There’s no denying that technology is everywhere! In the last few decades, advancements in tech have grown leaps and bounds – and entered facets of life some of us never expected. From smartphones and tablets to driveable cars and even robot doctors, tech is both amazing and a little alarming! Without it, millions of people and professions would be at a disadvantage. To stay up with the times (or ahead of the game), businesses and organizations across the globe are adopting technology in their everyday operations. And the world of real estate is no different.
Introducing: PropTech. PropTech (or property technology) applies information technology and platform economics to the real estate market. But what exactly does that mean and how is it changing the face of real estate?
Let’s take a look!
The Internet of Things
Let’s start at the beginning. The Internet connects people and places across the globe with the touch of a button (or the click of a mouse). It’s focused on the user experience. It’s about simplifying your life and streamlining whatever process or job you’re performing. This includes things like hosting viewings to signing contracts and networking. The Internet increases efficiency and reduces errors and risk. Any agent knows that the real estate market is constantly changing and evolving. Staying on top of trends, the economy, and market values is crucial for success. The internet puts things at your fingertips, allowing you to search for and compare insurance companies, letting agents, and property managers using sites like Rentround. Agents can advertise properties, schedule maintenance, and even monitor their properties using wireless technology and other convenient tech gadgets.
Virtual and Augmented Reality
VR is about more than just video games. This popular PropTech option is new to the real estate world but is quickly evolving. The main use of both virtual and augmented reality is to make viewings, showings, and closings easy and convenient, regardless of your location. In addition to showing existing properties, VR and augmented reality make it possible for investors to view and visualize property concepts and properties that are in the development phase. But viewing properties isn’t the only perk. AR also gives your clients a more interaction experience thanks to user-friendly apps that help bring their vision to life (and create visions they didn’t even know they had).
Millions of people are going green in all aspects of life. This trend is now making its way into the real estate market, but not in the way you might expect. One thing to note is that Greentech has entered the picture on the heels of the IoT. How so? The world is more hyper-aware of climate change and sustainable than ever before. Another trend is the millennial generation becoming first-time homeowners. If there’s one thing the younger generation loves (and knows about), it’s tech. This phenomenon is causing a surge in demand for SMART and energy-efficient homes. Solar energy is another popular option that promotes sustainability and reduces your carbon footprint. For both “green” and young homeowners, many of these features are a must-have.
You’ve likely seen these sneaky cameras sky-high at least once or twice. Drones are useful for a lot more than just fun and games or spying on your neighbors (we don’t suggest that). Countless businesses use drones to go where they can’t go – literally. Just ask Amazon who recently adopted a drone-delivery system! In terms of real estate, drones help agents capture images like never before. Not only can you now take dynamic 360-degree photos and aerial shots, but you can truly capture the size and views of a breathtaking property. But the exterior of the home isn’t the only angle drones help you touch on. Combined with VR, you can now create visual mapping of the interior of a space as well, delivering a virtual tour like no other.
At the end of the day, real estate and property investments are about making a profit. The introduction of blockchain takes the middleman out of the buying process. Now, you can close deals and receive your commission faster than ever before. Not only is blockchain fast and efficient but it’s also one of the most secure ways of doing business. There are lots of moving parts and players when it comes to closing a deal. Blockchain allows multiple people to view and interact with the transaction process along the way. One of the most popular and recent blockchain rollouts is Facebook Libra. Now, agents, buyers, and other important players can securely exchange money using one of the most widely-used platforms in the world.
Data isn’t a new concept in the world of real estate, but the way it’s being used is. Technology is changing the way that data is gathered, structured, and understood in real estate. Investors and managers can now use this information to operate their properties more efficiently. Not only can larger companies extract data but they can also make predictions about future trends. You now have access to neighborhood evaluations, mortgage rates, and property history. With in-depth insight you can now make more informed and confident decisions to help expand your business and client base.
If you’ve ever seen a creation from a CAD printer you know that they’re a little bizarre but a lot cool! 3D printing is popular in the automotive industry, as well as educational establishments, the arts, and construction. Since real estate, letting properties & property management combine a lot of these elements, it’s no surprise that 3D printing is making its way into the real estate world. Think large-scale development. In 2014, a Chinese company successfully printed 10 homes with each costing just over $4,000! This is an unbelievable accomplishment when it comes to offering affordable homes to low-income families. Certain developers are striving to create entire neighborhoods using 3D printing. Stay-tuned to see how this PropTech trend unfolds in the future!
Technology and Real Estate Now Go Hand-In-Hand
If you’re in the real estate market you already know that it’s constantly changing and evolving. The introduction of PropTech shouldn’t surprise you. Technology is virtually everywhere. Real estate and property management in itself incorporates several different industries including visual design, customer service, sales, and finances, just to name a few. Now that tech is present in all of these niches, it’s presence in real estate has never been more clear or necessary. Stay up to date on PropTech trends and revelations to guarantee you never miss a sale or an opportunity.