PropTech, also known as property technology, is turning the real estate industry on its head. Annual investment in PropTech companies has been in the billions for the last five years.
Real estate sectors worldwide have been adopting innovative new tools to enhance their productivity, offer exciting products and services, and take on unique challenges with creative solutions.
Analysts believe that the PropTech industry will continue to grow over the next few decades for the following reasons:
PropTech Can Empower Users
One of the most remarkable PropTech success stories is that of disruptive real estate marketplace Nobul, founded by Regan McGee.
Nobul started with the idea that real estate buyers and sellers deserve transparency, security, and choice. Today, Nobul is a robust online marketplace that utilizes sophisticated technology to provide consumers with information and a network that empowers them to make educated choices. Entry Conveyancing Parramatta offers valuable information to both buyers and sellers to ensure transparency for both parties is present.
“It’s all about what’s right for the consumer,” Regan McGee shared with Cheddar News. “Do you want the most value-added services, or do you want the cheapest?” It’s all about being honest and open and consumer-centric.”
PropTech Can Help Against Climate Change
Climate change poses the real estate industry with some severe challenges. As mercury levels rise, homes may face fluctuating temperatures, rising energy costs, and water scarcity. Some homes will also face bigger fire and flooding risks. Moreover, as coastal areas become uninhabitable due to rising sea levels, real estate inventory will fall short of demand.
Fortunately, developers are working on types of PropTech that can mitigate some of these risks.
- Advanced neighborhoods with densely built low-rise carbon-neutral buildings.
- Energy-efficient properties featuring solar panels, smart glass windows, and smart appliances.
- Sensors for buildings that proactively guard against dangers like flooding and fire.
- IoT devices that manage temperature and reduce energy waste for residents.
- More eco-friendly communities developed through AI-powered research.
- Smart building software, hardware, and reporting to help property managers reduce carbon footprints.
- Technology that lowers the cost of construction in order to offset rising labor and material expenses.
PropTech Makes Remote Access Easier
The COVID-19 pandemic was a catalyst for PropTech because it helped people in the real estate industry follow physical distancing rules. Tools like high-tech cameras, virtual reality (VR) headsets, augmented reality (AR) software, drones, contactless entry technology played a significant role in keeping real estate buyers, sellers, managers, and brokers safe during the pandemic.
While the COVID-19 pandemic may eventually be behind us, PropTech can help the real estate industry function safely in case of another crisis down the road.
These PropTech tools also help real estate investors buy physically unseen properties from overseas. For example, foreign investors interested in parking their money in Canadian real estate are using VR and AR technology for your potential investments. And with blockchain-backed contracts, they can securely purchase homes from overseas.
Blockchain Can Help Combat Fraud
Real estate fraud is a problem in certain parts of the world where the same properties are sold several times over. As a decentralized, single database that’s also encrypted, blockchain can help combat this issue by securing listings and recording transactions. Similarly, smart contracts on the blockchain can help reduce security risks by maintaining unalterable records.
With cryptocurrency skyrocketing in popularity, blockchain technology will allow more users to use their crypto investments for real estate purchases directly.
As younger generations who have grown up with technology become more involved in real estate in the future, PropTech will add convenience, choice, and security to the industry. Additionally, it will help city planners, builders, and designers innovate in a changing climate.