Property Technology or Proptech is a combined term used to explain the application of information technology (IT) in helping individuals and companies to buy, sell, rent, build and manage real estate. In layman’s terminology, Proptech is similar to finance technology (FinTech) which focuses on the use of technology in the domain of finance. While the 2018 saw significant advances in diverse fields like Artificial Intelligence (AI) with tools like virtual reality being used for giving guided tours, use of blockchain technology for financial transactions, the year 2019 appears promising as property transactions have now moved beyond the simple business of buying and selling and has encompassed within it the ever-changing digital landscape and consumption patterns.
- Tenant Apps to grow more popular: Get prepared to say goodbye to traditional property management platforms like real estate agencies and brokers. In today’s time of 24-hour uninterrupted internet and smart phones, it is no longer necessary to have an intermediary between the owner and landlord. Moreover, in the context of India, with a huge population of young people migrating out of their homes for study and work, co-living can be considered as another option to the other alternative of living as a paying guest.
- Growth in Space as Service Platform (SPaaS): The idea behind space as service platform is to change how the commercial real estate industry has been providing services to tenants. It has meant a paradigm shift in the traditional manner of functioning of landlords from being rent collectors to service providers. Through this model, landlords provide an array of services which enables tenants to utilize the area under rent in an efficient manner, ensuring that everything varying from digital connectivity to furniture, fixtures and even the staffing requirements are met.
- Tech companies will drive the change: It is expected that investments in the Proptech domain are slated to increase globally and India too, is a hotbed for investments. The real estate industry is the single largest non-farm employer in our country. It still operates in a fairly antiquated manner, thus providing a vast scope for Proptech companies to create efficient solutions. A large chunk of Proptech companies like Livspace, Furlenco, Squareyards and RealtyX, provide a diverse array of services in this domain and have a huge potential for growth.
- The arrival of 5G: As far as attracting more tenants and garnering funds is concerned, 5G will take things forward this year. Access to 5G through mobile phones is set to improve digital connectivity leading to an increased impetus on the Internet of Things (IoT) while also providing solutions facing the Proptech industry.
- Use of Big Data: It is expected that the use of new technologies in the real estate sector will improve the construction process and increase profitability for the players. Through the use of virtual reality technology, it will become easy to keep track of the status of projects under construction. The use of Big Data in mapping and machine learning to present prospective property investors and customers with the most relevant and attractive offerings is also another way in which this technology is being used.