PropTech is coined from Property Technology, and it is the collective term used to describe all of the tech innovations currently taking over the real estate industry.
As with Fintech, the future is bright in the real estate industry with the tech solutions that PropTech founders and co-founders are bringing to the table. It’s also very hard to predict because of many factors including;
- Number of traditional real estate companies already existing
- Cost of investment in real estate
There’s a lot of work to get done before people begin to feel its impact, but its effects are as game changing as the Fintech disruption we are currently witnessing. PropTech is already starting to make its presence felt in both the residential and commercial property worlds, and like all other disruptive technology waves, the future is nearer than you might think.
How does PropTech work in principle?
Being a tech solution to the real estate problem, it involves the creation of websites, mobile apps, or web apps offering units of investment or outright sale of landed property to all. Units in conventional real estate would normally refer to land, buildings, or a block of buildings. Sometimes, even a single apartment.
PropTech companies offer different kinds of equity (a percentage of the earnings from a landed property over a stipulated time), or non-conventional units such as a room in an apartment. Companies like MyyInvest offer such units like the latter with return on investment that would turn heads.
This is the basic principle of PropTech operations, and why it’s such a revolutionary way of doing real estate.
There are a lot of offerings that PropTech has for customers, some already out there, and some that could become a thing in the future. For example, virtual tours of properties could become a thing. Virtual (A.I.) realtors could also become a thing.
There’s a world of possibilities with PropTech in the real estate space.
PropTech pros and cons
PROS
- Easy access to real estate investment for people who wouldn’t ordinarily afford it.
- Digitally monitor all assets.
- Tenants can find good landlords, and vice versa to prevent any future issues.
- Little or no need to visit real estate sites before investing or purchasing.
CONS
- Not easily accessible to the unbanked.
- Not easily accessible to the people who are not formally educated.
PropTech is a timely solution for people who would like to do real estate business without the hassles of back and forth negotiations with agents. It’s also a great way to tackle one of the world’s largest industries and enjoy all the benefits it has to offer.
Get on board with PropTech today.
