Understanding Property Technology
Property technology (PropTech) is the term used to describe the wave of technology innovations set to disrupt real estate markets.
The PropTech market kicked off in the 1980s when software developed for the commercial real estate space, was introduced by Autodesk and NCREIF, and there shortly after, Yardi and CoStar. It wasn’t until the mid-2000s that technological advances in computing ushered in a new class of PropTech giants like Rightmove, Trulia, and Zillow.
The future of the real estate industry is hard to predict at the moment, as PropTech is still just starting to make its presence in both the residential and commercial property sectors. There may be some work to get through before its effects are as prolific as the FinTech (Finance Technology) disruption we are currently witnessing. As with all other disruptive waves, the future is closer than we might think.
Will PropTech change real estate?
Yes! Even though it is impossible to predict the future of technology, we can make informed assumptions based on existing PropTech ecosystems, along with evolutions of previous tech waves. The adoption and longevity of any technology ultimately rely on whether it brings economic value to its consumers.
In the world of real estate, this means that many real estate professions will be enhanced by new and emerging tech while others may be replaced entirely.
Should real estate professionals be concerned about the rise of PropTech?
In short, it depends. The tech revolution has left no industry unscathed. The changing landscapes present huge opportunities for early adopters. All industry participants (professionals, companies, the general public, etc.) that are slow or resistant to change, risk being left behind, or worse, becoming obsolete.
This tech wave is blurring the lines between the physical and digital worlds, merging them forever closer. The change that technology brings is game-changing, the benefits to those who capitalize on it early are similarly game-changing.
How do you stay ahead in the evolving PropTech world?
How are the needs of the general public’s evolving? What technologies can you adopt that will improve the quality of life of the users? Easy to use, tech-based tools will make the difference now, and in the future.
Keep up to date with industry news and in particular emerging tech.
Keep yourself informed and view technology as a crucially important topic.
Set aside a budget for investing in technology. Be sure to develop a strong base understanding of PropTech before assigning funds. Invest in PropTech to improve your clients, customers, or your own experience.
Which technology should you adopt first?
Anyone working in the real estate industry knows that valuation tools are ambiguous for real estate. Due to real estate’s unique nature, the valuation of the investable side of the industry faces issues such as:
Using tools and software to automate finances adds tremendous value and serves as a good base that other technologies can adopt down the line.
Streamlining and optimizing the bulk of any real estate project, will add to the bottom line, and increase profitability.
Let Algocog’s free real estate valuation tool find you money, automating a large portion of the research and development portion of your project, saving you time and money.