PropTech provides the technological advancements that the real estate industry needs to modernize itself.
Industries across the world are introducing new tech-based solutions constantly to stay ahead of the curve. For instance, the introduction of AI in AgriTech has helped farmers predict weather conditions. Real estate is not exempt from these developments, thanks to the introduction of PropTech and its benefits.
What is PropTech?
PropTech is an acronym for “Property Technology.” It refers to the technology curated for the real estate industry for commercial and residential properties. It is a reliable solution to address the shortcomings in traditional real estate methods, such as poor data management and security issues.
In recent years, PropTech has seen enormous growth and popularity. According to CREtech research, it witnessed a steady growth of 12.9 billion US$ in the year 2019 and is expected to rise further.
Additionally, after the pandemic hit, digitization became the norm for every industry, including real estate. PropTech will help companies to stand out in the existing competition in the industry.
Why PropTech?
PropTech’s popularity is unquestionable, thanks to its many benefits. It can be the next best thing for the industry and its stakeholders. PropTech has many benefits that are missing in the traditional real-estate methods.
1 Innovative solutions on the way
PropTech offers innovative and practical solutions for the real estate industry. It is capable of helping stakeholders take better decisions when it comes to property investments. It is taking data analysis in the industry to a whole new level, paving the way for more informed decisions.
2 Application of AI technology
The whole world is aware of Artificial Intelligence (AI) as one of the most influential technological concepts. PropTech is introducing AI-based systems for real estate management. That will reduce any risk or error that might occur due to traditional methods. Be it customer queries, analyzing property value or property management, PropTech will have AI solutions for everything.
3 Increased property value
Technology has a direct impact on the value of any industry, including real estate. The introduction of PropTech is expected to be very beneficial for the overall property management business. This technology will lead to the modernization of properties as well as their management and provide tough competition to traditional real estate management systems.
It will also improve residential areas, making them safer by bringing AI-based security systems. This will attract more customers, increasing the value of real estate.
4 Data management made easier
PropTech resolves the communication issues which often arise between landlords and tenants.
This technology securely stores all the information related to properties in an organized manner.
It overcomes the shortcomings in traditional data management, making the process simpler and more transparent for the parties involved. Moreover, this kind of data management is useful in legal matters.
5 Easier interactions
Often, it is difficult to establish transparent communication between landlords and tenants. This may occur due to geographical and/or technical issues since landlords and tenants do not always share the same space.
PropTech solutions play a huge role in removing these communication barriers by introducing virtual interaction technologies, such as video conferencing, for better communication. This can also be useful in other areas such as housing tours, scheduled inspections, landlord-tenant laws and more
