The real estate industry is always a lucrative & rewarding industry. With the advent of technology, the real estate industry has transformed in a way that it was spotted no time before. The industry slowly accustomed to the evolving technologies/ underwent a digital transformation. One such evident example is the blend of real estate as well as technology – PropTech.
According to sources, in 2018, the Proptech industry increased its funds to $18 billion, marking an edge in the market.
Internet of Things (IoT)
IoT can be explained in simple terms as objects and structures being equipped with sensors that can be read & inferred by internet applications that can translate & convert them into accessible digital data. IoT has a vast range of applications like predictive maintenance, enhanced energy, faster decision making, etc.& thus can boost up the PropTech industry as well the everyday life of the individuals.
Any aspect, where technology has a role to play in occupying, managing, organizing, the transaction of a property is a part of PropTech. Here are the top ten trends that are revolutionizing the PropTech industry.
Top 10 Trends that are Revolutionizing the PropTech IndustryAugmented and virtual reality
Augmented reality & virtual reality are the booming technologies that are greatly revolutionizing the real estate industry since it reduces the time, efforts, cost & energy involved in physically traveling to the actual property. A potential buyer/ owner, even thousands of miles away from the actual property/ if a property is about to be constructed, can visually find what it looks like in a completely immersive experience. AR adds nice digital elements & add ons to images while the more indulging VR helps to enhance stakes in marketing the property.
Read More : “PropTech & IoT: Adoption of technology for smart building and smart cities“
This technology finds a greater reach in the European population, especially among the old people, as these IoT implementation & IoT smart homes render utmost comfort, safety without compromising self-determination.
Big Data
All the industries tap into the potential of voluminous data, though of varying technical & statistical complexity, for making better & informed decisions. Real estate is no exception to it & thus, “big data” is also one of the highly sought after technologies in the PropTech sector too. The companies can use it to know about the history of a location of property & property itself, present value, mortgage estimates, ownership costs, forecast of future value, etc. With the evolution of machine learning & similar technologies, a variety of companies offer great support in calculating the right decisions for the need of the hour.
Artificial Intelligence and machine learning
Though the real estate industry is slowly accustomed to the changing technologies, they believed in AI and machine learning completely due to the lucrative benefits these technologies offered – they help in processing the data they collect to be more actionable.
5G
The launch of 5G technology offers new hopes of more powerful transformations. PropTech would also be impacted positively more than ever. Since 5 G technology would offer more bandwidth, many smart devices, as well as sensors, can be linked with the internet. It’s a great advantage to IoT in home automation, IoT solutions, etc. as higher bandwidth would allow the creation of literally wireless workplaces, easier accessibility of IoT structures in smart homes, & also allows more people to telecommute at the same time.
Crowdfunding
Crowdfunding is the method of raising funds for a project/ venture by acquiring it in small amounts from a larger number of individuals. It is a safer game for all – both the investors, as well as the project developers as they benefit equally, can cope with the initial pressure of investing & many more benefits since it thrives on joining forces.
Drones
Usage of drones in the PropTech industry would be adding on another feather to the amusing cap of real estate. Drones can help in visually depicting multi-perspective sight of a property with easy aerial photography, which is budget-friendly too. They offer a real feel of the actual majesty of large residential/ commercial space.
3D printing
3D printing has been helping greatly in producing architectural models and even in the generation of building parts for a very long time. One shall be surprised to know that it is possible now to create entire buildings by 3 D paintings & there are predictions by experts that entire cities can be risen by 3 D printing.
Blockchain
Blockchain, a beautiful blend of currencies & technology, is a revolutionary idea for the real estate industry as middlemen cost is nullified & transaction cost is minimized. Cost-effectiveness and informed decision-making process are the twin benefits of using Blockchain.
10. Building Information Modelling (BIM)
Building information modeling (BIM) is a three-dimensional smart process that uses a multitude of tools, contracts & technologies that is used by engineers, constructional professionals, architects, etc. They plan, generate, organize, and manage the buildings effectively by employing digital representations of all the physical and functional characteristics of the desired property & its surrounding regions with BIM technology.
Conclusion
Technology breaks existing models of business & makes new paths. Moreover, the same holds true for the real estate industry too. PropTech is the vibrant melange of technology and industry. It will go to furthermore heights with revolutionizing technology like the aforementioned.
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