Recently, the rise of new technologies has led to a revolution in the way we work. Many sectors flourish and flow to the world of real estate. One of them is the blend of technology and innovation in the real estate sector: the Proptech.
But what is Proptech? The contraction between “Property” and “Technology” takes over all start-ups that provide new products, technologies or models for real estate markets. More clearly, these are companies that offer solutions for the real estate sector with a focus on digital. From the creation of software to the improvement of existing solutions, Proptech start-ups are present on different terrains. This definition is very broad because Proptech encompasses different sectors within a larger market. This ranges from finance (Fintech) to construction (Contech) through the Smart Real Estate (villages and smart buildings).
One of the major challenges of Proptech is the optimization of resources available in terms of time, money and staff. Proposing solutions to automate administrative procedures or anticipate customer needs are for example tracks largely under study. Proptech will seek to lower the cost of capital for the investor, reduce the cost of building construction, facilitate administrative procedures for the owner and respond to questions from the occupant. The main objective is to simplify and speed up processes related to the real estate sector.
The investment in Proptech has been staggering in recent years. In 2012, the investment in these start-ups was 221 million US Dollars against 6.4 billion in 2017. This money has been invested in more than 800 start-ups and others are just waiting to grow. These investment funds have largely understood that these companies were a gold mine and that they would bring usable and profitable solutions away.
The other important milestone in Proptech’s history is the first $1 billion worth of Compass. This company combines Big Data and real estate account SoftBank, Fidelity, Goldman Sachs among its investors, making it a heavyweight real estate market. Its advance on the data collected gives it a certain lead over its competitors and allows it to offer customized offers tailored to its current and future customers.
Among the innovations of Proptech companies, the virtual visit has taken an important place. What could become a prerequisite for real estate agencies in the future has been developed with the aim of simplifying the work of advisors and clients. The principle is to take 360° photos of the rooms of a property and assemble them. The technology presented makes it possible to move forward in housing and to feel as if one were actually visiting the place.
Being able to have a pre-visit in 3D has much more impact than with 2D photos that do not really allow to realize the arrangement of parts, volumes and available space. In addition, this offers the real estate advisor the opportunity to expose the hidden potential of a property to the customer (adding / removing a partition, color combinations, etc.)