Proptech is one of the top trending topics for everyone. In the real estate market, Proptech has become an innovative technology that significantly impacts it.
Read the blog to know what Proptech is and how it influences the real estate market.
What is Proptech?
Proptech, or property technology, is the set of technology or software that provides significant help in meeting real estate needs. It optimizes how people buy, sell, research, market, and manage a property.
The size of the worldwide real estate market, as estimated by Grand View Research, was USD 3.69 trillion in 2021 and is projected to rise at a compound annual growth rate (CAGR) of 5.2% between 2022 and 2030.
Proptech includes various technologies, including Artificial Intelligence, Machine Learning, Big Data, Blockchain, Augmented Reality, Virtual Reality, IoT, and many more.
Stats and Figures About Proptech in Real Estate Market-
- By the end of 2024, the value of the real estate industry is expected to surge to an astounding $637.7 trillion.
- The size of the worldwide real estate market, as estimated by Grand View Research, was USD 3.69 trillion in 2021 and is projected to rise at a compound annual growth rate (CAGR) of 5.2% between 2022 and 2030.
- Experts predict that the Proptech business will be worth nearly $34 billion in 2026 and an incredible $86.5 billion in 2032, ten years from now.
Roots of PropTech Real Estate
Proptech is formed with three factors. Let’s know them:
- Real Estate Fintech
Real Estate Fintech, which refers to the financial sector, is one of the main topics you must know. It means providing financial services using innovative technologies and apps.
It includes various applications and technologies, such as digital mortgage platforms, blockchain-based real estate transactions, property management software, etc.
- Smart Real Estate
Smart real estate means using advanced and innovative technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), and Machine Learning (ML) to provide a user-friendly experience to real estate owners, tenants, and investors.
- Shared Economy
The term “shared economy” in real estate means people or companies sharing access to real estate holdings. In the modern era, it has gained massive popularity as it allows people to share their properties with others to use.
Shared economy PropTech examples include Airbnb, WeWork, and Clutter.
How Proptech Influences the Real Estate Market?
Proptech has brought numerous innovations to the real estate industry. Property owners, tenants, investors, brokers, letting agents, etc., can take various benefits with Proptech in the real estate industry:
- Enhanced Productivity
Earlier, most real estate transactions were done offline, which was much more time-consuming. However, with real estate Proptech systems, everything is online, simplifying communication between parties to the sale.
Real estate agents can also benefit from using data analytics tools from property technology to manage their portfolios more skillfully and make better decisions about properties.
- Cost Saving
The integration of Proptech can help in saving the cost of the real estate industry. The requirement for manual labor has also decreased with the automation of property management and transaction processing.
- Enhance Customer Experience
With Proptech, the marketing of real estate has changed completely. Now, buyers can explore every detail of the property online.
Moreover, real estate app development companies can create 2D and 3D views of the property beautifully and attract the huge attention of the buyers.
- Improve Transparency and Risk Management
Transparency is essential if a buyer invests in the real estate market. PropTech has made complete data and analytics accessible to investors, which automatically builds their trust and reduces the risk.
Moreover, real estate app development companies can offer up-to-date information on market trends, cash flows, and property performance to provide complete transparency to investors.
- Sustainable and Green Investments
In the modern era, awareness about environmental concerns is a hot topic. PropTech has made sustainable and environmentally friendly real estate investments easier. Investors can optimize resource utilization, minimize carbon footprints, and cut operational expenses with the help of technological solutions like energy management systems, brilliant lighting, and water-saving technologies.
Top Proptech Real Estate App Development Companies-
Let’s know some of the top Proptech real estate app development companies-
Zillow is a US-based online real estate company that provides services to buyers, sellers, and renters.
The best thing about the Zillow app is that it provides its customers with personalized recommendations and gives the property a suitable value. The app is built on innovative technology and algorithms, Artificial Intelligence, and Machine Learning.
Compass is another Proptech real estate company that uses technology to provide buyers, sellers, and renters services. It became the first Proptech company to create mobile apps for estate brokers. With the help of ultimate digital transformation, it provides property listings with virtual tours, a fantastic comprehensive agent network, and a clean, modern user interface design.
Airbnb is another famous Proptech real estate company that provides home-sharing platforms. It allows people to stay in their homes or stay.
The Seattle-based firm provides scheduling for virtual tours and a “find an agent” option, including information on property risk (from flood to wildfire to local drought).
Moreover, the most prominent feature Redfin offers is the focus on customer service experience.
The Future of Proptech-
So, now you know Proptech can disrupt and revolutionize the real estate industry. With the integration of Proptech in the real estate market, buyers and sellers witness various benefits including enhanced efficiency, improved customer experiences, streamlined operations, and remote property management and monitoring. In the coming years, it will influence the real estate market even more.
Contact Mobulous if you want to integrate Proptech into your real estate industry business. We will help you create powerful PropTech solutions for your business.