Published on October 6th, 2020 | by Luke Fitzpatrick0
PropTech: Viva La Real Estate Revolution
With the real estate ecosystem as a whole continuing to embrace property technology, significant disruption of the traditional property industry is no longer somewhere on the horizon. PropTech is here and now. It is transforming our environment and the space around us, impacting the way property is built, sold, bought, rented, and managed.
In the ever-increasing complexity of the property landscape, we still don’t know exactly how tech might shape the real estate sector over the next few years. To get the best idea of how this new emerging trend is affecting the real estate industry now and in the long-term, we must first understand exactly what PropTech is.
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So, what is PropTech?
A portmanteau of property and technology, PropTech is the term created to describe the new era of technology and industry innovation within real estate. While we are currently only really in the beginning stages of this rising trend, there is a lot of scope to evolve the industry. Especially as the convergence of cloud of technologies and overall digital transformation of the industry continues to fuel the interest of stakeholders from all levels.
Real estate agent Darren Robertson of Northern Virginia Home Pro explains that PropTech can be anything that has been created to leverage technology in order to make the overall experience of end-users and agents better. It can encompass anything from blockchain and social media, artificial intelligence, and cloud computing, to machine or deep learning. Here are some of the technology trends in the real estate space to watch over the next few years.
AI and machine learning
The increasing adoption of AI, machine learning, and other automation technologies has already caused rapidly increasing transformations of many industries, particularly finance, banking, and now it is positioned to change real estate. Property data is already being used by AI to improve the client experience through predictive personalization technology, but AI can change the real estate game even further over time.
AI and machine learning can provide access to deep tech like sophisticated computer algorithms and enhanced predictive analytics which has the capacity to do things like predict fluctuations in real estate markets. For example, AI can be used to accurately predict which areas will be most beneficial for investors and developers, by optimizing market-level revenue and profitability.
Deep tech and big data
Experts estimate that the entire world will generate more data in 2021 than we have produced since computers were invented. That’s a lot of data, and the real estate industry generates enough of it for the data to be extremely useful. Tech blogger Antoine Bechara sheds light on this and says, “The large volume of structured and unstructured data available in the digital property space can be used in a variety of different ways, especially when it comes to deep tech and the automation of arduous processes within the property sector.”
Virtual and augmented reality
Subversive computer-generated environments such as virtual and augmented reality are rapidly changing how the end-user is viewing and interacting with the digital and the real world. While these technologies have traditionally been primarily linked to industries like gaming and other entertainment spaces, they have become particularly beneficial for the property industry as well. Because the boundaries between real and virtual worlds are fading rapidly, these new digital capabilities allow real estates to use the technology to showcase both existing properties and off-plan developments with simulated tours in AR and VR.
The industry shows no signs of slowing down, as more and more real estate companies and property management firms embrace the idea of PropTech. As new generations of consumers, investors, and realtors opt for smart tech solutions, it will ultimately speed up the process of the entire industry by facilitating faster sales and quicker rentals. In the end, the successful adoption of PropTech will provide value for all over the coming years ahead.