PropTech stands for ‘Property with Technology’ and predominantly relates to property management devices and software. In this article, we will talk about what technology is and the good and bad changes that will take place.
Everyone involved in the property will have to be aware of the changes as there should be good and bad outcomes for everyone involved including property managers, letting agents, landlords, and also tenants.
However, overall, most people welcome PropTech as something that will change the property industry for the better and come with enough advantages that outweigh the negatives.
What is PropTech?
PropTech is a term used to describe the use of technology in the property industry. It involves the integration of various technologies, such as online real estate portals, drones, 3D printing, data analytics, and cloud-based PropTech software, to create new solutions for buying, selling, renting, and managing properties.
The goal of PropTech is to make the property sector more efficient, transparent, and cost-effective. It has the potential to revolutionize the way we use and interact with property by introducing new possibilities for how we occupy space.
Investment in PropTech has been on the rise in recent years, and it is expected to grow significantly in the coming decade making it an emerging sector of growth.
If you wish to know more about read here about PropTech in Residential Real Estate Sector and PropTech in Commercial Real Estate Sector.
Why is PropTech changing Real Estate?
Property technology is becoming more and more advanced in India as well as globally. As the years go on, there’s a chance that property technology will be able to completely replace some services that property managers and letting agents provide.
For instance, you could see property technology automatically being able to call contractors and professionals to help with maintenance without authority given by a letting agent
How is property technology set to change in the future?
Property technology, or “PropTech” for short, has been rapidly transforming the real estate industry in recent years. In the future, we can expect this trend to continue, with even more innovative technologies and business models emerging. Here are some potential ways in which PropTech could change in the future:
As virtual and augmented reality technologies continue to improve, we can expect more and more property viewings to take place online. This could make the buying and renting process more convenient for customers, as they can view properties from anywhere in the world.
Artificial intelligence (AI) could be used to automate many processes in the real estate industry, from property management to mortgage underwriting. This could lead to increased efficiency and cost savings for businesses.
Blockchain technology could be used to create more transparent and secure property transactions, by allowing for secure digital signatures, smart contracts, and other tools that can reduce fraud and speed up the buying process.
The sharing economy has already had a significant impact on the real estate industry through platforms like Airbnb and VRBO. In the future, we can expect more businesses to leverage this trend by offering shared workspaces, storage spaces, and other services.
With growing concerns about climate change and the environment, we can expect more PropTech companies to focus on sustainable building materials, energy-efficient design, and other eco-friendly initiatives.
Overall, the future of PropTech is likely to be characterized by greater automation, efficiency, and convenience for customers, as well as a stronger emphasis on sustainability and innovation.
What are the good changes that PropTech will have?
In the below heading, we will be going over all the good things to do with property technology and all the bad things too.
Spark the growth of VR
The use of VR in technology and especially property is an important concept. It will be common for house viewing to have realistic viewing where people can view the property in real-time without being there.
There are a few leaders in this space of this technology but the technology is yet to be properly integrated with the property software that already exists.
A more effective service
Human error and human limitations are big factors in the productivity of any business. As property technology takes over, particularly with property management software, there will be fewer errors and a more streamlined process.
Things like missed maintenance checks and sections of tenancy agreements that are missing are all things that will be reduced.
What are the bad changes that PropTech will have?
While there are clear advantages to property technology and landlords are also welcoming the technology too, there are some cons of the technology that all involved in the property should remain vigilant of.
From the privacy concerns of modern technology to the reduction in how personal management will become, read on for the bad things about PropTech.
As there are more smart home devices installed and utilized in properties this could cause privacy concerns for tenants. For instance, things like thermostats, cameras, door locks, security systems, etc. will all become advanced.
These otherwise seemingly harmless pieces of technology could end up causing a landlord to be able to track tenants throughout the building.
Another privacy concern comes in the form of location tracking. This is because systems are being developed that track the movement of tenants within a building in shrewd accommodations such as in HMOs.
Some would argue that the relationship between landlords, tenants, property managers and even letting agents is important.
Tenants who find they are connected to their landlord or whoever manages their property may feel a great inclination to look after the property and take care of it.
However, if there is a property that is solely managed by technology or AI, there will be no personal connection and the tenant may feel left out or as if they have an impersonal experience.
As a result, some landlords may choose to still have some level of personal connection perhaps by having a property manager who still oversees all operations. Also, in the commercial sector, this may still be the case to make sure that tenants continue to use a property how they should.
Unfortunately, as technology becomes more and more advanced, they start to replace jobs. This means people like property managers and letting agents may not have a job in the future.
If anything, the number of jobs available will certainly reduce and those that are left will be operating property management software and technology on behalf of landlords.
This is something that happens throughout all industries as technology advances, so it is important to be aware of it as it happens in the real estate industry so you can stay ahead and remain prepared.
In conclusion, Property technology is something that you should remain aware of if you’re planning on remaining profitable in business, no matter what type of property you’re involved in.
From property managers to letting agents and even tenants, there are impacts of property technology overall.
So, be aware of the pros, cons, and predictions for the future, and make sure you’re able to benefit from it in the future.