Proptech is an amalgamation of two words – property and technology. Proptech, being an umbrella term, contains a wealth of information that can be quite overwhelming.
The term was initially criticized as a buzzword, but with the amount of investment that has been poured into proptech-related startups over the years, it is clear that there is great underlying potential.
What Does Proptech Incorporate?
Proptech incorporates everything, from helping you find a home using AI to the latest building techniques that can help you build more sustainable homes.
Property has always been a sector that has been slow to digitize, despite being a high cash inflow industry. This new revolutionization is updating the age-old industry of real estate up to date.
For example, Graana.com, Pakistan’s 1st online real estate marketplace, uses proptech to revamp the real estate market of Pakistan.
For example, if you are looking for houses for rent in F-7, Islamabad, simply visit Graana.com and find your dream house.
Proptech and the Pandemic
The meteoric rise of proptech can be credited to the pandemic. The pandemic fueled significant growth in the use of technology in our daily lives.
Proptech gained recognition ever since the real estate industry realized the need for more intelligent solutions. These new technologies helped in coming up with solutions for several issues such as eliminating paper waste and unnecessary processes.
The pandemic paved the way for energetic startups to launch various solutions to different problems that have been plaguing the real estate industry for years.
How Proptech Helps in Real Estate
Proptech has become an essential part of almost every sector of real estate.
Below are some examples of how it is reshaping the industry.
There are many tools that leverage the power of Artificial Intelligence to help the real estate sector. Many tools nowadays are programmed specifically so you can put your criteria and yield results.
This is especially helpful whilst searching for a home. Some tools can help you screen tenants and automatically suggest rent prices. For example, you can easily explore houses for rent in F-11, Islamabad, all thanks to AI.
Some AIs analyze complex data structures and provide deeper insights, something that was not possible before. This allows investors to get their hands on more refined data and helps decision-makers make more data-driven choices.
This is a concept that has made waves because of its revolutionary impact. 3D printing is essentially a concept where you can print 3-dimensional objects in space with very high levels of precision.
This technology has the power to incorporate many colors, shapes, and materials.
3D printing currently includes high-quality plastic or microfiber film that is molded with heat. This technology is highly scalable and is now poised to take over the construction of houses.
Concept printers that use new technologies are manufacturing houses that can be transported.
One of the most promising technologies for the real estate sector is virtual and augmented reality. This technology promises visualization in any part of the world. It allows designers and architects to work seamlessly on projects, even though they are eons apart.
Virtual reality also saves cost in terms of mockups, as it is easier to use than CAD software. It can also be used by novices with relative ease. This allows a higher influx of ideas and can help a client in visualizing what they’re investing in more clearly.
Virtual Reality tours are also an alternative to traditional open houses, and companies such as Graana.com have already incorporated such technology into their repertoire.
One of the latest revolutionary concepts that is taking over the world is tokenization. It uses blockchain technology and smart contracts to help make real estate more accessible.
Tokenisation allows users to own a part of a property through a digital token on the blockchain. This token can be exchanged and sold depending on its inception.
This advancement has made owning property accessible to more millennials, which means more sales of property houses and more investment opportunities for the middle class to create assets.
Proptech and Its Impact on the Future
Proptech is quickly changing how we interact with our properties and will continue to do so in the future. Technologies will adopt this feature for their enhancement, resulting in better mileage and user experience.
Besides this, proptech is also making its way towards complete integration in our daily lives. Computing power increases proportionally with software compatibility, resulting in improved AI and data analytics.
However, it is important to note that proptech is still being approached with caution by commercial real estate experts. They are not going to dive in headfirst only to invest in a gimmick technology.
Proptech investments are increasing and for good reason. However, proptech and disruptive technologies come with a steep learning curve. This means that, more often than not, adopting a technology necessitates significant buy-in.
A thorough redesign of a core process can be expensive for many businesses. Proptech is here to stay and it will undoubtedly change the world in a few short years. If companies do not want to be left behind, they must adhere to this dynamic industry.