Property technology, or proptech, is the technology designed to enhance processes in the property industry. It is an emerging trend that uses new technology to improve the services people rely on to sell, buy, rent, manage or build commercial and residential property. New technologies offer great potential for every aspect of the property market, from virtual reality viewings to drone-assisted construction. According to Andrew Baum, chairman of Property Funds Research and advisor to several real estate organisations including Redevco and CBRE Global Investors, there are three main proptech movements which are now currently influencing the real estate sector.
A smart building is a building that uses automated processes to control the building’s operations including ventilation, heating, air conditioning, security, lighting and other systems. A smart building uses actuator, microchips and sensors, to collect and manage data according to a business’ services and functions. This infrastructure allows operators, facility managers and owners to improve asset performance and reliability, which optimizes how space is used, reduces energy use and reduces the environmental impact of buildings.
According to a report by Jones Lang LaSalle Incorporated, American professional services and investment Management Company specializing in real estate, smart buildings are expected to be the workspace of the future. Deloitte’s HQ is an example of smart building. Equipped with more than 30,000 sensors, the building allows workers to connect to the building through an app. The app helps the employees to find desks, parking spaces or other colleagues.
Real Estate Fintechs
We all know the amazing ways Fintech has revolutionized banking but it definitely hasn’t stopped there. Fintech is also revolutionizing the real estate industry. People interested in real estate investments now have access to innovative startups that can help them find the best real estate investments for their portfolios. Fintech in real estates is a technology-based platforms that facilitates the trading of real estate’s assets. The assets found in these platforms are mainly buildings, shares, funds, debts or equity
Real estate platforms provide information for prospective buyers and sellers to initiate and conclude asset-based transactions. These platforms have also changed the way investors fund their projects. For instance, Sharestates is a crowdfunding platform for real estate investors that empower people to build a real estate on the spot. By setting up a crowdfunding portfolio, the company has helped developers to open up their project to interested investors quickly and at a low cost. Interested investors then purchase Notes or Membership Units depending on what type of share they want in the company.
The shared Economy
A shared Economy is a technology-based approach in real estates that facilitates the use of assets in a shared manner. These assets can be land, buildings, offices, shops, storage and other property types. Building occupiers and owners are becoming alive to the possibility of “sharing”. The sharing economy includes numerous online platforms that enable people to turn unproductive properties into income through an improved management approach.
The above three categorizations are not just relevant to the PropTech professionals. The revolution is likely to impact us all. We will soon be able to buy a house with the click of a button or even use Cryptocurrencies such as bitcoins to make payments.