Technology has become integrated into our everyday lives now more than ever before in history, with no signs of slowing down. Digital innovation is changing markets and economies, reinventing and revolutionizing pretty much any industry. So it’s only a matter of time before the business models for almost all products, services, and processes are disrupted. And the real estate and property industries are certainly no exception. In fact, the digital transformation has already begun when it comes to real estate, benefitting from the profound effects of PropTech and other data-driven technologies.
What Is PropTech?
Short for property technology, PropTech has become a real estate industry buzzword all around the world in recent years. Broadly speaking, PropTech is the application and combination of a number of recent innovative technology solutions within the property industry. The primary goal of PropTech is to optimize and increase the efficiency of buying, owning, renting, managing, and selling properties. While the property industry has generally been a little slower than others to make the transition to digital tech, it’s at the point now where it’s learning the benefits of these innovations.
Advancements in PropTech technologies allow property professionals to gather and interpret a wide variety of useful data, which they can then use to instantly determine real estate value in real-time. While there are already large amounts of data that is being generated within the industry, it can be leveraged even further as the technology pushes the envelope at both micro and macro scales. These digital platforms not only allow direct interaction with market data, but also for easier, faster, and more streamlined transaction experiences, which will have an impact on property sector growth as a whole.
Data warehouses and databases are being used to store immense quantities of constantly growing information that is being gathered on specific preferences of consumers. Both machine learning and artificial intelligence ultimately power these applications by transforming all of the raw data into actionable information to personalize the entire user experience within the real estate industry.
That’s why these technologies are so fundamentally important, as they increase the overall effectiveness of real estate applications by delivering quantifiable and individual data to each end-user. AI tech has opened the door to business intelligence throughout the real estate industry, which companies can now utilize to improve the process of property sales and rentals throughout the entire market.
Thanks to a variety of online virtual reality tools that are increasing momentum and propelling the industry forward, it’s now possible for prospective buyers to view and assess a wide range of properties without even leaving their home or office. VR technology provides the real estate industry with the possibility of extremely detailed and almost realistic virtual reality tours where clients can examine most aspects of a property that’s for sale or for rent, even if the property hasn’t even been built yet.
In the vast majority of cases, buyers will still need to physically look at a property before making their final decision to purchase as virtual tours can’t show everything – but the savings of both time and money for both client and agent will quickly add up. VR property tours will ultimately reduce visiting multiple properties because virtual viewing will allow many to be removed from their potential purchase lists.
PropTech is here to stay
Whilst, there are already a number of opportunities for technology to be utilized within the real estate industry as a whole. It’s a growing field, and as the world becomes more and more comfortable with advances in technology, the possibilities within the real estate industry will continue to expand exponentially. After all, everyone uses the real estate industry, so property technology certainly has the propensity to have an impact on all of our lives in some way in the future.