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Real estate may not be the first sector to spring to mind when you think of industries that embrace technology. But the sector is rapidly moving on from old concepts thanks to technological advances.
Investors, buyers, and entrepreneurs are all leveraging these PropTech (property technology) tools in exciting and meaningful ways.
Data Analytics
It’s hard to believe that the real estate industry took so long to utilize Big Data. Finally, we’re seeing intelligent systems model, transform, organize, and analyze raw data to detect patterns and help industry players make wiser decisions.
Real estate thought leader Regan McGee is no stranger to big data. McGee is the founder of Nobul, a disruptive PropTech platform that uses state-of-the-art technology to analyze millions of real estate transactions and reviews in order to help homebuyers and sellers find the best agents for their needs.
“The real estate industry is awash in data, yet we as a sector have not really embraced the tools available to leverage that flood of information,” McGee shared with Digital Connect Mag. “But, when the real estate market really started to heat up last year, we as an industry finally started to see the light and embrace the benefits that data analytics have to offer.”
While buyers use data analytics to find upcoming investment opportunities, rental property companies utilize sophisticated tools to predict renter psychology. Big Data crunching systems are also helping the real estate industry stay more current with customers.
“That matters tremendously when the market is as hot as it is right now,” Regan McGee added. “But, more importantly, customers have come to expect that kind of immediacy. They get it with Uber, which can tell you within minutes when your driver is coming to pick you up. And they get it with Amazon, which can tell you almost exactly when your package is going to arrive.”
Construction
Generation X and younger millennials become a more significant part of the real estate market every year. These two cohorts are fueling demand for smarter buildings with modern amenities and smaller carbon footprints. It’s also critical for PropTech to be convenient for a generation that’s used to making complex decisions from their fingertips.
Eco-friendly buildings that feature smart sensors for lower energy and water consumption are leveraging PropTech to satisfy the new demand. Meanwhile, IoT appliances, thermostats, lightbulbs, and heating and cooling systems integrated into modern buildings are easy to manage from mobile phone apps.
Similarly, the construction industry is adopting advanced PropTech tools like project management systems to manage, create, and share plans and documents. These platforms can help boost productivity and efficiency. Teams communicating through this software can collaborate on projects too.
Market Reach
With billions of people on social media, digital marketing tools are helping property owners reach audiences on Facebook, Twitter, Instagram, and even TikTok. Targeted marketing PropTech helps advertisers hit niche markets online. For example, homes in urban locations featuring modern amenities can be more visible to younger buyers. In contrast, homes near highly rated parks and schools are more visible to older millennials and baby boomers.
Some marketing PropTech can offer interested parties virtual home tours through 3D modeling. PropTech can also reduce transaction times to help buyers purchase properties more quickly.
With prices rising, homebuyers are looking for more convenience and value from the real estate industry. PropTech is turning out to be a big part of the solution.
