The evolution of technology in the real estate sector: PropTech 3.0

11/10/2019

The evolution of technology in the real estate sector: PropTech 3.0

The evolution of technology in the real estate sector: PropTech 3.0

Technology is increasingly present in the real estate industry and is constantly evolving. The PropTech concept joins property and technology together and has improved the real estate market by contributing added value in different areas such as:

  • Online leasing and purchasing.
  • Virtual reality during visits to properties.
  • Big Data solutions for managing large volumes of information.
  • Specific software for facilitating the management of properties.
  • Home automation for monitoring or managing installations and other items.

There is currently talk of PropTech 3.0, which is yet another leap in Real Estate. However, what does this new step forward mean?

The first generation of PropTech (PropTech 1.0) was basically focused on seeking property ownership options through the production of real estate market studies. These were sold to stakeholders in Real Estate and the information provided was based mainly on clients’ specific needs. Evolution in technology and the appearance of Fintech gave way to PropTech 2.0, which has integrated technology in different areas through the Internet of Things (IoT), one of the driving forces of change in the sector that encouraged aspects such as energy efficiency, sharing economy and smart construction.

The financial sector will continue to drive the evolution of the real estate sector. Blockchain, which is being exported to many industries as a secure and profitable method of creating and administrating a database that also makes it possible to keep records for digital transactions, is therefore giving way to a new generation: PropTech 3.0. Innovations in the financial sector are prompting the real estate sector to seek radical change in the transparency and fluidity of its operations with secure mechanisms with which to perform complete transactions remotely.

Concepts such as augmented reality, which is experiencing great success in the sector, Big Data technology , 3D printing and cryptocurrencies will continue to become more important and boost the new generation of PropTech. The blockchain revolution in the real estate sector will make it possible to draft contracts that identify, maintain and interchange properties using a mechanism known as Crypto Securitization. This is an intermediary-free process supervised by a distributed network that will validate transactions using blockchain technology with encrypted and legally binding digital certificates. It will make assets easily transferable and swiftly interchangeable for currencies or cryptocurrencies and thus reduce transaction costs.

Companies will automate processes and new tools will emerge to offer advanced recommendations to support investment decisions. According to the Proptech Report by University of Oxford’s Saïd Business School, evolution towards asset management and analysis will encourage Real Estate to offer more and more online services.

New technological times will continue to shape the management of processes in the sector to create better user experiences and thus increase return on projects and boost the performance of buildings.

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