We live in a fast-paced world that is run by different technologies. Nowadays technologies are transforming every single aspect of our life. New apps and services emerge to help people in their work duties as well as personal life. We decided to explore 4 new tech trends that are currently shaping the real estate industry.
- What is Proptech and how is it impacting the Real Estate Industry?
- 4 Proptech Trends Impacting Real Estate in 2022
- Coming soon… PropTech trends shaping the real estate industry in 2022
What is Proptech and how is it impacting the Real Estate Industry?
“PropTech (also called Real Estate Tech, Retech, Estech, or RealTech) is short for “property technology.” The term refers to the software, tools, platforms, apps, websites, and other digital solutions that real estate practitioners employ, from brokers and appraisers to architects and construction managers. It encompasses Contech (construction technology) and CREtech (commercial real estate technology) and overlaps with Fintech (financial technology). PropTech improves efficiency and facilitates Real Estate activities, including buying, selling, leasing, managing, appraising, financing, marketing, developing, designing, building, and investing.”
4 Proptech Trends Impacting Real Estate in 2022
Let’s go through some of the trends that continue to shape Real Estate industry in 2022
1. Co-living and co-working
A basic sharing economy principle states that “Unused value is wasted value”. Airbnb is a prime example of how to increase efficiency through utilization. In fact, they motivate people to rent their unused properties mainly for the short term period. Nowadays almost anyone can utilize their empty property for earning extra income.
The best part of flexibility is that individuals are able to manage their real estate business straight from their devices. An app installed and no third-parties needed. Wow! Some decades, no one would ever think about such a scenario. However, this is just one of the reasons why homeowners are not necessarily trying to sell their properties. Why would they? If they can easily earn significant amounts just from renting them.
Surprisingly or not, in London and New York City, you can find a transformed model of housing that focuses on community-driven experience. Moreover, you can discover spaces that inspire you to work everywhere you go. By connecting two previous (co-living, co-working) ideas we can find a trend of adaptive spaces. Property can be used as accommodation and working office all in one. The following companies are driving the co-living and co-working industry:
2. Technologies allowing in-depth comparisons and analysis with Real Estate Data
An unimaginable amount of information is available on the internet. However, it is very often fragmented and not standardized. Therefore, developers are trying to come up with PropTech solutions. For instance, they conduct analyses, compare data, help with fast research, and unite all data just to make it clear for all users. BeaconSageRE makes you more efficient by automatically collecting detailed data from MLS. Agents can download the detection app and reach those who drive by, thanks to the Bluetooth beacon. Also, you can enhance your daily investments by using advanced technology that evaluates data from the real estate market.
Rentier is another solution for automated valuation of property, rental price estimation, research, and investment potential assessment. In sum, easier access to real estate data is changing the way how private individuals and real estate investors buy, sell, and rent real estate.
3. Smart Property Management
Have you already heard about the Internet of Things (IoT)? As the devices become “smarter” and more connected, the fast-growing trend is expected to touch each major industry in the following years. Property management can be considered one of the fields that are positively impacted by IoT.
IoT is a system of physical devices embedded with sensors that are connected to the internet for the purpose of collecting and sharing data.
There are IoT devices for industrial and enterprise applications: smart meters, security systems, smart city technologies (to monitor traffic and weather conditions). But also for individuals usage, there are smart TVs, smart speakers, wearables.
As for the real estate industry, there is already a growing portion of devices that can be used for smart property management. Smart devices range from opening doors solutions to effective energy consumption solutions, property security, media control, etc. Hence, creativity is the only limit. Projects of complete home management look like from another world, maybe Aime from CosineLabs could be the first step for your property!
For example, Haltian can help you to “create” a fully smart office or washroom. Probably, you’ll be surprised how artificial intelligence helps to save energy, prevent risks, and draws up reports. Wattabit is another interesting example for those who are interested in the smart city concept.
Undeniably, Artificial Intelligence shapes the real estate industry. Human intelligence seems to be replaced by software. In this case, the impact is well described by Forbes: “AI can improve and enhance almost all digital consumer experiences delivered by property agencies (Forbes).” Due to high competition in the real estate market, it is crucial to provide an experience that wins. Hence, we would recommend including 3D models, visualizations, digital floor plans, virtual tours, and so on. Those solutions allow photographers, brokers, and individual owners to save time and focus on their real expertise.
Do not miss the great solution of AI-backed floor plans by CubiCasa. The revolutionary software allows the user to scan a property in 5 minutes and get a professional floor plan within the next business day. If you want to create an immersive experience for the property, try to create a 3D showcase of the house. One bonus point is to include visual area plans. This would help you to communicate “visually” with your customers and stakeholders.
Coming soon… PropTech trends shaping the real estate industry in 2022
Real estate is a great industry to be in at the moment, especially on the PropTech side because there is a lot of funding and companies being created. I believe the industry will change considering there is so much work to do and many RD possibilities in the field. I think it
is very exciting and interesting on both sides, on the start-up side but also on the big corporate side.
Based on the PropTech Global Trends 2021 it is clear that the above-mentioned trends are shaping the whole real estate industry. Companies also see technological innovation as an opportunity. And from the same source follows that the most intriguing trends are automation, artificial intelligence, and Big Data (data analysis), etc. So dive into PropTech World. A well-crafted strategy could be your competitive advantage in the near future!
Want to learn more about the latest real estate technologies? Then make sure to check out our new blogs. See you soon!