Property tech
Trends and innovations
The property and real estate industry is still a relatively traditional industry that has been slow to adopt modern technologies. But this is changing as the industry is undergoing a significant digital transformation. PropTech leveraging emerging technologies and impact various aspects of the industry.
The use of technology is broadly focused on two fronts, how to improve the client-tenant experience throughout the property lifecycle and how to make informed investment decisions within the industry. Technologies like artificial intelligence (AI), virtual reality (VR), augmented reality (AR), as well as the internet of things (IoT), are the major emerging property technology trends today.
The use of these technologies in real estate is still in its nascent stages, however, with rapid innovation taking place. This is an indication of the future growth and potential of this sector as well as the immense opportunities that lie ahead.
Impact of Property Technology Trends
AI is the biggest trend within property tech with many leveraging the technology to address different challenges. The next spot is taken by immersive technologies like VR and AR that are quickly becoming mainstream for touring properties. It is followed by the IoT; as the need for automation at homes and workplaces grows so does the speed of development of smarter IoT devices. Building management systems (BMS) are another technology that is widely being implemented in modern properties to manage all the different systems in a building.
Big Data and Analytics are next with property developers leveraging the power of data to make smarter investment decisions and understand their clients better. To further improve client relations development of cloud-based property and client management software is also a growing trend in the industry. Other trends include the use of blockchain applications such as smart contracts, online property aggregation as well as listing platforms, drones, and a growing emphasis on data security.
Artificial Intelligence
Many modern devices are being used in the real estate industry today. They provide a wide range of data that concern occupants, location, and more. Analyzing this data offers insights on trends in the property market, helps assess investment risks, and better understand buyer needs. To manually process this information is inefficient and time-consuming. This is where artificial intelligence (AI) is set to play an important role in the future of the real estate industry. AI not only processes vast sums of data being generated in real-time but also offers valuable insights from it. Using historical data, AI identifies trends in the property market and provides realistic valuations. It also helps understand customer needs and recommend suitable properties, thus improving their overall purchase experience. Real estate agents are also using AIbased chatbots and assistants to stay connected with their clients round-the-clock and address their queries accurately. Make buildings more sustainable by improving their longevity using AI technology.
Again X software-as-a-service (SaaS)-based asset management platform that uses its proprietary AI-generated parameters for building monitoring. Some of the key parameters include equipment conditions, material quality, toxic material, and more. This information is used to predict maintenance-related issues in advance so that steps are taken to address them. This helps maintain equipment more efficiently and improve building longevity in the long run.
Immersive Technologies
Property investment is one of the major investments that people make in their lifetime. Thus it is still standard practice for people to tour multiple properties to find that ideal match. But this is a tedious process with various limitations like time, location access, and most recently the advent of COVID-19. To tackle these limitations and to improve buyer experience, the use of VR and AR technology has risen as a key property technology trend in the industry. Many real estate firms now offer virtual tours of their properties to prospective clients. This allows clients to tour multiple properties in a short time from anywhere in the world.
Similarly, the use of AR to stage properties for clients is also widely practiced today. Based on individual tastes real estate agents show different furniture setups to different clients which helps them envision how their future property will look like. These technologies make the buyer experience more immersive and also help agents convert potential sales into actual sales more swiftly.
Augmented reality technology enhance client experience while looking for properties to buy. The RealAR app uses floor plans to create visuals that are projected on the actual space and are then seen by buyers on their phones and tablets. This helps property buyers visualize how a property will look as per their individual tastes and assists them in making more informed purchase decisions.
Internet of Things
We are living in a digital age where convenience and quick access to information is a top priority. The use of various types of IoT devices and sensors facilitates this. For example, voice and speech recognition sensors in virtual assistant devices help them communicate with people and control other smart devices within a home or workplace. IoT devices like cameras and motion detectors also help monitor the physical environment of a building and keep it secure from unwanted access or activities. IoT sensors are now being used in all types of systems within a building from water pressure monitoring to electricity usage monitoring and more. The data collected from all these sensors monitoring different aspects of the property is used to create a digital twin for it. Digital twins of buildings don’t just give an overview of building functions but are also used to control these functions.
