PROPTECH: WHAT IS IT AND HOW WILL IT TRANSFORM THE REAL ESTATE SECTOR?

The changes in technology during the last two decades have had a great impact on different areas of the economy. Proptech is the result of the technological factor introduced in the real estate sector, with which companies managed to improve their services. If you want to know more about Proptech and its ways of applying it, keep reading!

WHAT IS PROPTECH?

With the inevitable advancement of technology in all sectors of daily life, Proptech came to the real estate market to change the already known methodologies. But what is Proptech ? Technology applied to the property is the short answer. A more precise definition is the use of technology by real estate companies seeking to improve their services.

Proptech came to the market in 2000, and in the following years it advanced more and more strongly thanks to the installation of companies such as Airbnb. This type of company broke the logic established in the market up to now. In Latin America, the use of Proptech has been increasing in recent years through Crowdfunding.

Services like those offered by Airbnb were also very successful on the continent, erasing some old prejudices and teaching the advantage of investing with the application of new technologies.

HOW TO USE IT IN YOUR BUSINESS

When talking about Proptech it is necessary to define the uses to which it refers. This is due to the fact that this tool has an important diversity in its application form since it is useful in different ways for clients and potential investors. Among the changes that it brought with it can be named:

Market platforms: Refers to companies that decided to change course and install their businesses directly through the Internet, including the sale and promotion of their products.

Investment platforms: These are companies that are dedicated to proposing real estate products and collective investment models, such as the aforementioned Crowdfunding.

Peer to Peer: Companies that provide rental and sale services between individuals -Airbnb is an example-.

Big Data: Brings together appraisal and valuation tools, geolocation, and asset analysis. It also includes software dedicated to data management in the real estate sector.

Real estate management: They create specific software for real estate -both virtual reality and specialized tools-. It makes it possible to visit the property miles away from the comfort of home.

Domotics: Refers to smart homes – homes with energy management, security, well-being and communication services.

Blockchain: The application of technology opened the market for exchange through digital currencies -Bitcoin, Ethereum, etc.

CURRENT ADVANTAGES

In general, the possibilities brought by the introduction of technology make Proptech the present and future of the real estate business; The idea of ​​knowing a property and its characteristics in detail in a virtual way is no longer ridiculous, as clients also have the possibility of knowing the characteristics of the area in which they are interested – nearby businesses, services, etc. -.

In addition to these characteristics, Proptech has another series of advantages that affect both clients and real estate agents. For example, the online market guarantees access to information regarding various properties with which users can make a comparison.

On the other hand, real estate crowdfunding platforms facilitate the entry of investments collectively. This tool offers the option of monitoring real estate projects, thus anticipating future unforeseen events, such as the increase in production costs.

The implementation of Blockchain has great projections for the future, and this results in greater security in investments, in addition to the fact that it could improve the application and grant of loans. Increasing transparency in transactions is another advantage that it would bring.

Blue World City uses tech enable technology in Blue World City Sports Valley Block which is first purpose-built tourist city.

TO TAKE INTO ACCOUNT BEFORE STARTING WITH PROPTECH

Before starting to use its methodology, there are a number of factors to take into account in order to optimize the application. It is undeniable that, with a notable incidence of the internet, the speed with which new trends, ideas, or fashions emerge has increased significantly.

For this reason, the changes that arise regarding the innovation of technologies that can be applied in the real estate market deserve constant attention. Also, the way it is used will depend on the type of clients you are targeting. It is necessary to know how they function in the digital age

By Amelia

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