Incorporating modern technologies into the real estate sector has created a wide range of opportunities for investors and individuals. The experienced businessman Alexander Studhalter knows a thing or two about Proptech. He believes that all professionals, regardless of their field, benefit from new technologies that are upscaling the real estate sector.
As such, professionals who have embraced tech software have seen accurate, faster, and seamless transactions and operations in the property industry.
The Proptech definition & property technology types
Proptech is the tech software real estate experts use to heighten processes of buying, selling, marketing, researching, and managing properties. The incorporated and innovative technologies are also referred to as Retech, Real Estate Tech, thus aligning Real Estate and technology.
Alexander Studhalter explains how Proptech intersects with several sectors, including:
- Smart Real Estate – Smart buildings are being built and managed using new technologies according to automation, connectivity, and sustainability in this Proptech sector. Using smart lighting systems is one example.
- Shared Economy Real Estate– a Proptech platform that provides shared use of the property. Airbnb and WeWork are two examples of Proptech companies driving the sharing economy.
- Fintech (Financial Technology) – The financial sector assists businesses and customers in accessing financial services. Real Estate Fintech brings together different industries to streamline financial services.
Types of Proptech
The Proptech industry is comprised of two types which are discussed below.
- Residential Property Tech
Real estate technology companies advance digital products to expedite how individuals rent or own houses and apartments. Airbnb and Lyric are short-term rental platforms for residential properties. Its wide scope is determined by the following factors:
- Property Sales Tools
- Financial Tools (alternative financing, brokers, and digital lenders)
- Property Management Tools
- Loan Management Tools (Loan Securitization)
- Property Search Platforms
- Mortgage Lender Software
CRETech is an abbreviation of Commercial Real Estate or Commercial Real Estate.
Proptech Real Estate sector incorporated individual professionals and companies to rent efficiently and sell retail office property and industrial assets. Generally, CRETech is the marketplace for brokers such as Biprox and LoopNet.
The sphere of CRETech is defined by:
- Asset Utilization
- Evaluation and Financing Tools, i.e., debt financing platforms and transaction underwriting
- Property search platforms like brokerages CRM, listing, and marketplaces.
- Property Management Tools, i.e., Internet of Things
Alexander Studhalter on how technology has elevated the Real Estate Industry
According to the Swiss Entrepreneur, Proptech disruptions have reshaped the Real Estate Market for everyone involved. Included are brokers, investors, letting agents, tenants, and landlords. In this respect, says Studhalter, technology has elevated the wider spectrum of the Real Estate industry by:
- Easing data collection and improving AI-driven marketing
Proptech solutions help screen and evaluate advancements such as leasing, investments, selling, and buying processes. The ever-expanding essence of Proptech data analytics ensures documenting of large data sets. It is structured to facilitate more acquisitions.
- Paperwork automation and cost reduction
Utilizing Proptech solutions streamlines brokerage processes to save resources and time on useful tasks like communicating with clients and closing deals. Likewise, Proptech has automated the back-office research process.
- Detailed 24/7 insights
A network of smart sensors (IoT) and devices can enhance landlord and tenant use of space. Using the screen, property owners can access information about maintenance and building safety immediately.
- Improvised market research
Through digital engagements, real estate investors can effectively track development through automated, easy-to-use interfaces. As a result, the process makes it easier for customers to buy, sell, lease, and invest in properties.
How do Real Estate Professionals use Proptech Software?
The Proptech industry is embracing software to engage in several activities. Increasing customer satisfaction, streamlining real estate activities, and managing large amounts of data can be easily done. Therefore, real estate professionals utilize Proptech software for:
- Listing services
Properties for sale are shared by real estate professionals so clients can view them. The online database makes it easy for customers to find properties on sale based on their preferences and price ranges.
- Real estate marketplaces
Proptech software connects real estate professionals with potential clients, including brokers, realtors, and property managers. Proptech software enables smooth exchange and transaction of services.
- Building operations
Real estate professionals can utilize Proptech software to keep their properties up to date, operate and manage their building activities. This involves plumbing activities, building system configurations, and HVAC systems.
- Tenant experience
Proptech software allows house occupants to gain robust property operations and experience in a fully integrated environment. Building management in conjunction with occupant experience is made easier through the software.
Real Estate Technology Trends 2022
Many property tech startups have emerged in recent decades, bridging the gap between tech and real estate. Studhalter examines how Proptech is reshaping the real estate industry.
- Artificial intelligence (AI) and Machine Learning (ML)
The purpose of big data in real estate is to structure vast amounts of data, so ML and AI make it more useful. In addition to robust research predictions, AI will also improve customer-centered life events.
- Internet of Things (IoT)
IoT is a smart technology that sends and receives information on constructing buildings and detecting defects. Through IoT, property managers can monitor buildings’ security, maintenance, and temperatures using computers or smartphones.
- Proptech big data and digitization
Big data accumulates and evaluates data in real-time from all aspects, from household residence to complicated telecommunications and corporate facilities. Using structured data sets, real estate companies and Proptech realtors can determine accurate pricing models and potential risks.
- Virtual Reality (VR)
VR will enhance the home buying experience and online search alongside integrating virtual tours of properties through augmented reality technology solutions.
Alexander Studhalter’s concluding point
Real estate has undergone many transformations as a result of new technologies. Incorporating modern technologies into the property industry is therefore an excellent way for the sector to chart its future trajectory.It is Alexander Studhalter’s firm belief that new technologies could unlock a goldmine of real estate success.