Technology has allied itself with the traditional sectors and revolutionized the market. Real Estate was no exception, so PropTech (Property Technology or Real Estate Technology) appears. But what is exactly a PropTech? What are its consequences for the Real Estate? How can you keep up with this trend? In this article we will show you everything you need to know about PropTech.
What is PropTech?
PropTech is a term used to define startups that offer technologically innovative products or new business models for the real estate market. It’s a transformation for the industry, it considers the technological changes, the mentality of the consumers, his attitudes, movements and transactions that involves construction, buidings ant the cities of the future.
It represents all the companies that are revolutionizing the Real Estate Market, making it more digital, constantly changing and with new consumption patterns.
PropTech has a competitive advantage over Real Estate because of its ability to bring innovations to every stage of the process by rethinking existing systems. They have a new vision and a desire for reinvention, starting from scratch, want to rewrite tomorrow’s Real Estate industry.
There are two types of PropTech: startups that support real estate professionals, such as tools to enhance their services or their productivity, and startups that want to replace Real Estate professionals.
Some of the innovations that PropTech brings to the real estate market:
- Artificial Intelligence
Artificial Intelligence can streamline the Real Estate sales process with, for example, language processing and image recognition, that can quickly scan purchases and sales documents and import the data into a CRM. In addition, it helps to automate communications between agent and potential customers – sending the right message, to the right customer at the right time, this is essencial to create a relationship. Through the validation of data, communication and workflows automation within a CRM system, Virtual Intelligence gives more free time to the agents to dedicate themselves to the clients.
Blockchain is probably one of the biggest technology in the Real Estate industry, it’s revolutionizing the way transactions take place. This technology adds liquidity to the Real Estate market and allows real estate transactions happened through a simple and less regulated system.
Virtual and Augmented Reality
Virtual tours allow buyers to visit a property with leaving their home. In the case of augmented reality, they may have an almost real experience, as if they were to make a physical visit to the property, or visit the house of their dreams, even before it was built.
- Big Data
The applications of Big Data to the Real Estate Industry allows to identify desires, trends, needs and interests of consumers. Companies use this technology to make better decisions and make strategic moves, adapting their approach to the consumer.
Facilitate the transfer of assets and allow cross-border transactions. Crytocurrency affect the Real Estate market by simplifying the way transactions take place and eliminating many middleman. Property transactions are already being made through bitcoins.
Geolocation allows you to assign multiple features to a location, offering construction data, sales values and points of interest. The Real Estate industry can thus analyze better the location and explore the assets in more detail.
How can you keep up with this new trend in the Real Estate market?
Keep up with industry news, the more informed you are, the better is your ability to antecipate changes in the marketplace and meet the needs of your customers, wherever they may be. Invest in marketing tools and technology. Think! Invest at least two hours a week thinking about how can you improve your work or customer satisfaction. Keep in touch with your customers, ask them for a feedback, the best way to improve customer satisfaction is to meet their needs. Keep an open mind and mindful of consumption patterns, do not forget that the younger generations are the tomorrow customers.
The key is to stay updated. Innovation and technology will not succeed if they do not meet customer needs. Technology is only a way to an end.
Today it’s hard to imagine that a company can use big data to locate buildings plots, apply Blockchain technology to streamline the buying process, print 3D models of homes and buildings, and use virtual reality to offer guided tours of these properties on the internet, but in 10 years, this will be a reality.