“What” is Proptech

We live in the age of automation, of blockchain and of virtual reality; these digital innovations could not leave untouched the way we rent, buy and build properties.

Proptech has become a thing in the last few years, after the appearance of the first startups (based in the US) specialized in this field. However, defining “Proptech” as the bare application of few technological tools to the real estate market, is a little bit too diminutive; Protech should be considered as a new philosophy, a new way to interpret the old property market taking into account all those relations between vendors, builders, intermediaries, agents and the actual goods, such as land, buildings and apartments.

“Where” is Proptech

Proptech does not only exist in the real estate market “per se”, but embraces many other fields more or less connected to it. An example isare the smart building and cities, the sharing economy (applied to the real estate industry), the finance and, lastly, the retail industry. In its business model, it’s also possible to include the co-working trends (reshaping the public spaces), the co-living businesses (offering solutions in the residential market), the crowd-funding ideas (in regards to investments) and to the home-sharing approaches (helping people finding short-period and transitioning living solutions).

“Who” is Proptech

Along with the Proptech growth, new jobs and careers emerged; sometimes these new roles nicely integrate with existing professions while, other times, they destabilize them. An example of those who have been deeply affected are the canonical real estate agents; or the drone pilots, who can map an entire land without being an official surveyor; engineers, half construction engineers and half software engineers. They can help customers virtually visit a property, even before it is being built!

“Why” Proptech?

What are the benefits of the digitalisation of the property industry? Why do we need it?
With the adoption of digital techs (e.g. big data and blockchains) property transactions have become much more transparent and every party involved in the process of an acquisition (or a sale) has almost instant access to the status of their affair.

Another benefit is that, with the introduction of online rental platforms, the administrative process of putting in contact landlords and tenants have undoubtedly received a huge advantage; properties can receive greater exposure and visibility, with the result of experiencing reducing vacancies.

More examples can be found within the map modernizations; nowadays AI is capable of quickly (and accurately) census vast areas. The geo-localisation of a property enables to better estimate its potential value in regards toof its position and to forecast a possible price for a future sale.

These and many other benefits are pushing entrepreneurs and innovators to consider investing more and more in the Proptech field and to create startups capable of responding to everyone's needs. Moreover, despite the Proptech scene appears strong and established, someone believes it’s still in its embryonal state, destined to evolve much more thanks to its great potential.