You’ve heard of technology. You’ve heard of real estate. But have you seen the two terms combined? Yes, there is a word for the intermingling of technology and real estate; it’s called PropTech.
SO WHAT IS PROPTECH? WHY SHOULD WE CARE?
Like any technological advancement of the 21st century, PropTech exists because it wants to make traditional methods more modern and convenient. (in real estate).
PropTech leverages technology to digitalise the real estate industry. And we’re all for it! After all, IQI is synonymous with PropTech. Digitalisation is in our veins.
1. Digitalisation of Real Estate Practices
Out of Malaysia’s total population of 32.57 million people as of January 2021, 27.43 million are internet users. That is more than half of the total population.
These statistics show that Malaysians are highly technology-invested people, constantly relying on the internet and smartphones.
Thus, growing reliance and interest in technology is a fundamental factor of this. The combination of property and technology adds up to this.
PropTech optimises real estate practices. How people buy, sell, rent and manage a property is connected by a technological ecosystem encompassing a digital landscape.
Technologies that are driving PropTech include big data, artificial intelligence (AI), machine learning, virtual reality (VR), augmented reality (AR), the internet of things (IoT), 5G and blockchain. These aspects of PropTech are being experimented on across the globe.
2. PropTech Makes Use of Technology Trends
As PropTech slowly grows to become the norm of modern real estate businesses, take note of these trends and technologies!
- Big Data
The act of compiling and utilising data from various categories such as buying and selling trends, traffic, demographics, and consumer survey results for better insights.
- VR (Virtual Reality) and AR (Augmented Reality)
With virtual reality in the forefront, real estate companies can create live-virtual spaces of the property that they’re going to sell to potential customers.
- IoT (Internet of Things)
IoT (Internet of Things) refer to smart devices and appliances connected to the digital cloud. Moreover, IoT can help build smart houses that can help streamline maintenance.
5G is key to numerous technological advancements expected of PropTech because it will provide better wireless bandwidth for a more digitally-inspired ecosystem.
- Machine Learning and AI
In terms of AI, it may enable property sites to get a better understanding of preferences to make better suggestions for potential customers.
3. Convenience and Improved QOL (Quality of Life)
Technological innovation is the norm for all industries right now. As we live in the 21st century, change is inevitable.
Why is it important that the real estate industry keeps up with these changes? Because digitalisation isn’t only inevitable, it is necessary. With good reason, too.
PropTech aims to be more convenient, accessible and consumer-focused for all. Some pain points tackled include:
- Lack of Flexibility
- Community Scarcity
- Tedious Leasing and Payment Processing
However, it’s also worth noting that buying property is a very personal and special process. It isn’t like buying groceries or ordering take-out dinner.
There’s a certain human process and connection that is important in real estate salesmanship, and until we can incorporate that into PropTech, will we truly be able to explore the capabilities that it has to offer.