Just a few years ago, the word PropTech was not common. In fact, it was not even used. Currently, it’s an electric new term, a “buzzword” that people in the real estate industry throw around like confetti. But what exactly does PropTech mean?
PropTech, or Property Technology, also known as real estate tech, is a portion of a larger, more widespread digital evolution in the property industry. As landscapes change and mentalities shift to a more digital age, so does the real estate industry and its consumers.
PropTech is more of a collective term, it can be utilized to describe start-ups who offer new, technology-driven, innovative products and business models. Basically, it describes all the companies and people who are ushering the real estate industry into a new digital era. This idea can span over many areas of real estate. Think of technology in software, hardware, business models, building materials and even manufacturing. The word PropTech can also be thrown around to mean any general tech-based startup or their technologies.
What’s All the Fuss About?
So why has PropTech become such a hot term recently? Well, PropTech is no longer just a mysterious idea or phenomenon. It has begun being implemented in real life real estate settings. Investment in PropTech as a whole is up to nearly $12 billion and climbing. Investors also see this growing market as untapped, with limitless possibilities for gains in the future.
So you may be asking yourself, “Why should I care about PropTech?” It is likely you use PropTech in your everyday life or profession already. If you are an investor, PropTech can help manage your assets and can also be a great investment opportunity in itself. PropTech can help maximize gains and deliver portfolios to organize yourself and your properties. For landlords, smart home options are a part of PropTech and can up your property’s value. For example, Alexa, Ring, and Nest are all under PropTech’s description.
For developers, PropTech includes manufacturing materials and products in a more technologically advanced way, which can save money in the long run. If you are an everyday consumer, buyer or someone interested in real estate, many of the online property search options fall under PropTech in one way or another.
So, as a real estate professional how can you keep up with PropTech and its growing changes. The best thing to do is keep up with industry news and educate yourself on current information. This way, you can stay ahead and anticipate changes, allowing yourself to make the best decisions possible. Be sure to remain open-minded as the technological future continues to evolve. It is important to grow and embrace the changes that have been introduced with PropTech and similar ideas. It is important to be able to explain to clients if they have any questions on the subject.
As the PropTech industry continues to develop it is important to grow and evolve with it to be able to maximize your potential as a real estate professional.