“PropTech” is a current scaffolding in the commercial real estate sector. As “FinTech” (“Finance + Technology”), PropTech is a movement in the real estate market towards efficient systems based on the exploration of the digital landscape and the trend towards new consumption models of interest to developers, investors, and property managers in them for developing it.
What is PropTech?
Proptech is an innovative approach to the real estate industry, where technology is the best way for people to search, rent, buy, sell and manage properties. All parties involved – developers, investors, and property managers – benefit from cross-sector technology and are therefore a current buzzword in the commercial real estate sector. PropTech’s real estate start-ups are all those who want to orient themselves in the real estate sector (especially in very dense urban areas) in a better, more efficient, and easier way for all those involved. Unsurprisingly, New York is leading this emerging industry with so many real estate problems and a lack of accessibility and housing. The rise of this industry takes into account the need for technological and mental change. real estate sector to alleviate the inconvenience of its consumers.
The PropTech sector
Real estate is the largest asset class in the United States, so new trends are constantly emerging in the sector. From coworking to coliving, the real estate market is innovating and shaping its efforts to meet demand. The PropTech sector has grown strongly since 2014. Venture capital investments started at $ 186 million worldwide in 2011 and climbed to $ 2.67 billion in 2016 and $ 12 billion in 2017, according to a report by RE: Tech. MetaProp’s 2018 Proptech Mid-Year Global Confidence Index recently found that “96% of investors plan to make the same or more investments in the next 12 months; this is a 76% increase over the previous year. Interestingly, a growing percentage of this investment is flowing into growing companies.
Why develop PropTech?
Technological innovations have revolutionized many other sectors. Take a look at Uber, Airbnb, Opendoor, Seamless … I could go on. The same benefits – optimized efficiency, better customer experience, simpler processes – can and should be seen in the real estate industry. Traditional properties have some problems:
No price (limited offer)
Manual and tedious rental and payment processes
Lack of flexibility
Lack of community
With PropTech, companies strive to solve these problems and introduce an innovative advantage at each stage and revitalize existing systems.
How common real estate technology is changing
Common is one of those companies that uses and develops new proprietary PropTechs. Although Common is not considered a startup, we are unique in that we use it in our processes and develop cutting-edge technologies through our in-house development team. . These technologies allow us to improve the efficiency of the real estate market, improve our members’ rental experience and equip our staff to become better owners. Examples of PropTech we use:
HelloRented or Obligor (for guaranteed rent + no deposit)
Online ticketing system for all property-related matters
Connect via the shared app (RSVP event, directory, live chat, perks)
Virtual tour (Matterport)
Document for the signing of lease agreements