BACK TO BASICS SERIES by Francesca Gold
Property Technology is the use of IT to aid companies and individuals research, buy, sell, and manage property.
Examples of PropTech
But what forms of tech are used? Virtual reality software can be used to give buyers a virtual tour of a property, split rent payments, crowdfunding and reporting repairs in buildings. Active buildings are becoming common, where properties include digital dashboards to monitor energy usage to enable control for owners. Renovations can also be improved, as blueprints are virtually created and digitally shown to the user, saving time, money and paper. Renewable energy is another aspect of PropTech which creates opportunities for sustainability, just like FinTech.
Pros vs Cons
As with anything that is digitalised, PropTech is designed to encourage a streamline process from start to finish. This can include buying, selling, brokers, lenders and landlords- so every participant in the process is benefited from PropTech. Just like FinTech aiding finance through tech, Proptech uses digital advancements to enhance real estate. Data can then also be collected on the buyer and consumer insights are enhanced and integrated with market, building, and occupier data for improvements to the user experience.
However, there are challenges for the property sector as it considered behind the times compared to other industries using tech. There have been concerns that it cannot keep up with sectors, but these concerns are outweighed by the benefits. Renewable energy is another aspect of PropTech which creates opportunities for sustainability, just like FinTech.