Proptech Transforming Real Estate
Proptech is a term that combines “property” and “technology” and that refers to the emergence of startups and technology companies that use innovation to transform the real estate industry.
Proptech has experienced a significant growth in recent years, according to KPMG, global investments in Proptech reached approximately $23 billion between 2021 and 2022. In France, over 500 million euros were raised before the Covid crisis, for growth of over 200% in four years.
The emergence of Proptech has transformed the real estate industry by making it more accessible, transparent, and efficient. Proptech platforms have simplified and improved the process of searching and acquiring real estate properties. Users can access detailed information, view images, and take virtual tours. Some Proptech players even offer AI and big data tools to help buyers. Proptech has also disrupted the real estate financing sector by introducing online lending platforms. You can now use a single application on your smartphone to find your property, arrange a loan, take out a guarantee or an insurance.
The leitmotiv of these new players is to make the buying or renting process easy.
Startups have introduced digital property management tools, simplifying processes such as rent collection, property maintenance, and communication between landlords and tenants. Online rental platforms also enable tenants to find housing, apply online, and digitally sign leases. And since the Covid-19 crisis, some players have been trying to reinvent the market by buying properties, renovating them, furnishing them, and reselling them in several units. Digital technology such as blockchain makes it possible to “tokenize” properties and opening up investment to all portfolios. You become a micro-investor.
But Proptech doesn’t stop at transactions, property search, financing, or insurance, it also enters the construction business. Buildings now integrate smart technologies to improve energy efficiency, safety, and occupant experience. Connected building management systems, smart sensors, and home automation solutions are used to optimize energy consumption, monitor equipment performance, and create intelligent and personalized environments. Many low-carbon construction companies are also being financed around the world.
The global real estate market, worth around $325,000 billion, is in the early stages of its transformation. New uses are emerging and will continue to flood the market.
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