Upon hearing “property technology trends”, you are not so far off if you think of the talking teapot and candlestick from Disney’s Beauty and the Beast. Except their voices and characters are operated by artificial intelligence. The real estate industry has long been known as a slow-moving giant, but with the advent of proptech, the industry is getting a much-needed tech upgrade. Join us as we understand the top proptech technology trends in 2023.
Proptech, or property technology, refers to the series of technological infrastructures used to automate the real estate industry. Proptech is a relatively new industry that has been gaining momentum in recent years. The industry is expected to reach $20 billion by 2023, with a compound annual growth rate of 25.7%. This growth is driven by the need for new and innovative solutions to the problems facing the real estate industry. Proptech is helping companies in the real estate sector to manage their properties more efficiently, develop new business models, and offer better services to tenants and investors.
One of the reasons why proptech is so important for the real estate industry is that it helps to bridge the gap between the physical and digital worlds. For example, these days, who doesn’t consult the internet to arrange viewings? Proptech platforms allow real estate companies to offer virtual tours of properties, manage their properties online, and even use drones to survey their properties. This is helping to make the real estate industry more accessible, transparent, and efficient.
Almost every major city, characterized by its “urban” nature, has a housing crisis. Consider Amsterdam: an influx of students, immigrants, and city folk. When everyone wants an apartment in the same place, a crisis emerges. Even though individuals cannot reside virtually (yet), proptech solves problems, and it’s here to stay. Read on for the patterns that the year 2023 brings into proptech.
Big data is one of the most significant trends in the tech industry, and it is no different in the real estate industry. With the help of big data analytics, real estate companies can better understand their customers, improve their services, and make more informed decisions. Big data can be used to analyze everything from property prices to consumer behavior, making it an essential tool for the real estate industry.
One of the most significant benefits of big data for the real estate industry is that it can help companies to identify new opportunities and trends in the market. By analyzing data from different sources, real estate companies can identify areas where demand is high and adjust their strategies accordingly. This can lead to better investment decisions, higher profits, and a more competitive position in the market.
Artificial intelligence (AI) and machine learning (ML) are two of the most exciting and transformative technologies in the tech industry. These technologies are already being used in the real estate industry to automate tasks, improve customer service, and reduce costs. For example, AI-powered chatbots can be used to answer customer queries, while machine learning algorithms can be used to analyze large datasets. Landbot is an intuitive chatbot platform used by many real estate firms to build their in-house expert.
One of the most significant benefits of AI and ML for the real estate industry is that they can help companies to predict market trends and make more informed decisions. By analyzing data from different sources, AI and ML algorithms can identify patterns and trends that are not immediately apparent to humans. This can help real estate companies to make better investment decisions and stay ahead of the competition.
Picture Doctor Strange’s role in Spiderman: traversing universes in the blink of an eye and projecting visuals between his palms. Augmented reality (AR) brings a version of this immersive visualization into the real estate industry. Essentially, AR is a technology that overlays digital information onto the physical world. In the real estate industry, it can offer virtual tours of properties, allowing potential buyers to explore properties without having to physically visit them. This can save time and money for both buyers and sellers, making the buying process more efficient.
Another benefit of AR for the real estate industry is that it can help to reduce the risk of fraud. By offering virtual tours of properties, real estate companies can ensure that buyers see exactly what they are paying for. This can help to build trust between buyers and sellers and make the buying process more transparent.
The Internet of Things (IoT) refers to the network of devices connected to the internet that can communicate with each other. In the real estate industry, IoT devices can be used to monitor properties, automate tasks, and improve energy efficiency. For example, IoT sensors can be used to monitor the temperature and humidity of a property, while smart thermostats can adjust the temperature automatically. Or, the number of people entering and exiting a space can be tracked with "people counting" sensors. An IoT-based app can quickly get a notification if the number of people exceeds the limit set according to the area.
One of the most significant benefits of IoT for the real estate industry is that it can help to reduce costs and improve efficiency. Real estate companies can save time and money by automating tasks and monitoring properties, allowing them to focus on more important tasks. IoT can also improve the tenant experience by offering smart home features and other amenities.
As the fifth-generation cellular network, 5G brings unprecedented power and capabilities, setting the scene for a hyper-connected future. In the past, we relied on 3G and 4G networks for our internet-based tasks, but the demands of today's interconnected world exceed their bandwidth caps. Recognizing this need, telecommunications providers came together to create a new network that would meet the growing requirements of our digital era.
For real estate professionals, 5G will revolutionize internet connectivity. In the past, wireless connections were often deprioritized due to the challenges posed by building materials such as concrete and steel. However, 5G overcomes these obstacles, ensuring robust connectivity throughout entire buildings. The impact of 5G extends to various sectors within the real estate industry. Residents, property managers, and leasing agents will all experience the benefits of 5G in unique ways, leveraging its power to enhance communication.
Just as we need a piece of land to build a house, real estate firms need a place to house their information technology requirements. This "somewhere" is known as a server.With the Infrastructure as a Service (IaaS) model, companies can forego physical servers and instead rent server space from IaaS service providers. These providers handle requests for additional server space, ensuring scalability and future-proofing for organizations. Amazon Web Services, DigitalOcean, Linode, and RackSpace are well-known examples of IaaS.
