By now, it’s well-known that the pre-pandemic and post-pandemic scenarios have stark differences in nearly every aspect – be it our individual lives or from the business perspective of any industry. The real estate sector is no exception. As technology advanced with accelerated adoption amid the pandemic, there have been tectonic shifts in the real estate space globally, including in the Indian market. Within the sector, there is one subset that has gained much traction – PropTech (Property Technology).
The rise of PropTech
In the simplest terms, PropTech is the digital transformation of the real estate industry. With customer expectations dramatically evolving, the PropTech industry, too, much like other verticals, has adapted to the changing times.
With the latest technologies like Artificial Intelligence, Machine Learning, the Internet of Things, and Data Analytics, PropTech companies have streamlined their operations and enhanced efficiency to provide customers with an impeccable experience. These technologies make everything bigger, better, and faster for everyone in the industry – be it builders, developers, renters, real estate agents, or house owners. However, the aforementioned aren’t the only ones in the tech space that are revolutionising the industry.
A whole new world with leading-edge tech
Anyone who stays even slightly updated about the latest technological advancements would be aware that there are a couple of buzzwords in the space that has organisations and tech enthusiasts hooked – The Metaverse and Web 3.0.
The Metaverse and Web 3.0: Game-changers in the PropTech space
Alongside features like property search and services like interior design, construction technology, and property management being powered by technology, new-age tech, including the Metaverse, Web 3.0, and Blockchain, have gained much traction. More and more real estate and PropTech players are realising the goldmine of potential they offer and integrating them into their businesses. Given that such leading-edge technologies will take efficiency and customer experience to a new level, it’s safe to say that they are the disrupting factors in the PropTech landscape we can expect to see in the coming months/years.
For instance, real estate in the Metaverse is a virtual ecosystem where users can interact with each other, buy, and sell a unique, non-replicable piece of digital land via cryptocurrencies and digital wallets. These are similar to the property/land purchases customers make in the physical world. However, they are recorded as tradable digital assets by leveraging Blockchain technology, which, in a nutshell, is a digitised record-keeping technology that facilitates transactions in real-time across a network of computers. In fact, several corporates and retail behemoths are quickly catching up to this trend.
Virtual home tours and smart personalisation
With accelerated digitisation and changing customer expectations, virtual tours are gradually becoming part and parcel of the real estate industry and one of the main trends in the PropTech space this year. While virtual tours gained much traction at the outset of the pandemic, we can undoubtedly expect to see greater adoption of virtual tours given the convenience and seamless experience they offer customers. For realtors and PropTech/real estate platforms, virtual tours will serve as a handy tool to ensure business continuity in the future, even if there is an unprecedented event.
Apart from this, there’s AI integration in PropTech, which is not a new concept. However, AI, too, has evolved over the years. Today, with AI tools and algorithms, realtors can easily garner actionable insights regarding existing and potential customers through social media platforms and real estate/PropTech websites. Leveraging this, they can provide a personalised experience to customers, increasing their prospects of sales conversions and customer satisfaction.
Furthermore, with PropTech platforms, it’s a win-win situation for all players involved - be it builders, homeowners, or customers. With the help of these platforms, users can filter thousands of options as per their choice. It not only makes the process more convenient for customers but also proves to be an economically suitable option for the industry players, in comparison to the search engines.
The Millennials & GenZ Effect
Today’s younger generation is not only very hands-on with tech trends but also believes in early investments which have influenced the PropTech segment in several ways. For instance, millennials and GenZ are far more tech-savvy than any other generation, and their requirements vary from older generations where convenience and a digital-first approach take precedence over other aspects for them. Real estate and PropTech players have had to go the extra mile to cater to the new-age expectations.
Besides this, the younger generation of customers also gives importance to factors like sustainability. PropTech platforms, builders, architects, and realtors are leaving no stone unturned to ensure that homes are eco-friendlier. In general, the looming threat of climate change and global warming have pushed businesses and people to rethink their choices and consciously live/function more sustainably.
Summing up
In 2020, the PropTech industry secured a colossal USD 551 million in investments, surpassing the previous years’ despite the pandemic. With the advent and integration of cutting-edge technology, the industry will only continue to grow further. While they are yet to gain a stronghold in the domestic market, we can be certain that they will provide a myriad of opportunities in the PropTech sector, where the winds of change are already blowing.