Property Tech: The Future of Real Estate
The process of buying/selling real estate has remain largely unchanged but recently the industry has started to look at new, innovative ways of doing things. It is a large industry which lends itself well to lots of opportunities to remove any unnecessary processes and embracing new methods of working.
The customer base has also changed will millennial accounting for around 45% of new mortgage purchases in the US. This customer base has a preference for technology to solve some of the ongoing problems within the real estate sector.
What is PropTech?
Basically it is the advancement in technology, services and products that are geared towards meeting the needs of the property market. It is an area of significant growth, with funding increasing from US$2 billion in 2014 to around US$12 billion in 2016/17. Since 2012 there have been around 2,000 successful PropTech startups that raised between $25-$40$40 million on average.
What Is Behind the Massive Growth in PropTech?
There are several driving factors:
1. Big data
Big data is digital and traditional information that is stored by a company — t hings like customer information, social media statistics, and website metrics all fall into this category. The aim of all this data is to improve ways of buying/selling and interacting with the customer. The problem with data is that it can be mishandled so PropTech companies need to ensure proper data storage, security and retrieval. This can be outsourced to make sure that PropTech runs efficiently.
2. Augmented Reality (AR) and Virtual Reality (VR)
AR allows for computer-generated imagery and video to be superimposed on real world environments. VR is when an entire world is artificially generated. Both techniques are being utilized by real estate and property developers, with the use of drone technology to produce high quality, accurate data upon which AR imagery can be imposed. Using AR/VR developers through outsourcing is a way that PropTech companies can make a vision into reality, increasing reputation and bottom line.
Blockchain is the way that cryptocurrencies like Bitcoin and others work. The blockchain will create and verify blocks of digital information — for transactions it can confirm details like date, time and amount. Multiple listing services used in the real estate industry are starting to use this technology. Rental companies are starting to allow payment via cryptocurrency, notable ManageGo is on the front line here. Blockchain creation is difficult and challenging and experts need in-depth knowledge of encryption and math. The common, and some would say best, solution is to outsource its development.
4. Internet of Things (IoT)
IoT refers to all the interconnected devices that transmit and share data online. In real estate this has been expressed by the integration of sensors and monitors into infrastructure. Things like bridges, roads and so on can include sensors that can sense and respond to issues such as the need for maintenance and increased efficiency. There are many teams already in existence that can help integrate these and outsourcing is a good way to access the skilled engineers and developers a company needs to get this done.
It seems likely that PropTech will continue to grow and become more and more integrated into our lives. It will be vital that companies work with skilled personnel to develop integrated and efficient PropTech products, and outsourcing gives them the opportunity to stay ahead of the growing technological change in this industry.
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