices also alert owners or property managers of potential problems and even suggest predictive maintenance.
Uses of Technology in the Real-Estate Industry:
Even though Real-Estate was one of the industries that were slow on adopting digitalization of its processes, now under the surface technology is completely transforming the industry. Some of the uses of technology in real estate are:
Repetitive Task Management:
The real estate business involves a lot of administrative work time and time again across a lot of properties. This time spent on paperwork can be invested in a lot of different activities that may benefit the business such as networking, working leads on social media, or researching new properties.
Now with the help of automation essential operations of the industry are carried out with technologies like email and drip campaigns for marketing, automated appointment scheduling, technologies that target prospects and communicate with them, and even automation in commercial scope with portfolio management is possible.
Online Real Estate market:
Online Real Estate Marketplaces sometimes can be an unsafe place as it mainly depends on face-to-face meetings between the buyers and brokers. Many times buyers are swindled out of money by scammers who give false information on properties. However, with the help of technology the real estate marketplace has become relatively secure and credible.
The online marketplace helps you to browse through a list of properties and houses matching your preferences from anywhere and anytime. These online marketplaces have authentic information about properties that are validated by officials. They help you to take virtual tours of the house through smartphones. These tech-enabled brokers allow you to purchase your choice of properties without the need for exorbitant broker fees.
- Price Refinement:
It is important to negotiate on the cost of property well, as it is a large asset most people own and there is a lot of cash at stake. The price estimations from brokers are often uncertain as they mostly rely on some neighborhood factors and house features to make an evaluation. With the use of technologies like Artificial Intelligence (AI), and precise mathematical modeling, the estimations made are more accurate.
This enhanced technology allows buyers to make smart real estate purchases as they not only include the factors regarding the house in estimation but also include factors regarding the area and surrounding. These designs take account of everything from historical crime statistics to noise levels and also about nearby schools and markets that may affect the cost of the property.
Smart Devices for Property Management:
The Internet of Things is a system of interrelated internet-connected devices. These include everything from Google Home and Amazon Alexa to devices that are fitted with sensors and WiFi connectivity. These devices are starting to be integrated with rental properties and usually do not require human help to transmit data. They allow landlords to keep a check on the property by monitoring the security risks. It also helps tenants to manage their home devices from one place. All the devices connected to the Internet can be managed from a smartphone or tablet making it more convenient. . It helps in optimizing the use of devices which helps in saving power and money.
Borgfy is an organization with some of the most intellectual minds, working passionately and helping start-ups, SMEs, MSME by giving shape to their ideas and developing their products.
At Borgfy, we have experts who are experienced in building up all sorts of projects. We can help you to integrate your real estate business with the latest trends of PropTech that will help your business to become more efficient. To get more information about the services get in touch with us at firstname.lastname@example.org or visit our website https://www.borgfy.com.