Proptech is already transforming construction, but clearly, we are just starting a PropTech revolution. The real estate sector, in particular, has seen investors and prominent players scramble to grab the opportunities presented by embracing tech in the property space. Real estate is the largest asset class in the United States, and because of this, there are constantly emerging new trends throughout the real estate industry.
The housing market is one of the most significant components of the world economy and has a worldwide value of much more than $200 trillion. The housing market is a business that touches most of the global population, including anyone who owns a house, invests inland, or leases a condo or office building. Real estate is an ever-growing industry, offering opportunities for startup companies to compete for a piece of market share. It is poised for more growth with the way that new technologies are reshaping real estate and affecting everyone involved in the industry.
The real estate industry has been slow to embrace new technologies for some time, but this is starting to change, with the term PropTech being bandied about more frequently. PropTech (property technology) is the popular name for an emerging technology affecting real estate markets, whether in commercial real estate or building industries. Property Technology, also known as just PropTech, can be defined as the use of technology and software that assists with real estate needs in the present day. Proptech is a groundbreaking approach to real estate where technology streamlines how individuals search, rent, purchase, sell and manage properties. Proptech is focused on creating solutions that make real estate planning, management, transaction, and utilisation more effective and more accessible in each phase of the lifecycle of the building.
With hundreds of proptech companies entering the space, real estate professionals must choose which tech solutions will ultimately help their bottom lines. Here’s a brief rundown of the proptech companies and how they are already giving commercial real estate (CRE) professionals a competitive edge in a modern landscape. NREI recently spoke to Dharmesh Ajmera, Partner and PropTech Expert at Deloitte, Jake Fingert, Partner at Camber Creek, a VC firm focused on investing in property technology companies, and Felicite Moorman, CEO and Co-Founder at Stratis IoT, an IoT intelligent apartment platform, about their views of how this space is evolving, as well as how CRE players can make decisions about what proptech products are finally worth investing time and money.
The rise of intelligent building tech is one of the ways that scores of property-focused startups known as proptech firms are trying to harness a growing mountain of data about commercial properties in an effort to harness increasing amounts of data about commercial properties to improve performance. More than buildings, the new ways that tech is being integrated into buildings and homes have seen smart buildings developed with futuristic features. Home automation has grown in popularity, with systems controlling the security, entertainment systems, and the internal environment, amongst many others.