Over the past several years, Proptech has contributed significantly to the modernization of the commercial real estate industry (CRE). This rapid adoption of Proptech is an indicator of a greater alignment between emerging technology and the industry’s digital transformation.
What Is Proptech?
Proptech, or property technology, are the tech tools real estate experts use to optimize their organizational processes. These innovative technologies are also known as CRE Tech, Real Estate Tech, or Realtech. However, at its core, Proptech is an alignment between the real estate industry and technology.
Proptech disruption has brought innovation into the daily routine of almost every player in the Real Estate industry, including real estate developers, property managers, investors, landlords, tenants, brokers, and individuals looking to buy, sell or rent real property.
Some examples of Protech in the real estate industry include cloud-based software technologies and platforms, AI (Artificial Intelligence), Drone or remote access technology, investment platforms, and property management platforms for running, leasing and marketing residential, office and retail properties.
Proptech continues to revolutionize the CRE industry in several ways; here are just a few that relate specifically to real estate development:
Data collection, analytics are game changers
Thanks to technological innovations, it is now possible to not only collect large amounts of data, but, and arguably more importantly, also turn that data into actionable information.
In order to make the best decisions possible, end-users need access to data analytics tools, which allow them to learn about current market trends and make more accurate forecasts. Data will reveal trends, identify pain points and triangulate on specific goals more accurately.
Granular data analysis helps real estate developers to better predict where it is best to build a new building and what amenities would fit the potential residents.
By applying deep data analytics to CRE, better investment choices can be made and can produce more accurate forecasts, leading to improved decision making and visibility across the entire CRE spectrum.
Proptech keeps project costs down
In the CRE industry, developers are very dependent on project budgeting software.
Budgeting and cost control will ultimately determine the financial success or failure of a project. Protech has provided developers with tools that go way beyond a simple spreadsheet to more accurately forecast and control project budgets.
The best solutions in this space understand the workflow and give the development perspective as much attention as the financial perspective. A state-of-the-art solution allows the software to be fully aware, with each part of the software providing the necessary project perspective to complement the general ledger perspective.
Proptech provides technological advantages
85% of companies that implement Proptech solutions improve their real estate business operations and deliver higher-quality customer services. By combining the data and analytics, along with better cost and project control, developers can make better informed decisions, identifying opportunities and growing profits. Proptech will Improve productivity and enhance workflows ultimately resulting a technological advantage over competitors.
Adopting Proptech is essential for businesses as they have to embrace new digital transformation capabilities and evolve their business.