The proptech industry witnessed growth and innovation last year, promising a great future going forward in real estate technology. Proptech, which is short for property technology, involves creating digital solutions for the real estate transaction process, from browsing and buying to building.
Technological advancements such as cybersecurity, construction technology, big data, automation, and artificial intelligence are the main disruptors, driving efficiency and introducing new products and services. This industry, run by both startups and established companies, is poised for further growth, drawing attention to expert predictions for proptech in 2024 below.
Our Experts:
- Jeremy Gall, CEO & Founder, Breezeway
- Andrew Lloyd, CEO, Search Acumen
- Maria Hudson, CMO, Zutec
- Mike Branam, Director of Multifamily, PointCentral
- Rob Norton, UK Director, PlanRadar
- Marcus Rader, CEO and Co-Founder, Hostaway
- Fredrik Halmøy Wisløff, CEO and Co-founder, Findable
- James Massey, Managing Director – FM, MRI Software
Jeremy Gall, CEO & Founder, Breezeway
“The hospitality experience is set to become hyper-personalised to each guest. Imagine walking into a short-term rental and it already knows just how you like the lights, the temperature, and even what music you’re into.
“We’re moving toward a future where technology not only makes things quicker and easier, but also personalises the guest experience in ways we’ve only dreamed of. Picture a world where searching for a rental allows you to filter properties by much more granular location and bed configuration data, access for multi-generational travel, the size of a hot tub, or even the type of stove — details that cater to the unique needs of every traveller, making every stay feel as if it was designed just for them.
“Behind the scenes, this will be made possible by the automated pairing of property and guest data. Travellers are soon going to get the distinct feeling that the places they book truly want to know about them, because these managers and hosts are all going to be trying to create a very bespoke experience, knowing the more they can execute on this type of experience, the better their reviews, greater loyalty and repeat visits.”
Andrew Lloyd, CEO, Search Acumen
“The genie is out of the bottle. As a technology business, we’ve had AI integrated into our digital legal and property data platforms for almost a decade, but 2023 was the first time where the industry and the public collectively grasped the seismic potential of this technology.
“That’s largely because applications like ChatGPT and Bard have risen to such prominence, making AI truly accessible for the first time. Progressive firms have already started integrating AI and 2023 will go down as AI’s break-out moment, but 2024 is when firms will really start grappling with integrating AI en-masse.
“Now the potential is widely understood, and firms know that failing to grasp the AI opportunity will put them at a significant disadvantage, integration will happen incredibly quickly. By the end of next year, we’ll already see AI more as a baseline standard for most business operations than an experimental technology for special projects.
“Where 2023 saw the emergence of AI, 2024 will be the year that it starts to truly define success in the legal and property sectors and take a lead role in reshaping market activity.”
“While industry and government has rightly been focussed on big issues around AI’s potential and how we can utilise the technology safely, I do see a challenge coming down the track pretty quickly around digital skills. The technology is developing at light speed and fully leveraging its potential is dependent on re-gearing our economy and our society to take advantage.
“But, as is usually the case with innovation, it takes a lot longer for these socio-economic impacts to be understood and planned for. One of the biggest areas where we will notice this lag is in skills. The technology will outpace our ability to keep up in terms of a digitally up-skilled labour force, and that could well cause problems next year for real estate companies and law firms as they start to think about scaling their use of AI.
“Short term there is going to be a really important role to play for third-party technology companies helping clients navigate the transition. However, with the proptech and legal tech markets expanding rapidly and new solutions being launched on an almost weekly basis, it’s vital that firms are savvy about the technology partners they choose.
“While I should probably be telling the property and legal sectors to simply choose Search Acumen, I’d actually advise companies to run more robust tender processes to ensure that they are able to find suppliers that can meet their objectives, have an established track record and offer value for money in challenging economic times.
“In the medium to long term, real estate and legal businesses really have to start prioritising the skills they are going to need for the coming decades, and I expect we’ll see the industry increasingly look outside of its usual talent pools to bring more people with technology and innovation expertise into senior leadership roles.”
For any questions, comments or features, please contact us directly.
Maria Hudson, CMO, Zutec
“The 1st of April 2024 will see the transition phases of the Building Safety Act (BSA) end, with its full legislative and legal weight coming into force.
“Whilst it will go a long way to addressing many longstanding issues around fire safety and building quality, many developers and asset owners remain unsure about how to comply with key aspects of the regulation.
“To help provide more clarity, and prepare for the new regulatory landscape, best-in-class data management will be essential as the industry seeks to define a baseline building safety case, a key objective over the next 12 months as we continue to work towards de-risking the built environment.
“That’s only the start, beyond BSA other incoming regulations, particularly around sustainability, will act as a catalyst for everyone in the supply chain to further digitise processes and get their whole-life building information in order.
“The good news is it’s never been easier to do so, and they can take advantage of an array of powerful technologies and solutions in the market to do this effectively and efficiently.
“Not only will this ensure holistic compliance, but having a complete data set to analyse will help property businesses make more informed decisions, leading to better outcomes all-round.”
