PropTech: The digital transformation of the real estate industry

Digitization  does not leave any industry unscathed. The real estate industry also benefits from corresponding solutions. The term "PropTech" has become established. This article shows what is meant by this, what PropTech looks like in practice and what the outlook for the future looks like.

‍

What does "PropTech" mean?

PropTech is the short form for "PropertyTechnology" – this already gets to the bottom of the meaning. The new term stands for modern technological developments in the real estate industry. In times of digitalization, one often stumbles across corresponding terms – for example, "FinTech" for innovations in the financial sector.

Strictly speaking, a PropTech is a startup that offers digital solutions for real estate. In doing so, they are revolutionizing the industry and providing contemporary, practical and innovative products and services.

As the technical possibilities become more and more extensive, there are more and more such business models. The goals are manifold: From climate-friendly design of real estate to convenient management via the cloud to convenient viewings in virtual space, everything is possible.

By the way: In English-speaking countries, people talk less often about "PropTech" than about "Real Estate Technology". However, what is meant is one and the same.

‍

PropTech applications in practice

Digital solutions are in high demand in every area of life –including the real estate industry. The areas of application of PropTechare therefore very extensive.

Virtual Reality

Virtual reality is very much in vogue. How do PropTech startups take advantage of this technology? One example is virtual tours of houses and apartments. This takes the pressure off landlords and tenants, as well as buyers and sellers. Many more viewings are possible within a short time. Those who are still interested in buying or renting after that can make another appointment on site.

Virtual reality is particularly exciting for people who want to view properties that have not yet been built. The digital design gives you a lively impression, although in reality only the floor plan exists.

To ensure that virtual tours are really high-quality, there are PropTech companies that specialize in them.

‍

Internet of Things / Smart Building

Most people are familiar with the smart home. These are technologies that network one's own home. The systems are also referred to as products of the Internet of Things. But it goes even further: Smart Home was only the preliminary stage – today the Smart Building  is being discussed!

Nowadays, real estate is full of innovative technologies that make living, working and living more pleasant, climate-friendly and efficient. PropTech technologies can be found in various areas:

• Vents
• Firings
• Lights
• Water
• Current
• Safety

Heaters, for example, can be controlled particularly efficiently to always create the optimal temperature in living or working spaces. In addition, this contributes to a climate-friendly use of the property. PropTech thus also promotes the sustainability of buildings. At the same time, users can save costs.

When  it comes to security, electronic locking systems offer great advantages. PropTech companies such as BlueID offer high-quality, secure and convenient access solutions that are suitable for apartment buildings as well as office buildings. With the help of transponders or key cards, authorized persons can gain access quickly and conveniently, while everyone else has to stay outside. In the event of loss of keys, it is not possible to replace the entire system – the authorizations of each RFID chip can be easily adjusted in software. There are also systems that allow access by fingerprint or iris scan. It is practical that electronic locking systems can be combined with a working time recording system – so companies benefit from several advantages at once.

‍

Digital networking of construction projects

Construction projects involve many stakeholders. From architects and engineers to tilers, bricklayers, roofers, electricians, and plumbers, everything needs to be well planned for effective collaboration.

Smart digital networking can lead to an optimization of processes. All participants are optimally networked with each other, so that errors can be avoided and costs and hassle can be saved. PropTech solutions make all of this possible.

The future of the real estate industry: an outlook on PropTech

New, innovative business models are conquering the real estate market. Building owners and users want it to be easier, more convenient, more efficient and more practical. Digital solutions come in handy.

Even though there is already a wealth of digital solutions that PropTech makes possible today, we are far from having reached the end of the possibilities. As the needs of users continue to increase and digital technologies continue to evolve, it is expected that a number of more practical products and services will be launched in the future.

Artificial intelligence, augmented reality, Internet of Things, virtual reality – the list is long. Many innovations are only in the starting blocks. The real estate industry can already benefit from these thanks to PropTech companies. It only remains to be seen what time will bring.

PropTech is basically already a must today: Digital solutions are not only in high demand, but also appear very attractive to most users. Anyone working in the real estate industry should therefore not refrain  from taking advantage of the available technologies. Those who rely on the innovations of tomorrow today will be able to design buildings as efficiently, sustainably and practically as possible in the future.

‍

Conclusion

PropTech is more than contemporary. The real estate industry is also becoming digital, as the potential and demand are immense. Companies like BlueID are leading the way. PropTech solutions are used in many areas : from house construction to lighting and heating to secure access.