Technology has evolved to such a level that not a single aspect of our lives has been left unaffected by it. From every chore that we perform to the food we eat, requires some form of technology. In fact, we are getting used to it, it has made our lives easier, faster and smarter, and we do not want to get rid of it. Since technology has affected every industry to unprecedented levels, the real estate industry could not have been left behind. The real estate industry has also seen some major trend and shifts.
What is PropTech?
PropTech or Property Technology is Technology aimed at the real estate industry and positioned to change the way we buy, sell, and manage property. PropTech includes technological innovations and digital transformation that are developed for and implemented within the property Industry.
Most people are confused by the word PropTech, if you are one of them then here is an explanation for you. PropTech is the acronym of Property Technology and is referred to any technology for the real estate business. It can include software, hardware, materials or manufacturing. It ranges from property portals to the 3d printing and solar bricks.
The reason PropTech has been so popular these days is that the investors love to spend their money on this phenomenon. The investments which were done in property technology raised from $186 million in 2011 to $2.67 billion globally in 2016. And guess what 2017 data shows that venture capital investments reached to $12 billion. This rapid success of the PropTech has revealed extraordinary chances for real estate agents to improve their businesses and earn incredible profits. The technological trends have changed the property industry, some of the trends are described below which enable the agents to manage their businesses like a pro.
Every real estate agent considers the location to be the most important aspect of sales, Geolocation technology transforms the maps into a complete set of instructions about the properties. The benefit that this technology provides to the agents is that they will be able to make more precise and accurate valuations and the decisions will be based on economics-strategies rather than on taking chances.
- Drone Visual Technology:
Drone technology is all about gathering data when it comes to PropTech. With the help of drone tech, the agents are able to accumulate crucial data about assets and properties. The agent can provide realistic and user-driven experiences by taking pictures and high-quality videos. As the drones now capture full 360-degree views of the properties, which enables the potential buyers to visualize the location and its surroundings. The videos and pictures can also be uploaded on the social media pages, websites or can be published in the brochures to attract the buyers. Moreover, drone tech is also useful to the landlords, property managers and tenants through which they can inspect buildings and track problems.
- Augmented and Virtual Reality:
If you think that VR is only centred for movies and entertainment then you are mistaken. VR has become the style that the property market is embracing, virtual reality has brought gamification in the real estate industry. The buyers do not have to travel from one place to another to visit the property, thanks to this amazing tech. The potential clients are now able to take virtual tours of the places that they have interest in. They can see the objects moving around and clearly synchronize every detail. Augmented reality apps also enable the agents to accentuates and describe parts of the property more accurately.
Other than that money and time of both the parties is saved due to the operation of VR. As the investors do not have to visit the place in person, and the buildings that are in progress or haven’t built yet can be also visualized by VR. The VR videos can also be issued at different channels to target wider audiences.
- Big Data:
Big Data is everywhere these days. It helps the property agents to align the prospective home investors with the productive and desirable properties in a more accurate way. Moreover, it also helps the buyers to speed up the process of finding and incorporating binding offers on properties.
- Internet of Things (IoT):
IoT is one of the biggest trends that is transforming the real estate industry. Basically, IoT consists of physical structures equipped with sensors that are read by the applications and translated into digital data actions. In building management systems, the IoT helps to improve the building performance and user experience through the use of sensor-generated data. The Edge, a 15 storey building in Amsterdam has been labelled as the smartest building because it is embedded with 28000 sensors. These sensors make the building safe and secure as they are able to monitor and report issues, moreover, they also sense and gather environmental changes and report temperature, humidity, and light.
Furthermore, the IoT enables the agents to manage their business by integrating into the smart devices and automating simple tasks, making decisions, eliminating mistakes and adapting to environment. It also eases job functions like predictive analytics, customer support and marketing automation.
The blockchain is also widely affecting the property industry, it has eliminated the need of the third party actors and also their costs, though it has enhanced the liquidity of property markets by getting rid of the need for most of the regulations or transactions.
- The bots:
Realtors have to get benefited by the chatbots or lose the competition. Since the bots are active at any time as compared to the realtors who need to sleep, so the bots are preferred when a clients want information at night.
PropTech is the future:
Though the buying, selling and owning of real estate has to be the physical affair but in the future, all transactions will be done digitally. PropTech has the potential to fully transform the industry and the one who adopts it will manage their businesses like pros. The use of lease managing software, cloud connectivity, 3d modelling programs and data exchanging platforms have helped the agents to transform their businesses, there are still many technologies to come up and advance the property industry.