If you are part of the real estate industry, you, no doubt, are becoming more and more acquainted with technologies every day. These technologies represent a positive force –one that will make real estate investing and wealth management even more interesting. In order to become better acquainted with PropTech (short for Property Technology), you first need to define its use in the real estate industry. You may have also heard of RealTech and ConstructTech but they basically are all related to the property industry.
To make the definition clearer, you only need to compare PropTech with FinTech, which represents technologies that simplify financial services for clients. PropTech and FinTech were developed to meet changing business models and customer demands. Therefore, PropTech references companies who use technology to improve services in the property field. These services can range from building homes that are energy-efficient to applying for mortgages.
PropTech investing has taken off in recent years. Here are two charts from CB Insights:
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The real estate field is seeing the wisdom of using PropTech applications. Following are 5 key ways that the technology is changing how things are done in the real estate industry.
#1 – PropTech Apps Can Be Used to Create Bespoke 3D Floor Plans
Consumers who are searching for their dream house can use PropTech apps to review customised floor plans of models. By using the app, a client gets a better idea of the home or apartment he or she wishes to buy or let.
For instance, the Vieweet, formerly Virtual View App, is an augmented property platform that enables users to access floor plans and property models in 3D. In addition, videos are used to highlight real estate, and cloud services are employed to organise and manage rental paperwork.
#2 – PropTech Apps Are Designed for Collaboration in the Rental Market
Today, with the emergence of PropTech, agents, renters, and owners of properties can collaborate more easily.
For example, the Movebubble app represents this type of collaboration. This site, in particular, aims to answer the needs of the renter and streamline the overall rental process. Because, younger people are demanding value-added, basic, cloud-based solutions, PropTech apps have been developed for these reasons.
#3 – PropTech Apps Are Used to Make It Easier to Share a Living Space
Another way PropTech is used in the real estate industry is to make shared living a simpler activity.
One app that is used for this purpose is the acasa app, formerly Splittable. This innovative technology enables users to divide bill payments and track their shared living costs.
#4 – PropTech Apps Can Be Employed So Customers Can Make Better Buying Decisions and Property Choices
The PropTech apps that are featured today also make it easier for investors and buyers to make better-informed buying decisions.
One of the apps used for this purpose is PriceHubble, which allows users to leverage Big Data to make prognostications and valuations. In turn, the user can make better buying decisions. Another, PropTech app, Propmatch, reviews the real estate market using a robo-advisor. The app analyses and assesses locales and properties in the real estate market, and provides advanced information about specific properties.
#5 – PropTech Apps Allow Property Owners to Produce Virtual Property Tours with their Mobile Phones
One of the major PropTech players in Switzerland is Spectando. This key company is proposing a new way for house hunters to review properties. With their PropTech app, property owners are able to produce tours of their house using their mobile.
Start-ups in the PropTech sector offer innovative solutions for greater convenience, efficiency, and a reduction in fees. For example, one organisation in Switzerland, SwissProp Tech, makes it possible for the traditional property market to work with PropTech start-ups to enhance their services.
PropTech apps are indeed exciting technologies in the real estate field. The use of cloud technology not only simplifies the work of property asset managers and investors, it also makes it easier to shop for real property. Whether you are a renter, property owner, investor, mortgagor, mortgagee, estate agent, or broker, PropTech apps streamline and enhance a variety of real estate processes.
InvestaCrowd is a proptech platform for global real estate investors. We help our investor members access private mid-market real estate investment projects, that are always asset-backed, with sensible and strong returns, minimal tax and with relatively short-term investment timeframes.We serve accredited investors, family offices, HNW and selected institutions.
InvestaCrowd prides itself on being real estate experts with deep experience and contacts across the industry and is capable of developing and structuring individual investment mandates for investors seeking specific investment themes in our key markets, through strong relationships and deep network we are able to source private transactions on favourable terms with strong proven operating partners.