4 PropTech trends for 2020
Whilst many would agree that the property world has been slower to react to technological advances than others, the industry has indeed woken up in recent times and continues to make progress in its digital transformation.
As we mentioned in our last blog, Proptech is to the property world what fintech is to the finance world. and as a company that prides itself on embracing the innovative and technological, we wanted to share the four ‘proptech trends’ we think you should watch out for.
1. Big Data
The power of data analytics cannot be underestimated. From more accurate and faster appraisals to advanced forecasts, there is no denying that leveraging data can lead to more thoughtful and lucrative property investments. After all, there’s a reason Deloitte concluded that: “Data is the new gold." The more data property companies have access to, the more you are able to make informed and direct decisions. “Big data” is all about gathering the most up-to-date and accurate information. For example, when it comes to collecting and analysing data about building systems, it can lead to property investors and landlords being proactive when it comes to things like maintenance.
Companies such as Redfin and Zillow are currently collecting data on the selling and buying trends in certain areas. They’re also collecting demographic information, etc. and analysing them to gain insights on the potential value of certain neighbourhoods and to gage better insights on pricing. There are also advantages for landlords, who can use the collected data, especially when it comes to property maintenance and tenant experience. How great would it be if landlord's were able to foresee unnecessary utility problems?
2. AI, Machine Learning and IoT
The past few years have seen the real estate industry increasingly being shaped by artificial intelligence (AI). From automating the leasing process to recommending properties based on preferences, personality traits, and values – AI and machine learning are helping to take all the data being collected and making the most out of it.
“AI can improve and enhance almost all digital consumer experiences delivered by property agencies” – Forbes
The Internet of Things (IoT) is already being used for smart property management. According to the International Energy Agency, IoT technology could lower the energy consumption of residential and commercial buildings globally by as much as 10% between 2017 and 2040. It could also reduce the workloads for real estate service providers.
There are a number of smart devices that are already being used for property management and now smart tech is also taking the form of smart cities and buildings. An example of this is Dock 72 in Brooklyn, New York. The office complex makes the most out of IoT, with the property’s stakeholders’ developing an application that includes features such as real-time reporting of maintenance requests and shared-space reservations. The developers plan on further leveraging data and IoT to create a better tenant experience.
“Utilizing technologies such as artificial intelligence (AI) and the Internet of Things (IoT) has become an imperative for the commercial real estate industry.” – Jim Berry, Deloitte and Touche LLP
3. Virtual Reality and Augmented Reality
Augmented reality (AR) and virtual reality (VR) are fast becoming staples of the property market. A survey by the National Association of Realtors highlighted that nearly 50% of all potential property buyers search for investments online first. AR and VR have made this online search more accessible. These tech advances create a computer-generated, virtual world that simultaneously detects reality in real-time. These can include sensory impressions, which allow users to feel like they’re really in the room. This can be useful for buyers who are looking to invest in developments where construction has not even started. The use of VR and AR can save a lot of time and money while also creating a better experience for buyers and investors. This is a tech trend that is sure to see more growth as time goes on, especially when we consider the repercussions of this pandemic.
4. Property as a Service (PaaS)
A growing Proptech trend is 'property as a service'. The idea behind it is very client-centric and influences property business processes by ensuring that quality of service is a priority. According to KMPG, there are 3 main groups that those in the property market need to focus on:
⦁ Tenants ⦁ Property owners ⦁ Investors/stakeholders
By embracing the idea of ‘property as a service’ it allows businesses to successfully analyse and identify their audience, which in turn makes it easier to prioritise company goals.
And there you have it, 4 Proptech trends to watch out for. At Normette Homes we firmly believe that property companies must not just stay up to date with these trends, but also embrace them or risk being replaced by new technology.
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Normette Homes specialise in property investment and tenant sourcing.