The proptech industry is poised to enter several new realms in the near future, and certain technological developments will play crucial roles in shaping its future.
FREMONT, CA: The convergence of technology and real estate has lent the transformational push to the traditional aspects of property trading. With a high-tech approach, proptech firms are influencing the ways how properties are bought, sold, rented, and managed. Incumbent players are benefiting from increased efficiencies, new revenue streams, and better management capabilities owing to the technology-backed innovations that proptech firms are providing. This has resulted in high demand and growth for proptechs. To sustain the current position in the market or to make it better, CIOs in proptech firms need to anticipate future demands and devise business strategies accordingly. Leveraging the right evolving technology will enable CIOs to secure places for their organizations in the prospective future markets, and facilitate the real estate industry’s digital transformation. Some recent developments that CIOs should consider are listed here. And these are expected to play predominant roles in shaping the future of proptech industry.
• SPaaS Business Models
Traditional business models possess several loopholes that are more prominent in today’s digitalized world. To help the real estate sector overcome these, proptech firms are currently offering innovative business models, which include the best aspects of the conventional, as well as the modern. One such model that is expected to gain significant acceptance through proptech solutions is that of space-as-a-service (SPaaS). With SPaaS, landlords can offer several services and utilities to tenants, and enhance business opportunities in a highly competitive space.
• App-based Solutions for Better Communications between Stakeholders
The need for better communication tools between property owners, tenants, brokers, realtors, and other stakeholders is growing. Proptech can provide the real estate industry with effective solutions that will enhance communications, resulting in better collaborations and minimum friction in business dealings. Software solutions to streamline interaction are expected to find many takers. Apps and platforms will change the way properties and services are offered and traded.
• Asset Tokenization for Efficient Investment Practices
The adoption of blockchain-based technology for real estate asset trading and investment is still at its nascent stage. There are several benefits that asset tokenization confers to property owners and developers. Tokens enable fractionalization of ownership and drive better investment in bigger properties. Traditionally, investing in real estate properties used to be unaffordable for many. With tokenization, multiple tokens with lowered minimum investment values are driving the entry of new investors leading to increased liquidity in the real estate industry. The tokens once bought, can also be sold in secondary markets just like securities. Blockchain offers immutable records, heightened transparency, and streamlined transactions. The proptech industry can thus count on blockchain technology offerings to disrupt the real estate sector significantly.
• Modern Approach to Property Management
Property portals have become common today. From owners to tenants and realtors to brokers, everybody is turning to online platforms to meet prospective business matches. With the incorporation of advanced technology-based features, the portals are expected to offer more benefits. Driven by smart algorithms and artificial intelligence-backed engines, the portals will make property management an extremely smooth and enjoyable process for dealers and customers alike. Digital adoption is at a peak, and proptech is poised to introduce interactive visual technologies like AR and VR into the property handling portals, creating engaging experiences.
Proptech firms can uncover the untapped market for real estate innovations and continue to enjoy explosive growth in the future. Increased adoption of technology-backed solutions by real estate firms will attract impressive funding, contributing to the surge of opportunities for proptech startups.