The global property technology sector or ‘PropTech’ showed plenty of growth and promises in 2018, thus attracting a chunky investment to the category. As per RE:Tech, US$4.6 billion of venture capital was invested in the third quarter of 2018 alone.
Top executives of global proptech companies assure that this snowball effect will continue into 2019 as well.
Continuous innovation of property technology is augmenting management of the real estate industry from pre-sales to post-sale activities. From the time green fields are identified to finishing construction, PropTech plays a significant role in optimizing the costs for developers.
Tenants also hugely benefit from apps that are used for accessing building amenities and other common maintenance aspects.
Predictions on how Proptech will impact the market this 2019 are outlined by experts as below.
- Increase in ROI: Investors are already seeing the potential of using technology to improve returns on real estate projects and there will only be an upside to this notion. Hence venture capital will continue to flow into the segment.
- Improvements in Building Management: Building owners find it easy to manage day to day affairs through custom software and mobile apps. Adoption of technology in property management will only grow further.
- Technology partnerships will gain more focus: Barrier to entry is lowered in the real estate sector for techno-preneurs since expertise in the property domain alone will not help in building the right software. More and more real estate executives now understand the importance of using strong technology to build the right tools for improving costs and profitability for their organizations. In addition to real estate professionals, technology experts will help take the industry to greener pastures.
- AI to boost data tracking: Artificial intelligence will help property owners and occupiers pick out key trends and insights by tracking a huge exchange of data in real estate transactions.
- End user conveniences to get more popular: Last year, commercial building owners showed interest in apps for tenants that provide easy access to the building and a variety of in-building and local services. For instance, a tenant can book a spot in a fitness class offered by the landlord or order their meal from a restaurant. These types of apps will continue to gain traction in residential communities as well.