PropTech has brought in a radical shift in consumer experience and construction development. Thanks to technology advancements and their adoption, the real estate industry is reinventing business models and revolutionizing like never before. By leveraging PropTech, the industry is becoming future-ready.
What is PropTech?
PropTech refers to an innovative approach adopted by the real estate industry wherein it uses latest technologies to optimize the way people research, rent, buy, sell, and manage properties. The integration of cross-industry technologies brings large-scale benefits to all the parties involved – developers, investors, and property management companies. Technological infusion also enhances customer experience. Smart buildings are one of the direct outcomes of the increasing adoption of Proptech by the real-estate industry.
The benefits of this change are huge and that’s why the global markets are witnessing it at a large-scale. The Covid pandemic has also given PropTech a big push. The real-estate industry is witnessing a lot of technology infusion in the form of Building Information Modelling, Artificial Intelligence, Machine Learning, Internet of Things, Augmented and Virtual Reality, Fintech and Crowdfunding, Big data and Blockchain. The use of technology is happening at different stages of project execution. This increased use of technology is enabling the real-estate business to move forward with real time data insights, leading to more informed decisions at all stages of property management.
As the industry inclines more towards Proptech, investments in the segment will see a rise.
The Rising PropTech Industry
PropTech companies are efficiently addressing the pain points of the real-estate industry by introducing innovations into each step of the processes and revitalizing the existing systems. According to the KPMG Global PropTech Survey, the digitally-driven PropTech industry has made considerable progress over the past several years. The findings of the research are very encouraging. According to it, 58%of the real-estate business has already embraced some digital innovations and there are about 6 US PropTech startups for every one million people.
As per a recent research conducted by Deloitte, the US leads in the presence of PropTech companies, followed by Europe. PropTech is definitely going places!
Increased adoption of Proptech has led to the emergence of smart buildings. The use of interconnected technologies to make buildings more responsive, sustainable and productive is the baseline for smart buildings. These buildings along with contributing to energy efficiency and automated detection of anomalies in the building infrastructure, aid in prediction of maintenance requirements. A research by Research and Markets indicate that by 2023, the global IoT smart building market will reach $51B USD globally. A part of this IoT smart building market will be powered by Artificial Intelligence (AI) technologies, about 33%.
Data Driven Services for Building Optimization
As the concept of smart buildings gain momentum, high-quality data driven services that could effectively solve tough building problems would be the need of the hour. The companies offering such services, by utilizing data from existing control systems, should be able to implement cloud-based analytics to identify, diagnose, and develop reports on potential building performance and service issues. Preventative maintenance plans based on the analytics would allow the building design stakeholders to identify and correct equipment issues and improve the buildings’ performance and overall efficiency.
It is quite evident from the discussion above that the real estate industry can no more ignore the adoption of the latest PropTech. This is necessary if the companies are looking at growing their business at full scale. Concepts like smart buildings are becoming popular, and accordingly building service & solution providers have to hone their capabilities to make impact. Deep domain knowledge, vast experience in engineering & building management services and an innovative mindset remain the key driving factors for the service providers to match up to the new standards in PropTech & AEC.
Also Read: Digital Twins: Promising Excellence in AEC