Today, the use of technology has become an integral part of every business. Working hard is no longer enough to make a business successful. The correct use of technology is what makes a business thrive.
To be ahead in this digital era, an industry, irrespective of its size, needs to start leveraging tech-enabled innovations.
Some industries, like real estate, had a hard time accepting this change but the results left them astonished. According to a new report by Grand View Research, the global real estate market is expected to generate a revenue of USD 4,263.7 billion by 2025, thanks to the investments in the latest technologies and other factors such as the increasing demand for housing real estate space and rapid urbanization through migration in search of better amenities.
According to a report by Statista, 59% of respondents stated that they believed technology investments have provided the most significant positive impact on financing and investment processes.
Now, let’s read more about the use of technology in real estate.
What is Proptech?
Like Insurtech and Fintech, Proptech follows the same pattern. All these terms represent the adoption of technology in the respective fields. Similarly “Proptech” stands for ‘Property’ and ‘Technology’ and encompasses the various solutions that are used in the growth of commercial real estate software.
Proptech uses technologies like Artificial Intelligence, Internet of Things (IoT), Big Data, Machine Learning (ML), Drones, and 3D printing, among others to optimize the way people research, rent, buy, sell, and manage a property.
Proptech aims to make the real estate industry better, more efficient, and easier to navigate for all parties involved.
According to a survey of commercial real estate by Statista, 31 percent of commercial real estate investors plan to invest in Proptech companies, and 26 percent plan to partner with Proptech companies to cash in on this innovative new class of technology.
Top trends and innovative uses of Proptech in the real estate industry
3D virtual property tour
With the growing use of technology and very little time on people’s hands, the idea of providing a 3D virtual tour to buyers seems to be gaining popularity.
Real estate agents are making the best use of this feature by providing virtual tours to buyers in the comfort of their homes. This Proptech with the help of Machine Learning (ML), allows the buyer to examine the property state, interior details, and furniture through the virtual tour.
This helps eliminate the expense of visiting multiple properties and saves time by making the buyers’ list of potential purchases through virtual viewing that enables the buyers to only visit the properties that they choose to see before making the final decision.
HomesInfra is an example of a real estate app that offers a 3D virtual property tour.
Real estate apps
Now, a buyer is only a few clicks away from renting or buying a property. Gone are the days when buyers used to arrange meetings with real estate agents and had to go out to check the properties.
There are numerous applications available on the app store that allow buyers to search for properties and sellers to upload their properties for renting or selling purposes, such as Trulia, Realtor, and Xome Auctions.
These apps can also be used to compare the value of homes in the buyers’ chosen area, allowing them to make more informed decisions regarding selling prices. Furthermore, it can help buyers to find the property in their preferred locations and be in touch with a real estate agent to help facilitate the deal.
Big data
Technologies like Big Data helped the real estate industry to create websites like Redfin and Zillow that can compile and collect data on buying and selling trends in a specific area, traffic, and demographic information. This helps analyze and collate data to offer insights on pricing, home-value trends, and potential value in certain neighborhoods to the buyers.
Property owners can use Big Data to gather information about different kinds of building systems such as electrical, HVAC, utilities, fire/life safety, telecommunications, among others, to keep up with the property maintenance.
Smart homes
Smart homes are the new normal. According to Statista, the number of smart homes is forecasted to grow and surpass the 350 million mark by 2023. Smart speakers are the most widely-known market segment, of which around 320 million were in use in 2020. The size of the installed base is set to double by 2024.
Smart homes are the new way of increasing property values and they attract a new generation of home buyers. These homes use technologies like Internet of Things to connect devices and appliances that perform actions, tasks, and automated routines for homeowners which save money, time, and energy.
Wrapping up
For Proptech, it’s just the beginning. Within a few more years, there will be numerous opportunities for technology to be used in the real estate industry. If you are thinking about investing in a Proptech startup then it is best to start at the earliest as the Proptech market is growing at a very fast pace.
Looking for a software development company to partner with?
Jellyfish Technologies is one of the leading Proptech software development companies. Jellyfish Technologies provides Proptech application outsourcing services, Proptech software development services, and Proptech application developers for hire.
If you are a Proptech startup company, JFT can help you with mobile application development, web application development, API integration, Blockchain implementation, quality assurance, or any other custom requirement.