Infogrid IoT platform combining modern sensor technology with artificial intelligence and infographics. The platform collects data from its sensors embedded in the building like air quality, water usage, temperature, and more and uses it to monitor different resources in it. This real-time monitoring helps make the property more secure as well as helps reduce the cost of maintenance and energy usage to further drive sustainability.
Building Management Systems
Many daily chores that people perform at their homes and workplace from adjusting lighting and temperature to managing their space efficiently can be automated. These processes use sensors and smart building management systems to make the lives of people easier. BMS controls various systems within a building like HVAC (heating, ventilation & air conditioning) and Energy Management systems. It senses the ambient temperature of a space and, based on the tenant schedule, adjusts the temperature automatically before they arrive.
Another important use of BMS is in the efficient management of space, especially in commercial buildings. Based on the foot traffic in a building it identifies spaces where people are working from. This information is crucial post-pandemic as it helps reduce congestion and maintain social distancing norms at the workplace. BMS also uses occupancy data for efficient distribution of energy within a building resulting in lower electricity consumption.
Pinestack software solution manage different systems in a modern building. The software collects data from various sources in a property to create a digital twin. This digital twin not only monitors different building systems but also assists in asset management, building navigation, analytics, and more. Pinestack workspace app also easy integrate capabilities to further leverage maximum operational effectiveness in a buildings.
Big Data & Analytics
Big data analytics, a growing property technology trend, is used on real estate market-related data by firms to identify suitable properties for investments. These real estate firms as a result are able to help their clients identify properties that meet their specific needs. Some clients want a house in a locality with easy access to their workplace or school for their kids and so forth. Such a personalized service also allows real estate agents to maintain lasting relations with their clients and improve overall business performance.
Big data analytics has another unique utility within the real estate industry, in building information modeling (BIM). Data collected from various sources help create 3D models of buildings, BIM, which are then used for property maintenance, construction, and other purposes.
Actionable real estate data to create 3D property models. Rockestate calculate multiple types of data from addresses to advanced building characteristics which are then used to create virtual property models and offer insights. Some of these insights include flood and other risk analysis, roof analysis for future modifications, reconstruction value estimation, and actual property value to name a few. This data is used by real estate firms to better understand properties as per client specifications and also for investment purposes.
Property Management Software
When it comes to property, there are many documentation and compliance aspects that property agents, owners, and tenants have to deal with. Many cloud-based customer relationship management (CRM) platforms for real estate firms and agents. These CRM platforms help agents keep track of their clients and ongoing deals as well as keep related documentation secure. Being cloudbased, these platforms are easily accessible, making important data available when needed. Cloud technology is also enabling property as a service (P-a-a-S) platforms that take a customer-focused approach so that tenants use the building space and services as per the requirements. There are various other types of software being developed addressing insurance management, accounting, and more. But another property software gaining popularity is tenant experience platforms. They create a dedicated line of communication between the owners and tenants. From rent reminders and payments to maintenance complaints and booking of public spaces, these platforms enable full connectivity.
Leveraging web-based software technology to assist property managers and landlords. Property management software automates receipts and payments, email communication between tenants and landlords as well as offers user-initiated text messages. Some other features include account management capabilities for landlords as well as lease management and a complaints portal for tenants. Ezen’s software allows property managers to effectively manage multiple tenant accounts and properties while also creating a link of communication between them and their tenants.
Blockchain
The majority of property-related transactions still involve various third parties like banks and agents as well as a lot of paper documentation. The other key challenge for the real estate industry today is the rising property prices. Younger generations are less likely to invest in real estate today as it is not affordable for them. Blockchain as a property technology trend is addressing these challenges in a number of ways. Smart contracts are blockchain-based contracts that store property transaction data and are signed digitally when the buyer-seller conditions are met. It removes the need for 3rd party involvement and paper documentation while also making the whole process more transparent and secure. Another rising blockchain application within real estate is tokenisation. Tokenisation enables people to invest small sums of money in real estate in the form of tokens. This has led to real estate investments becoming more accessible and will further incentivize people to invest in them.
