While technology has permeated and disrupted most industries that make up the fabric of the Indian economy, real estate (the world’s largest asset class) has been slow to adapt to the technological revolution. However, the effects of property management software, or proptech, on the industry and our lives are far-reaching than you might think.
Proptech, or property technology, is a type of tool that simplifies the buying, selling and management of real estate. It is the underpinning technology used by real estate professionals to improve systemic inefficiencies and digitise transactions from beginning to end.
Its example can be a platform that offers property prices in Mumbai, Hyderabad, Thane, Bangalore or any part of the country through its AI prediction models and fetched properitorydata(price trends, history and price transactions).
Clicbrics, an online real estate platform is driven by technology expertise and real estate experience and aims for crafting impactful transformations through data intelligence. Today, every innovative home-buying journey they inspire, is driven by in-depth insights.
AI and Machine Learning algorithms at Clicbrics provide users with everything they need to see, from price trends to real-time transactional pricing on a project they are investing in – and that too, in just a few clicks.
Proptech Trends That Every Proptech Company Must Acquire
Did you know that the global real estate industry was valued at $3.81 trillion in 2022 and is forecasted to grow at 5.2% CAGR till 2030, as per a report.
The real estate sector is all set for innovation and technological disruption as global population growth drives up demand for housing. In this article, we will look at some exciting trends every good proptech company in India must adapt to change the way we interact with property management in 2023.
What About IoT and Smart Homes?
The Internet of Things (IoT) is an umbrella term that refers to any device that connects to the internet to send data and respond to commands (such as refrigerators, digital locks, thermostats, smart lights, and voice assistants).
The Internet of Things enables property managers and businesses to track and monitor their usage remotely. Data can be analysed to identify patterns, reduce energy waste, and build secure smart homes.
Property managers have traditionally made decisions based on their experience, expertise, and knowledge. However, digitised operations generate massive amounts of data, colloquially known as big data. How you collect and manage data in 2023 could be critical to your company’s success.
Some of the advantages of big data are:
- Property valuations that are precise
- Targeted marketing campaign
- Risk reduction during the tenant selection process
- improved decision-making
Chatbots can help you automate and expand your interactions with prospective customers. In an age when the internet is the primary source of lead generation, having a 24/7 customer service portal is essential to reducing missed opportunities.
A few other advantages of chatbots in proptech are:
- Customers receive immediate responses and do not have to wait long.
- Respond to existing tenants’ service requests for maintenance, rent, and lease.
- You can record interactions with potential customers and figure out what they want.
AI and ML
While big data in real estate is about organising massive amounts of data, AI and machine learning can assist you in making sense of the collected data.
Artificial intelligence, as far-fetched as it may sound, is already here. Thousands of real estate agents and homeowners already use it, and many more are influenced by the invisible calculations AI performs behind the scenes. Bots, in various forms, are literally determining everything from home prices to the colour of paint in listing photos.
Collaborations and Investments In The Near Future
In 2023, this will be a major trend in the proptech space. Most industries are experiencing a surge in mergers and acquisitions. Major acquisitions will occur in the real estate industry, with depressed valuations and increased demand for all-in-one solutions.
According to reports, venture capital and IPOs will become scarce in the future, prompting proptech startups to merge with larger players and integrate their products with all-encompassing property management systems.
More such deals will be seen in the coming years, with a particular emphasis on real estate’s three aspects — smart buildings, smart workplaces, and data-driven decision-making.
Proptech, Fintech, and Contech
Proptech is a broad field that includes all aspects of property management, such as construction, renting, leasing, and accounting. It consists of construction technology (contech), which conceptualises, designs, and manages construction, as well as financial technologies (fintech), which allow you to accept rent, process payments, and automate bookkeeping.
Some of the exciting proptech-fintech-contech applications include:
- Wearable technology for the protection of construction workers.
- Drones and other robotics will be used to help with construction.
- Algorithms for analysing historical data and developing new mortgage underwriting techniques
Proptech companies will face new challenges and technologies in the coming years. Knowing the right trends can help strategically position your proptech business to reap maximum benefits from opportunities as the winds of change blow through the real estate sector.
Proptech solutions for businesses can assist you in adapting to these trends and staying ahead of the competition.