Will crypto exchanges
transform real estate?
The successful adoption of PropTech will depend on how much value it can add to transactions
July 22, 2022
Real estate transactions can be challenging, especially when it comes to communication between the seller and the selling broker on one side, and prospective buyers and their buying broker on the other. Now, new technologies can be used to fix these issues.
Being one of the last markets to embrace digital technology, the real estate industry is actively taking part in a new technological trend. As a result, startups in this industry are likely to receive more funding if they use AI and ML, the hottest trend in PropTech.
ProTech is a term that is formed by merging Property and Technology, which includes various digital solutions involved in the growth of online real estate transactions.
However, long-term investors take a certain risk by investing in the present market. The real estate industry is already enjoying its best time ever with more buyers than sellers, and individuals having more trust in real estate property as an investment tool than in stocks or similar assets.
It is predicted that the global population will double by the end of 2050. This means that real estate platforms offering automated online rental and property purchasing will become more popular in the coming years. PropTech is an emerging real estate technology that could redefine the industry in the future.
What Is PropTech
ProTech is a term that is formed by merging Property and Technology, which includes various digital solutions involved in the growth of online real estate transactions. The term is used in information technology (IT), and helps individuals and companies research, buy, sell and manage real estate, similarly to the way FinTech focuses on the use of technology in finance.
PropTech uses digital innovation to address the needs of the online real estate industry, a young industry that is expected to grow exponentially in the future. The process can be further subdivided into CREtech and REtech, which means Commercial Technology and Real Estate technology, and usually refers to software and tools used in the real estate industry.
‘PropTech is an emerging real estate technology that could redefine the industry in the future.’
Real estate industry leaders have already foreseen the success of PropTech and have started investing in it massively. With available funding, the growth of the online real estate transactions industry is showing no sign of slowing.
Real estate technology trends
The successful adoption of PropTech will be determined by how much value and convenience it can add to transactions and the users’ quality of life. According to the latest report published by NAR Home Buyer and Seller Generational Trends, users want floor plans, images, real estate contracts, and if possible virtual tours available to them free online. While these services are available on some big real estate platforms, they are proprietary and exclusive of other banners.
‘With PropTech, buyers and sellers can communicate in real-time and share files and plans related to the property transaction.’
The following trends will define how the real estate industry will evolve:
Automated rental and purchasing platforms
Today, everything is happening online, and today’s buyers and sellers want to find their ideal match through simple online communication, without having to deal with real estate brokers. According to a NAR report, more than half of generation X prospective buyers look online for properties. This trend clearly shows that people want to step up to automated platforms where there is less interaction between them and brokers and where they can easily find their favourite property.
According to McKinsey’s Research, real estate apps based on artificial technology and machine learning can predict changes in the rate percentage with 90% accuracy. If buyers and property owners can access such software, the results can be better investments with more satisfaction in property transactions. However, databases and data warehouses, where all the sensitive information is kept, have always been a major cause of concern for consumers. The sharp rise in rent costs we saw this year is also causing concern to renters and brokers alike.
Blockchain for real estate
Some people might not be able to immediately make the connection between blockchain and real estate property. However, they might be aware of how blockchain is used to create crypto-currencies.
For a while, the blockchain concept was limited only to crypto-currencies, but when applied to real estate transactions, the public ledger technology on which blockchain works can be used to verify transactions and ensure there has been no tampering with the financial records related to the property. To learn more about the relationship between real estate property and blockchain, visit crypto exchanges.
Robotic process automation
Real estate transactions can be challenging, especially when it comes to communications between the seller and their selling broker on one side, and prospective buyers and their buying broker on the other. Now, new technologies can be used to fix these issues.
‘Real estate industry leaders have already foreseen the success of PropTech and have started investing in it massively.’
With the successful implementation of PropTech technology, buyers and sellers can communicate in real-time. In fact, it will not only be limited to communication: they can also share files and plans related to property.
The future of the online real estate transactions
Proptech is a young industry that is expected to grow exponentially in the future. As the world population is expected to double by the end of 2050, the demand for real estate properties will also double.
As the world’s citizens get comfortable with the PropTech technology and the real estate industry is supported by funding and technology, the online real estate transactions industry will continue to grow. And since everyone is interacting with the real estate industry to some extent, it may impact the lives of many individuals in the years to come.
Read also: Real Estate Talk: Avoiding risk when buying