Over time, innovative technologies have given disruptive solutions to the real estate market. The fusion of the words property and technology is known as Proptech. Proptech uses innovative applications or software that makes the sale and lease of real estate more efficient.
Proptech has started making its presence in both the residential and commercial worlds after COVID-19 Pandemic. Technology has drastically changed every facet of the real estate business model. The infusion of technology and the internet such as Information Modelling, Artificial Intelligence, Machine Learning, the Internet of Things, Augmented and Virtual Reality, Big data, and Blockchain technology helps to effectively execute projects, customer services, sales, and market activities.
Breaking the traditional methods of real estate marketing, Proptech through, Automation and mechanization help reinvent real estate business models. The new technologies have helped stakeholders to communicate effortlessly. Proptech also led to huge investments after the pandemic, and it is expected to hit 1TN USD by 2030.
With Growing digitization, Proptech has led to a drastic change in the consumers’ and developer’s experience.
Proptech benefits for consumers
The traditional method of real estate for consumers was dependent on personal communication and connection, word of mouth, and physically exploring the property and its neighborhood. All these factors took plenty of time and energy for the consumer to resolve. Then after the invention of the internet in the early 2000s, the real estate space changed its marketing way and focused on listing residential and commercial properties online for easy trading. Over time, technology evolved, and the introduction of innovations such as Virtual Reality, Drone, 3D printing, Artificial Intelligence gives a new way to real estate projects.
Benefits for consumers
- Virtual reality helps consumers explore property and surroundings by sitting in the comfort of home without any physical site visits.
- Drones benefit the consumers to view property and neighbors in real-time remotely.
- Internet of things (IoT) aids consumers in home automation and management. It also assists in home maintenance, energy-saving and improves residents’ satisfaction.
- Big data and Artificial Intelligence (AI) provides customized buying and selling experiences. It also creates a friendly interactive experience among buyers and sellers.
- 3D printing offers a faster solution as compared to traditional methods. It gives consumers a relatively clear image of a finished or undeveloped project. 3D printing is becoming popular among buyers as this showcases them a clear framework and structure of the property.
- Blockchain helps buyers and sellers to connect, create and authenticate contracts instantly without any intervention of brokers.
Proptech benefits consumers in various ways. It assists them in providing solutions to the residents, aids them in management, offers more transparency that helps them to track their transactions. Proptech makes clear comprehension to its customers that avoid misunderstandings and squanderings.
Proptech benefits for developers
Proptech or property and technology is becoming the main pillar for Real estate marketers as well as developers. The use of digital media has increased brand awareness and escalated marketing strategies. With the rise in continued engagement, full-stack services such as advice, finance support, interior designing, etc., have made developers conveniently reach out to their customers. Proptech has also made the cost of brand awareness, engagement, and advertisements comparatively cheaper than the traditional marketing model.
Benefits for Developers
- Virtual reality aids developers in providing an estimated near-reality look of the property to its potential consumers.
- Drones are the best assistant for developers as it helps them market the property via real-time virtual tour. It is cost-effective for the developers and enhances consumer site visits.
- Cloud computing is another supporting software for developers to collect large amounts of data and analyze future trends. Thus, easy access to data improves the management of the business.
- Blockchain provides developers to transparently and effectively facilitate renting, investing, buying, and selling of lands. It also reduces the time taken in land acquisitions and improves asset liquidity.
- IoT, AI, Big Data tools help developers efficiently communicate with consumers, providing them dynamical insights into the property. This also allows developers to predict property values and do risk management with a successful data-driven approach.
Proptech assists developers in target marketing, which increases their reach and provides an interactive experience for customers. It enables transparency in the value chain among consumers and developers. It also offers data-driven decision-making to developers and analyses effective ad campaigns for the targeted buyers. This way helped developers or builders double their reach to customers and even helped them to keep up with the real estate market trends.
In all, Proptech is authentic for both the developers and consumers. It assists them in data-driven analysis for spontaneous decision-making. It is also expected that the demand for Proptech in the real estate space will increase with the growing usage of digital media. Subsequently, Proptech demand among developers and consumers will increase and will improve interactions more effectively.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.