Technologies have entered daily life and now we even never allow a thought about what our life would be like, if they hadn’t been developed. Nowadays technologies are anywhere and everywhere, and the trend of their development in various spheres is constantly taking shape. In the continuously changing and evolving environment, it’s vitally important for business to introduce something new to remain competitive. All industries, such as Healthcare, Media & Entertainment, Logistics & Transportation, E-commerce, Real Estate implement new features in their businesses in order to optimize the working process and make it smooth and easy. In this article we will consider the Real Estate domain, how technologies have already changed the industry, what impact it has made and what should be expected in the nearest future.
PropTech in Brief
PropTech is a derivation of property and technology, so literally it means technologies in property. As a matter of fact, it’s the industry and array of innovations aimed at changing how we explore, rent, buy and use the property. Despite the fact that this trend is comparatively new, it has already drawn investments for tens of billion dollars, which is evidence of the fact that the interest in the trend has grown significantly. And this phenomenon is quite explainable: PropTech-products’ main aim is to simplify the Real Estate market for all parties, and optimize the processes.
About PropTech Real Estate Unicorns
What should be done to become a PropTech unicorn? What trends should be followed and features implemented in a startup to draw investments and be successfully launched? Some startups, such as Booking.com, AirBnB, Compass, Opendoor, Homelink already know the answers. These companies initially had innovative ideas that would make their products different from the competitors, which allowed them to attract investors and make a revolution on a traditionally conservative Real Estate market.
Main Advantages & Benefits of PropTech in Real Estate
Companies using modern technologies in their business are chasing various aims. According to the results of KPMG polls for 2019, the main reason why companies launch the digitization process is to help improve efficiencies. The full scheme you will find below:
To reach the particular goals it’s necessary to use appropriate tools, depending on your current business needs. Here we will consider the main capacity of PropTech and highlight its advantages and benefits:
- Digitalization of administrative processes
As it was mentioned above, the aim of PropTech is processes optimization and automation, which led to the reduction of paperwork hence service improvement. Also, there is an option of setting up reminders including rent due dates, viewings, check-in and check-out dates, which excludes the opportunity that a manager can forget or miss something. Legal aspect is another important thing. The software can update the documentation to provide confidence that a manager has a legal contract, notice, etc., and in case of any documentation expiration, the system will be able to contact contractors automatically.
- Virtual Reality
Nowadays it’s supposed to say “time is money”. Nobody wishes to waste time and effort for things that can be done in less time and with maximum comfort. VR allows to have a virtual stroll around a property and assess the layout with interior, and facilitates making decisions considering the purchase. Thankfully to the technology a potential customer can physically visit a property only after the first approval, which is convenient both for customers and landlords.
Read also Taking the Real Estate Customer Experience to a Whole New Level With AR/VR
- IoT & Smart Home
The technology of the Internet of Things is now used in various spheres and the Real Estate domain is not an exception. Currently it’s not uncommon to manage such things as lightning, air conditioning, etc. from our smartphones. It helps us to get rid of necessity to take care of routine maintenance as it’s able to detect the defects. This feature is beneficial since it facilitates the efficiency of space usage, reasonable energy consumption, indoor climate control improvement.
- Online deals & Big Data
1. Online deals. Time saving is considered to be one of the greatest advantages of PropTech in comparison with traditional offline deals. According to KPMG polls, 65% of respondents assume that technologies are able to improve the efficiency and speed up deals closing. Technologies are also able to cut the expenses and make the users’ decisions more informed in accordance with 47% respondents’ opinion.
2. Big data is used as a central driver for decisions-making in more than a half of businesses. It facilitates matching supply and demand, and deals become more convenient for both parties. Special software is able to assess various factors, such as geographic, economic, etc. in order to offer more precise estimations, it all allows to reach best deals.
- Voice search
VS is one of the newest technologies in PropTech. With this feature implemented, search engines such as Google will be able to help you find the property meeting your requirements by voice command, which is pretty convenient.
How PropTech is Changing the Real Estate Industry and What is the Future of PropTech
It has already been mentioned above that the Real Estate market is traditionally conservative and for a long time it was considered that changes are accepted very reluctantly. But in recent decades this theory was refuted, since more and more companies and newly founded startups realized the advantages of new technologies. So did investors, as according to the statistics, Real Estate startups draw the investments for more than 10 billion dollars each year. Moreover, the current situation with COVID-19 in the world makes its own adjustments. People strive to limit their contacts, and modern technologies are exactly useful in such circumstances. There is no exact forecast regarding how long the pandemic will last, but at this moment it’s obvious that nothing will change in the near future, hence we can say that the current situation has also become a trigger for even more dynamic development of PropTech in Real Estate.
Read Also How Custom CRM Software Can Help Your Real Estate Business
It goes without saying that implementation of emerging technologies and new features in any business is an expensive thing, but in the result it allows to optimize the workflow, automate the processes, cut the expenses and become more attractive for potential customers, which is valuable in any sphere including Real Estate. Our experienced team will be glad to help your business to implement the contemporary technologies by developing custom real estate software. If you are interested in introducing something new and beneficial in your business, feel free to contact us, our experts will assist with pleasure.