The Platform as a Service (PaaS) model, on the other hand, is akin to laying a solid foundation for your construction project. Simply put, a “platform” is an environment for software developers to build applications. Developers pay a fee to PaaS providers to maintain access to this environment, ensuring its optimal performance. The Proptech Industry has numerous PaaS examples, such as NOON Capital, Atlant, Enertiv, and Foyr. In essence, cloud computing lays the groundwork for virtual property tours, management solutions, and enhanced property listings.
Drones are becoming increasingly popular in the real estate industry, offering a new way to survey properties and gather data. Drones can be used to create 3D models of properties, survey land, and even inspect roofs and other hard-to-reach areas. This can help to save time and money for real estate companies and make the buying process more transparent.
One of the most significant benefits of drones for the real estate industry is that they can help to improve safety. By using drones to inspect properties, real estate companies can identify potential hazards and take steps to mitigate them. This can help to reduce the risk of accidents and improve the overall safety of properties. The DJI Mini 2 Drone is a popular choice for real estate firms due to its lightweight and long flight range.
Green building technologies are taking the real estate world by storm and transforming the way we construct and inhabit buildings. As a rising proptech trend, these innovative solutions create environmentally friendly spaces that minimize energy consumption and carbon footprint.
Imagine a world where buildings generate their own power, efficiently manage resources, and provide healthy environments for occupants. With advancements in renewable energy systems, smart grid integration, and energy-efficient materials, this future is within reach. Green building technologies leverage green infrastructure such as solar panels, advanced insulation, rainwater harvesting, and smart thermostats to create energy-efficient structures. These technologies not only reduce utility costs but also contribute to a greener planet. They also improve indoor air quality, optimize water usage, and promote sustainable practices like recycling and waste reduction. By embracing green building technologies, property owners can attract environmentally conscious tenants and future-proof their investments.
You might have heard about blockchain in the context of cryptocurrencies, but its potential extends far beyond that. At the core, blockchains help track ownership— whether it’s an NFT, or a house. The novel application of blockchain in real estate completely transforms property transactions and ownership records.
No more scavenging for papers when transactions are secure, transparent, and lightning-fast. Blockchain, with its decentralized and tamper-proof nature, brings exactly that to the table. With the use of smart contracts and distributed ledger technology, blockchain eliminates the need for intermediaries and reduces the risk of fraud his creates trust and efficiency in the market, attracting buyers and sellers. American-based companies such as Closinglock and ShelterZoom use blockchain networks to solve the problem of wire fraud for countless agents.
While we are on the topic of blockchain technology, tokenization is a process by which real estate assets may serve the purpose of stocks, enabled by distributed ledger technology. Imagine being able to own a fraction of a prestigious property, without the barriers of traditional real estate investments. Tokenization makes it possible to digitize real estate assets and issue tokens that represent ownership shares. It's like breaking down properties into bite-sized pieces, allowing more investors to participate and diversify their portfolios.
Aside from providing liquidity and accessibility, tokenization of properties helps keep track of complex ownership histories, which would be bungled very easily in on-paper records. Companies such as the New York-based Republic, offer carefully vetted global real estate options to their users. The rigorous vetting process ensures that investors have complete confidence in making real estate investments that align with their principal sum and risk tolerance.
Geolocation technology is like a magic wand that helps property marketers reach their target audience with pinpoint accuracy. By harvesting GPS and location data, agents can deliver tailored marketing messages to potential buyers or tenants based on their specific location, preferences, and needs. If you were born into a long line of generational wealth, or bet on racehorses, you might receive advertizements for a summer house by Lake Como— instead of budget-friendly apartments in the Amsterdam ring.
This technology identifies users’ internet protocol address, assigned by an internet service provider to each computer connected to the internet. Thus, property-seekers may receive notifications about available spaces in their desired neighborhoods. Real Geeks is a real estate marketing agency based in Texas, which helps agents identify their potential consumers’ behaviour and locale. While geolocation tech renders property searches more convenient, our privacy is compromised.
Robotic Process Automation or RPA is a technology adapted for the corporate world. It entails the automation of repetitive processes such as data entry, invoice processing, and property management workflows. Intelligent bots free up time for real estate professionals to connect with clients and close deals instead of slogging away on spreadsheets.
Redirect, a leading provider of real estate technology consultation, suggests firms begin automation with accounting, corporate accounts receivable, and month-end processing. RPA swoops in with its efficiency and accuracy, reducing human error and increasing productivity. By harnessing this technology, real estate agents can streamline operations, improve client experiences, and drive business growth. It's like having a digital partner that works tirelessly behind the scenes, ensuring efficiency and success.
With 3D printing, architects and designers can transform their visions into tangible prototypes with astonishing precision. Want to visualize the layout of a new office space or test the functionality of a futuristic building design? 3D printing makes it all possible. But it doesn't stop there. Now, actual building components, from walls to intricate architectural details, are built using a 3D printer. In fact, in 2021, Joris Laarman designed the world’s first 3D-printed bridge installed on Oudezijds Voorburgwal in Amsterdam, executed by MX3D, a robotics solutions lab.
This accelerates construction processes, reduces waste, and allows for greater customization. The future is here, where blueprints transcend paper and become three-dimensional realities.
The dynamic market of property technology is expected to reach a valuation of $86.5 billion around the year 2032: just nine years from now. Glossing over key trends, automation through cloud computing, augmented reality for immersive home experiences, IoT for smart homes, big data for targeted advertising, fractional investing enabled by blockchain, and 3D printing architectural prototypes take the cake.
As the industry continues to grow, we can expect to see even more innovative solutions that will completely alter the way we buy and sell properties. We must recognize the source of technological innovation and proptech trends.