Mike Branam, Director of Multifamily, PointCentral
“AI is already being leveraged with prospective tenants to supply them with on-demand, self-guided tours but the opportunities for the tech are endless.
“In 2024, AI will be used for self-serve maintenance by diagnosing simple problems and offering guidance to residents to prevent unnecessary callouts.
“It will also be used to boost resident engagement and will automate the entire multifamily leasing cycle.
“This will include post-lease communications, where AI systems will look for red flags concerning resident satisfaction to combat negative reviews.
“EV (Electrical Vehicle) strategies become increasingly important this year. Across the country, states are mandating a shift to electric vehicles and, as existing multifamily assets haven’t been built with the infrastructure to accommodate a charging station, there will be an increase in demand for charging facilities.
“This opens up opportunities to monetise charging points for existing residents, who will most likely now pay a monthly fee for a space to charge their vehicles.
“It also presents the potential for residents to rent out their charging points during downhours when they are at work, to other electrical vehicle owners in the community. Both of these EV schemes provide financial incentives for property managers and residents.
“Smart property technology will continue to develop throughout 2024 from being solely focused on ‘in unit’ tech that includes self-guided tours and intercoms, to wider smart communities that incorporate systems such as access and perimeter security.
“A fragmented and disparate approach to multifamily technology will start to fade away as a more unified, holistic approach to smart property tech in the multifamily sector emerges.”
Rob Norton, UK Director, PlanRadar
“As we’ve seen in 2023, fire safety will continue to dominate building standards. Future legislation around the issue is only set to increase, and businesses will need to be laser-focused on managing safety checks and improving record keeping in line with new more stringent laws.
“Building accuracy will also be a touch point within 2024 as a means to reduce rework and material waste, not only to improve bottom lines but also to support the industry’s green ambitions. Digital tools and solutions will continue to play a vital role in building processes here, allowing contractors to build with greater precision while reducing the number of errors during the final build.
“The much-discussed ‘Golden Thread’ will also have its moment. We’re seeing a drive for industry best practices from our customers who want to facilitate a clear understanding of their buildings and assets against the backdrop of new building safety regulations.
“Again, digital platforms will be central to these plans, allowing them greater control and visibility across projects. However, Responsible Persons must be given more precise timeframes regarding when Golden Thread information should be shared with the Building Safety Regulator if we’re serious about improving building safety across the board.”
Marcus Rader, CEO and Co-Founder, Hostaway
“The consolidation in proptech in the lodging and short-term rental sectors over 2016-2023 is mostly done. There will be a limited amount of M&A activity in 2024 when it comes to smaller businesses with less than 100 employees.
“Few of these smaller proptech companies are fast-growing or profitable. However, as the industry is maturing there is a lot of room and opportunity for consolidation when it comes to the bigger companies, especially if they’re profitable.”
For any questions, comments or features, please contact us directly.
Fredrik Halmøy Wisløff, CEO and Co-founder, Findable
“I strongly believe that we have only seen the start of AI’s impact on the PropTech sector. Forward, I think we’re going to see a lot more of the following:
“Predictive Maintenance: AI algorithms will analyse historical data and real-time inputs to predict when facilities and assets need maintenance, reducing downtime and extending asset life.
“Efficiency Optimsation: Automated systems will streamline documentation processes, improving operational efficiency and reducing manual errors in facility management.
“Energy Management: AI-driven tools will monitor and control energy usage in real estate assets, leading to cost savings and sustainability.
“Portfolio Analysis: AI will provide insight greater depth into asset performance, tenant behaviour, and market trends, aiding strategic decision-making in asset management.
“Tenant Experience: Enhanced documentation management will enable a smoother, more responsive service for tenants, which will improve satisfaction and retention.
“Compliance and Risk Management: AI will automate compliance tracking and risk assessment, ensuring that assets adhere to regulations and standards more efficiently.
“Sustainability Certifications: AI-driven systems will play a crucial role in assessing and certifying the sustainability aspects of properties, ensuring good financial deals for those who have their documentation in order.
“For us at Findable, these AI-driven advancements not only automate and refine documentation management but also contribute to smarter, more sustainable facility and asset management practices.”
James Massey, Managing Director – FM, MRI Software
“I expect facilities management (FM) to be the driver of innovation in propetch over the next 12 months with an accelerated consolidation of FM data including footfall analysis, IoT sensors, and energy monitoring to enhance service delivery.
“Building on the strides made in 2023, I foresee AI taking off in FM operations. The efficiency of AI applications depends on the quality of the data available. In 2024, FM and property management teams will need to prioritise the organisation, accuracy, consistency, and cleanliness of their databases to harness the full potential of AI.
“This year will also witness a strategic implementation of AI in areas such as energy management, footfall optimisation, and intelligent chatbots that promise to enhance tenant interactions and issue resolution.
“Finally, environmental sustainability is also emerging as a dominant trend in the coming year, with a growing number of organisations seeing energy consumption as a top business risk and sustainability as a key priority.
“FM teams will need to collaborate closely with property managers and adopt AI-driven energy management tools to not only measure and monitor energy usage but also provide actionable insights to identify and address inefficiencies.”
For any questions, comments or features, please contact us directly.
