From the development of the personal computer to cell phones, to the rise of app culture; technology continues to shape our culture. Similarly, the entrance of tech into the industry is shaping the business. When it comes to real estate business and finance, property technology is the thing to watch. Property technology, or proptech, serves to streamline the entire process of real estate business from agents to buyers to financiers to developers.
The property technology market is a collective bounty of intelligent, prosperous companies linked together by the type of technologies they’re working with. From Igluu to Payfully’s commission advances, every great proptech company started with an innovative idea. These companies are solving one universal problem, which is how to use technology to streamline real estate business. Blockchain, virtual reality, interfaces, artificial intelligence, and a new focus are the top 5 property technologies gaining momentum in the coming months.
Blockchain for real estate is like a detailed public account of time-stamped transaction data. Professionals have the ability to see what each party is doing in the process of a real estate transaction. Some real estate blockchain startups are already working to tokenize assets. Thus, helping to enhance the liquidity in the market. Blockchain lifts the curtain for a fully transparent transaction. Thus removing the need for a third party in the buying and selling of a property.
Real estate agents are finding virtual reality to be an exceptionally helpful tool. Virtual reality, or VR, proptech is used to create three-dimensional viewings of a property. For a buyer or real estate investor who doesn’t have the time see the physical property, virtual reality proptech is essential.
The first proptech to hit the real estate market was software like Client Relationship Management (CRM), focused accounting and ancillary software, etc. This year, proptech will begin to focus on combining multiple features into one easy-to-use software. With this said, we may see mergers, partnerships or complete buyouts to better serve agents.
Real estate is one of the most robust industries in the world. As a result, this translates into mountains of data regarding buyers, sales, properties, and more. Unfortunately, real estate players don’t have the time to aggregate and make sense of big data. That is why Artificial Intelligence (AI) companies are adapting algorithms to fit within the proptech market. AI is set to create a more efficient market for all real estate professionals.
Tenant Focused Apps
While much of the proptech focus is on the professionals, the app focus may be moving more toward tenants. Moreover, professionals are investing in apps that can help tenants get into the building, request repairs, and more. All the while, making managing the property much easier. That is why a push for tenant apps remains at the forefront for proptech apps this year.
These are the five focuses that Payfully believes will shape proptech in the coming future. Blockchain, virtual reality, centralized interfaces, artificial intelligence, and tenant focus will be used to inevitably transform the real estate industry.