How Will PropTech Change Real Estate?

PropTech is changing the world. Ten years ago, the real estate market was vastly different, and a couple of generations ago buying houses was the norm. Now, with shifts in markets and developments in technology, the way we interact with housing is entirely different. Renting has become much more commonplace, and the ability to find properties online or in apps such as Rightmove have changed how easy it is to move, and have made living in multiple abodes throughout one’s life much more commonplace. This is all thanks to PropTech. PropTech has followed markets and leaps and bounds in what technology can do to give landlords and tenants much more control over their housing experiences. So, how is PropTech changing real estate?  

Ease of Use and Connectivity

First of all, now it’s incredibly simple to easily find somewhere to move to. In the past, letting agencies, bureaucracy, and tenancy fees were the norm. Now, it’s a lot easier to find a property, be put in touch with the right people (whether landlords or agents), and to organise a house viewing. This is changing real estate because it allows consumers and house owners to have an immediate, online connection with no red tape. The level of connectivity we’ve reached is one of the defining features of the 21st century, if not the defining feature, and this has changed how real estate is viewed, and how it’s consumed.  

Incentivisation to Invest

The developments in PropTech have then allowed for a further incentivisation for the real estate market to grow. In general, housing is a safe investment, and PropTech has helped incentivise growth in this market, as it simplifies an investment process. Now that it’s simpler to contact and connect with potential tenants, people are much more likely to own a second property and leverage rent to pay off a mortgage. Investment in the past felt like it was for a select group, or tied up in pension funds or savings, but PropTech developments have put power back into the hands of the consumer. In fact, it’s entirely possible to buy a second property and rent it out almost entirely online. 

The Future of PropTech Systems

Perhaps, therefore, this is the future of how PropTech will continue to inform and change how we view, consume, and leverage real estate. From the point of view of both an investment standpoint and from a buyer, there’s no reason why PropTech can’t continue to move further online. Especially with rapid advancements in IoT, the future of PropTech and property management should be a further move towards online, remote processes. It is entirely possible to set up AR or VR systems so that a remote house viewing can be conducted. This development will create a better market, as renters will be able to view more properties in a shorter amount of time, galvanising an already competitive market to be bigger and better. With this development, property management of all types of building will have to accelerate to keep up with the competition. Overall, real estate will become more competitive as PropTech continues to develop. Instead of having to narrow down a choice of property, customers will have a wider range of options that can range to further afield. When this happens, every property will have to be maintained to perfection to capitalise on the changing market.