Originally published at Ascendix Tech's Blog.
Real Estate has always been a stranger in innovation and technology. Nevertheless, the Covid-driven urge for new practices and a number of tech-minded property tech startups, popping up here and there, have started to bridge the decades-long gap between Real Estate and Tech.
Today, let’s have a look at how Proptech has changed the Real Estate industry and what new solutions it has brought.
Proptech Overview 2022: What Companies Say
Before getting into a detailed discussion of the key technology trends in Real Estate, let us outline the up-to-date state of Property tech and what it has already brought to companies worldwide:
- 80 percent of businesses using Property technologies have seen a boost in the quality and efficiency of services and operations, while 70 percent have shown the increase in decision-making and finances.
- The total investments in Proptech are steadily growing, with a staggering $9.7 billion in H1 of 2021 against $8.8 billion in H1 2020, despite the recent decrease in the number of real estate tech startups founded.
- Businesses pour their funds into PropTech innovations because they expect streamlined efficiencies (65%), cost-reduction (47%), and improved decision-making (44%).
- 42% of Statista respondents believe that the Smart Building solutions are the future of Proptech Real Estate.
- Surprisingly, CRE (short for Commercial Real Estate) is slightly behind the curve, as 78 percent of brokers and agents still handle their back-office activities manually.
Proptech Disruption: The New Technology
As you can see, most companies report a positive impact of property technology innovations on their efficiency and, as a result, profitability. Let’s now check what are the key technology trends that contributed to such a shift in the industry.
To get a clear picture of the new technology in property management in 2022, we’ve analyzed a few reports for the Proptech real estate sector made by the world’s thought leaders, like Forbes, KPMG, and JLL. Here are the technologies they single out:
Proptech Big Data Analytics & digitalization of property data sets
Big Data is about collecting and structuring big data sets about all kinds of assents, from residential properties to massive corporate facilities and telecommunications. Having a structured view of all the information, real estate companies and individual Proptech realtors can come up with more accurate pricing, more insightful market research, and better potential risk management.
AI and machine learning for back-office automation
Whereas Big Data algorithms are there to structure your data, AI and machine learning are all about making your data sets more actionable. Whether it be a sequence of personalized e-mails to your clients based on their personal details or advanced search prediction algorithms, AI will help you do the job!
Virtual reality for better home buying experience with no geographic boundaries
Virtual reality is actively entering a rather traditional Real Estate industry as the new intelligent way of showing homes to tenants or augmenting the existing interior with furniture (like in roOomy).
Internet of Things (IoT) for predictive maintenance
IoT, or The Internet of Things, means intelligent ecosystems of devices and sensors that are constantly exchanging information about an asset to track its overall condition and predict defects. Just to illustrate, property owners can monitor a building’s temperature, security, and maintenance from the screen of their mobile devices and computers.
New technologies for sustainable construction
Sustainability is on everybody’s lips today, so our construction, and especially our appliances, need to get smarter every day. There already is a great pool of sustainable technologies taking up the central place in our home, including SmartGrid refrigerators, washing machines, dishwashers, and micro ovens, however, there is still a lot to come!
Chatbots for better customer experience
Developed on top of smart AI algorithms, chatbots play a vital role almost on every website. Chatbots’ core goal is to improve customer satisfaction, but they can also offload piles of manual work and give actionable insights into your customers’ pain points.
Proptech Big Data Analytics & How It Has Changed the Real Estate Industry
Many confess that from the above-mentioned technologies, the one on the top of the industry disruption will be Big Data. Here is the main reason why the world’s key visionary leaders choose Proptech Big Data: as your business grows, your data is inevitably expanding, transforming into Big Data sets. The way you utilize Big Data can become the key standpoint for your success in Real Estate.
We outlined some of the key benefits this new technology can bring to your business:
- Better Analytics (property’s future risks and opportunities based on geography and other variables).
- Precise Property Evaluations (forecasts of property prices in x-year time with more than 90% accuracy).
- Improved Home Prospecting, Marketing, and Sales (target audience refinement through granular market research),
- Data-driven property development (predictions of where it is best to build a new building and what amenities would fit the potential residents)
- Data-driven risk prediction (clear predictive analyses of the risks of investing in certain buildings and projects).
- Automation of back-office processes (digitalization of records and tons of paperwork).
Final Thoughts
Real Estate is stepping into the new era of technology and innovation, and we’re lucky to witness this revolution. More than that, you can commit to the industry-wide technological shift by employing the above-listed solutions, whether it be robust VR for home tours or Big Data for managing tons of records. Give it a try, and maybe you’ll be the next to report a spike in your sales or efficiency.
If you want to get more insights into Proptech, check the whole article on What is Proptech and What It Has Brought to the Real Estate Industry.
If you already have one of these technologies in your Real Estate arsenal, please share your personal experience of how the new prop tech solution transformed your business.
Top comments (1)
The convergence of new property technology and big data is revolutionizing the real estate industry. With advancements in data analytics and artificial intelligence, stakeholders can now make more informed decisions about property investments, pricing strategies, and market trends. For instance, platforms utilizing big data can offer insights into buyer preferences, enabling developers to tailor their offerings accordingly. In the realm of vacation rentals, such as Corfu villas, big data can optimize marketing efforts by identifying target demographics and refining advertising strategies. Ultimately, this integration of technology and data not only enhances operational efficiency but also facilitates more personalized and satisfying experiences for both buyers and renters in the real estate market.