Smartphones? Check. Smart TVs? Check. Smart Homes? Check. Smart Cities? Check.
In an increasingly crowded and intricate urban landscape, the demand for inventive and effective problem-solving has reached new heights. The concept of smart cities which once seemed a distant and imaginative idea, is now taking shape as a solution that utilises cutting-edge technology to enhance infrastructure, services, resource management and property development.
The difference between a city and a smart city, apart from the adjective, is the convergence of artificial intelligence (AI) and the Internet of Things (IoT). This dynamic pairing of advanced technologies is revolutionising our lifestyle and the manner in which we engage with our urban environment. While AI and IoT are making their permanent mark in the fields of property development and construction, there is a new champion that is making noise and it goes by the name of ‘PropTech’.
Getting to know proptech
Proptech (the counterpart of contech: construction technology and fintech: financial technology), an abbreviation for property technology, encompasses a broad spectrum of digital solutions used by professionals in the real estate field to simplify and improve processes such as property transactions, development and investments.
Proptech holds significant importance for the real estate sector due to its ability to connect the physical and digital realms seamlessly. In today’s context, it’s become commonplace to turn to the internet to organise property viewings. Proptech platforms enable real estate firms to provide virtual property tours, conduct property management tasks online, and even employ drones for property surveys. This integration of technology is contributing to enhancing accessibility, transparency, and efficiency within the real estate industry.
For example, these solutions can include customer relationship management (CRM) systems tailored for real estate brokerages, tools designed for efficient property management, devices for home automation, and platforms that aid in investment management.
These innovative technologies may also be referred to as Real Estate Tech, Realtech, or Commercial Real Estate (CRE) Tech, depending on the perspective. However, at its essence, proptech represents a powerful fusion of real estate practices and technological advancements.
Noteworthy instances of transformative technology within real estate include investment platforms that connect retail or commercial real estate investors with suitable properties. Additionally, there are property management systems developed to oversee various types of real estate assets, such as single-family homes, apartment complexes, offices, and retail spaces. However, if this seems like just a jargon dump for someone owing to the fact that the idea of proptech may be perceived as distant from the everyday consumer, think about your most recent vacation experience. Perhaps the one where you stayed in a charming Airbnb apartment or a boutique hotel. Try to recall how you selected that particular lodging from a multitude of appealing options presented on the platform, often at more budget-friendly rates compared to nearby hotels. If you can relate to this scenario, you have directly observed the profound influence of technology on the real estate and property development landscape.
Proptech redefining smart city living
On a global scale, the Proptech market is anticipated to maintain its upward growth pattern, with an estimated compound annual growth rate (CAGR) of nearly 17% by the year 2031. This growth is primarily propelled by the rising need for cost-effective housing solutions in urban regions.
