What to expect from proptech in 2020
Proptech is anticipated to disrupt the real estate industry in new and creative ways.
What is proptech?
Property technology (proptech) is a new sector that merges technology and real estate. Proptech uses technology to change the way people buy, sell, rent, and live in their homes. Companies in the proptech sector, like Homicity, aim to improve the industry for the benefit of consumer and real estate professionals.
Emerging trends in real estate
According to a report by PwC Canada, “Proptech will soon not be a novel concept. Technology will be embedded in all aspects of real estate”. This emerging trend in real estate will disrupt the industry in several creative ways, from integrating artificial intelligence to boost energy efficiency to using drones to monitor construction progress.
Survey results published by PwC indicate that construction technology will be the number one real estate disruptor in 2020. In the next few years, we will see increased technological development in a wide range of areas related to the construction sector.
One such area is the introduction of 3D modelling and printing, which will change the way homes are planned, designed, and constructed. Another is the exploration of virtual reality could also improve the construction process by revealing potential blind spots during the early stages. There are also several companies interested in the exploration of robotics to reduce labour shortages in construction, though these solutions are unlikely to appear anytime soon.
AI-powered digital voice assistants, like Alexa and Siri, have become an integral part of people’s daily lives. Adding artificial intelligence to the Internet of Things has completely changed the way we live. The use of artificial intelligence can be adapted specifically for the real estate industry and is a trend that will continue to emerge in 2020.
We have already started to see how artificial intelligence is being used in the real estate industry. For example, IMRE is an artificial intelligence personal assistant for realtors and developers. As well, Homicity’s smart search engine is powered by AI to help consumers find their perfect home.
Real estate as a service
In recent years, the concept of real estate as a service (REaaS) or space as a service (SPaaS) was created thanks to technology-enabled changes. This led to the rise of co-working and co-living spaces, turning landlords from rent collectors into service providers. In this new model, prospective tenants are no longer only looking for physical spaces, but also additional services and amenities.
According to a report released by Urban Land Institute and PwC, this shift can be attributed to a community state of mind. These shared spaces are appealing because it helps save costs and provides opportunities to meet others with similar interests.
In 2020, this SPaaS will continue to disrupt the way in which we rent, changing both the commercial and residential real estate industry. It is also likely that more proptech companies explore new opportunities to enter this profitable sector.
So, if proptech is a booming industry, why is it that we haven’t seen many changes in the real estate industry?
Well, a major reason why it’s slow is that it’s hard to get access data. Unless you’re a real estate professional in the industry, you won’t have access to home-sale data and other important information.
The exclusivity in accessing data has been a long-standing issue, one that has been brought all the way to the Supreme Court. Following this court decision, there is now increased access to housing data. By removing the barriers and restrictions, there will be more competition and innovation in the real estate industry.
Over the next few years, we will see an increase in products being created for professionals and consumers alike.
How does this impact consumers?
Overall, consumers will benefit from a new business model in which they are put first. Proptech will lead to new innovative products being created to increase consumer awareness and promote transparency. Not to mention, proptech will completely change the way we live as continue to explore the boundaries of artificial intelligence.
How does this impact industry professionals?
As the real estate industry changes, so will those working within it. Home and real estate professionals will need to keep up with this digital transformation of real estate by improving inefficiencies and adopting innovative consumer-driven models. It will become important for them to embrace proptech as it creates new products designed to simplify the real estate process.