The exponential growth of digital technologies is disrupting every industry and the real estate sector is no exception. For years, the real estate and construction sector have been lagging in their efforts to adopt digital technologies and innovations. However, with the industry becoming more competitive, companies are compelled to explore the potential of digital technologies to cater to the changing demands of customers and ensure a dominant market position.
Over the past years, several complex technological advancements have made their way into the real estate sector, completely transforming the way in which properties are being developed, sold, and managed. If we observe the recent market trends, it is quite evident that the future of the sector is not going to be driven by delivering a four-walled structure to the customer. Instead, it will be about ensuring a bespoke experience for the customers that can foster long-term interaction and collaboration. The property management division of the realty sector plays a significant role in it. However, with immense tasks piled up over the property manager’s head, the process can become cumbersome and even fail to deliver its goals. This is where the influence of ‘Proptech’, the intersection of property and technology, can be leveraged.
Proptech, also known as property technology, refers to all the technological tools used by real estate professionals to improve how consumers buy, sell, study, promote, and manage properties. The use of Proptech technologies can increase the speed and transparency of buying, renting, and selling real estate as well as open up new possibilities for how people might use and occupy space. The modern generation of real estate customers prefer stress-free and easy transactions. Unlike traditional practices, most property buyers/sellers now rely on their mobile phones to fulfill their renting or buying requirements. For instance, a report from the National Association of Realtors indicates 43 percent of buyers look online for properties on sale, while only 18 percent contact a real estate agent directly.
The advent of Proptech tools into the real estate market benefits it in several ways - it is not only for buyers, sellers, and landlords but also for real estate companies and investors. With the growing adoption of Proptech solutions, the market now offers an immense volume of real estate data, which was a challenging task in offline transactions earlier. As the changing expectations of investors, businesses, and customers are pushing the sector to boost its transparency and openness, the role of Proptech tools has become even more crucial.
As we all know, real estate is a people’s business, in which effective communication plays a substantial role in determining each transaction’s success. Maintaining clear communication with all parties involved in a real estate transaction helps in a smoother and faster closing of a deal. Earlier it was an enormous task to maintain a proper connection between multiple parties involved in a deal through the offline mode. However, the Proptech tools like chatbots have made communication between landlords, tenants, and other stakeholders easier, thus helping the parties to make an informed decision.
Furthermore, the integration of property technologies into real estate procedures has enhanced the productivity of the sector. Effective deployment of Proptech tools is vital in the competitive real estate market, where businesses need to stay innovative to keep the wheels turning. Offline real estate procedures, which involve manual work, spreadsheets, live tours, and bureaucratic procedures, take a lot of time and money as well as they could be prone to error. However, with advanced real estate technologies, businesses are streamlining their procedures for all parties involved to get through a hassle-free real estate journey.
The surge of digital tools in the real estate sector is offering lucrative benefits in a number of ways. One of the most prominent advantages of digitalization in the industry is the ability to connect property agents with more prospective buyers and sellers. The digital transformation in the real estate sector is accelerating from being the talk of the hour to the need of the hour. Hence, businesses would need to be better prepared to embrace new technologies to stay relevant and agile in the market.