What is PropTech ?

The Importance of PropTech

What is PropTech?

The property technology with short form “PropTech” is reevaluation of the real estate industry through technology-based solutions and innovative business models.

Who is PropTech?

PropTechs are, the companies which develop and implement technology-based solutions for new and existing problems in the real estate industry. They are offering technologically innovative products or new business models for the market. It stands for all the companies that are taking on the real estate industry to make it better, spurred by an ever-changing digital landscape and new consumption patterns.

The Criteria of PropTech

  1. Developing technology-based solutions for new and existing problems
  2. Developing the new business model for reducing bureaucracy between B2B and B2C.
  3. Developing the new service and product for sustainable properties
  4. Developing the new solutions to reducing the energy consumption
  5. Developing the artificial intelligence-based Database for market and place analysing
  6. Innovative solutions for life quality in properties
  7. Innovative solutions to reducing cost of properties

8.Creating transparency with machine learning and artificial intelligence in real   estate market.

There are several ways in which developments in PropTech can benefit the real estate industry. It’s not only a lucrative path for investors, but new tools are helping millions of buyers, sellers and landlords to improve property journeys. So both, companies and users can profit from Proptech. But what are the tangible advantages? Let’s find out.

  1. Increased innovation in the real estate market

We’ve heard about the speed at which PropTech is making waves in the industry. But there is much more: Big data can supply information and knowledge necessary to make informed decision, which makes it more practical to buy and sell more properties. Sensors, big data and data analytics enable the real estate market to innovate more. That’s also the main reason why investments in PropTech companies increased in recent years.

  1. More transparency

New technologies such as big data or blockchains particularly improve transparency. Various tools can help people to track their property transactions at the touch of a button.  Since each party involved will have visibility of every transaction, greater transparency is possible. No surprise that the Global Real Estate Transparency Index was established. It has become the leading industry benchmark for assessing market transparency and continues to guide the sector towards higher standards.

3. Enhanced promotion

Technology can assist with many problems faced by property managers such as sourcing tenants or the promotion of a property. From floorplans and galleries to online tours: The expansion of 3D virtual tools enables real-estate agents to promote an existing property or upcoming development.

  1. Improved occupancy

But also, the administrative processes in your property can be digitized. There are a lot of rental platforms or apps in which tenants and landlords can find each other easily and reduce vacancies. And of course, a digital access management solution also helps you to allocate individual rooms faster and more flexibly. The space capacities can therefore be utilized more effectively.

  1. Better communication

Many PropTech companies focus on setting up messaging services to heighten communication between landlords and tenants. A lot of these platforms provide access to documents or forms for claim reporting. So property managers can leave relevant information about the property on a whiteboard, while owners can respond directly to tenants requests. Less misunderstandings and faster answers are the result. Here you can find some useful apps for property management.

  1. Higher value

All these scenarios can ultimately increase the value of a real estate, which in turn will result in higher rental returns. Just think of it. Buildings with PropTech will probably be associated with quality and seen as more valuable than buildings that is not provided with PropTech.

Different Proptech applications can have a huge impact on real estate. The strength lies in the combinations of them, which offers additional value.  Naturally there are more than six benefits of PropTech.

PropTech (property technology) is the use of information technology (IT) to help individuals and companies research, buy, sell and manage real estate. Similar to the way FinTech focuses on the use of technology in finance, PropTech uses digital innovation to address the needs of the property industry.

PropTech is designed to streamline and connect processes for participants in all stages of the real estate market, including buyers, sellers, brokers, lenders and landlords.

Proptech is the acronym used to describe any technology for the real estate space. This can span software, hardware, materials or manufacturing.

The Categories of PropTech