Blockchain technology to democratise access to real estate assets. Dyvare AI-based smart contracts that remove the need for any middlemen during real estate transactions. They also have the ability to tokenise commercial and residential property units. These tokens are traded on decentralised exchange platform enabling clients to get a seamless property investment experience. Other features like big data analytics to match potential buyers with sellers are also amongst Dyvare’s offerings. This is not just making the entire property buying process more accessible but is also making it more transparent and secure.
Property Aggregation Platforms
In the last decade, the buying experience for people has shifted online. However, the real estate industry has been slow to catch up due to the personal and high-value nature of its transactions. But that has been changing especially since COVID-19, with the advent of online property aggregation and listing platforms as a major property technology trend. Many real estate firms today have an online presence where they list properties on their portfolio for their clients to view.
Also, aggregate property listing from different sources to be viewed on their platforms. They offer solutions for various use cases from buying and selling property to renting them out. Apart from these, there are other specialized online platforms like real estate crowdfunding and co-investing platforms. These enable people to invest small sums of money in real estate during this time of soaring property prices.
Reducing the cost of homeownership with the help of co-investing platform. Zeehaus enables its clients to apply for funding their house on its platform. Once a suitable investor is identified, the house is purchased under the ownership of a trust where both the homebuyer and the investor are trustees. The occupancy rights of the property are solely held by the homebuyer and the investor is paid monthly rent on his investment. The biggest upside here is that as the property appreciates in value both parties get the rewards. While the investor gets monthly returns on his investment the homebuyer does not have to take out any mortgages.
Drones
Before buying or investing people tend to examine the whole property thoroughly from different perspectives. This is to make certain they are getting what they want both in terms of utility and aesthetics. But to view a property from these different perspectives was not always possible. This is changing thanks to the introduction of drone technology in the real estate industry. Drones now allow prospective buyers to view properties they are interested in from an aerial perspective. This is making the overall property buying experience more engaging as well as ensuring buyers make more informed decisions. Another important use case for drones in the real estate industry is for property maintenance. Smaller drones can fly and reach places where normally people cannot, to check for flaws, for example. This allows for monitoring commercial as well as residential properties more effectively and making sure that their structural integrity is maintained.
Using drone technology to provide services to the real estate industry. Lib-Drone is the drone arm of the LibelLab business. It offers services such as aerial photography, aerial videos, and aerial virtual tours. To create these virtual tours they use drones with 360-degree cameras and link photos taken by them. These virtual tours enable clients to look at properties in much more detail and help them project themselves in the space without even being there. This also makes their overall property buying experience more interactive.
Data Security
From earlier trends, it is evident that despite the property industry being traditional in nature, it is transitioning towards new technologies. These new technologies have led to the creation of large amounts of data, which is only expected to increase. This leads to a new challenge within the industry of how to secure all this data. From personal data about residents being collected by smart devices to sensitive property documentation and transactional data – all need protection. Government regulations on data collection and use are one way of addressing these challenges but they are not enough. Software solutions to monitor cyberattacks on buildings, encrypt data collected by IoT devices, and more. Blockchain is also playing a part by keeping property-related data secure in the form of tamper-proof blocks of code. This is a relatively new challenge within real estate and is a trend that is expected to gain a lot more prominence in the coming years.
Providing cyber security solutions for the real estate industry. 360 PropSecure makes buildings more secure. It includes a cyber risk assessment of the building and a SaaS-based continuous monitoring system. Some of its security features include vulnerability management, secure remote access to various systems, data backups, device security, and more. This system provides multiple layers of security to the existing building systems with a single point of visibility so that it can easily be operated by the security staff.