10 Key Proptech Trends

Now more than ever, the real estate landscape is in a state of disruption.

A new generation of highly mobile tenants (think new work, voluntary simplicity and digital nomads) expect high quality, high tech living experiences. More short-term renters means more competition among providers to differentiate and offer that added value.

On top of all this, COVID19 and remote culture has accelerated the digitisation of conservative industries — a new wave of solutions have appeared on the market to help manage properties. Real estate is approaching “Industry 4.0”, a completely digital way of managing its entire process. As of March 2021, there were 477 PropTech companies in the DACH Region and growing (proptech.de). Read on for insight on 10 prominent trends and key players in this exciting space.

Search engines: These are the first step in the buyer journey, and perhaps the biggest change in the way buyers and sellers connect with each other. Online portals or “multi-sided marketplaces” have disrupted numerous industries — and real estate is no different. Platforms such as #Uber, #eBay, #Zalando & #AirBnB have changed the game when it comes to connecting providers and buyers. Crucially, these B2B2C companies require little capital — they don’t own the good or service they sell, and their core value comes in connecting demand with supply. Several players exist in the DACH real estate search engine sphere. With McMakler, property buyers and sellers can connect and interact with over 400 brokers. Nestpick serves as a kind of search engine for flat-hunters, who reach out to landlords on the platform. Wunderflats has the added feature of allowing tenants to pay for accommodation and create smart contracts in the app. Fypp is a meta search engine, combining listings from all these — with so many options, these comparison tools are a likely future trend in all areas of Proptech.

2. Virtual reality — associated with the gaming industry, VR has many applications in Proptech, the most well known being digital home viewings. Especially during a pandemic, many tenants wish to view properties virtually before visiting in person. They may wish to view them at times outside normal work hours, especially where different timezones are involved. This is where VR comes in. “Digital twin” software such as Matterport lets landlords create virtual reality 3D tours, where tenants can “explore” the apartment. In an increasingly international market, tenants may be overseas and unwilling to travel solely to view properties. VR helps offer services to a wider range of customers, and enhance convenience for both the provider and the buyer. VR is definitely one to watch in the evolving, international Proptech space.

src — Matterport

3. Legaltech: Opportunities for innovation exist in the overlap between legaltech and proptech. As more and more business is conducted online, the demand for apps which facilitate signing contracts and meeting legal requirements at a distance has grown significantly. The global digital signature market is expected to grow 26.3% annually from 2021 to 2027. Smart documentation software such as MemoMeister helps you organise all your project files in the cloud. We can expect to see a growth in user-friendly technology that keeps all files in the cloud — especially in the traditionally paper-heavy property space.

4. Remote management — Efficiently automating businesses processes, even in conservative industries, is the name of the game in 2021. PropStack lets brokers synchronize all data in one user-friendly interface. The cloud-based nature means different team members can access all information, regardless of location. Intelligent receivables management software such as Collenda helps manage claims and workflows, while ensuring good service for the customer. For busy landlords, there is growing demand for full property management services. Home.ht takes over all landlord tasks, from new letting to tenant support and rent collection. It also saves a lot of time from the tenant’s perspective — tenants can view, book and arrange moving in all within the app. With remote culture likely to stick around, remote management and outsourcing will be a growing trend.

src — PropStack

5. AI: AI is a hot topic in all areas of tech — and proptech has quickly caught up. Automated customer service bots which answer questions on behalf of the realtor, or even provide home tours, are expected to become commonplace in the future. [src] Homeday even offers an algorithm for valuing properties. In the future, we will see more and more complicated or tedious tasks taken over by AI. Not only does this free up the realtor’s time, it helps customers make faster and more informed decisions. In the future, it seems AI will take over more and more of the monotonous tasks, so employees can focus on dynamic areas which need a human touch — like strategy, customer relationship management, and innovation.

6. Automation: Automation has endless uses in the Proptech space. “Smart home” automation technologies appear to be a win-win solution. As short term tenants expect energy and bills to be bundled into the rent, the onus is on providers to find energy efficient solutions for their buildings. Keeping these operational costs low enables property owners to offer favourable rates to their tenants — a competitive advantage. IoT Proptech services provide a distributed service to easily and effectively manage this key component. Smart Home Berlin enables tenants to control lighting, ventilation and room temperature from their smartphone.

src — Smart Home

Which brings us to another prominent trend –

7. Sustainability: Controlling consumption and analysing data to see where energy is being lost is an added benefit for both tenant’s wallets, and the environment. Clearly, as eco-conscious Gen Z move into the workforce and rental spaces, we can expect increased attention to sustainability, particularly when it comes to technological solutions. Sustainable startups are springing up right, left and centre, catering for the ever-evolving needs of asset light, environmentally conscious consumers. Reco offers a sustainable furniture rental service, allowing landlords to benefit from short or long term rentals rather than buying. More globally, the organisation Prop Tech for Good is dedicated to technological innovation in line with achieving the UN sustainable goals. We are likely to see a move toward leasing, borrowing and sharing in the property space as the “uberisation” of assets continues.

8. CAFM: “computer aided facility management” is the umbrella term for any software which helps manage a property’s logistics more efficiently. Inventory management services such as Retrac keep track of all furniture. With its innovative QR code system, all you need to do is stick the barcodes to your inventory, and scan them to see repair history, notes, and maintenance needs. All this info is compiled in a convenient BI dashboard. The app even provides quality updates and alerts when items are likely to need repair or refurbishment, prolonging the product lifespan and helping managers to avoid emergency, expensive repairs. This smart, “predictive management” is another likely trend in CAFM.

9. Data-driven decision making — everyone knows data science is the future, and real estate is no exception. As we have seen, data analytics are increasingly used in identifying and predicting new market opportunities. Analytics platforms such as realxdata compile all your data and offers holistic insights and market analysis. The BI dashboard keeps track of all stats, saving users time they would have otherwise spent sourcing and crunching numbers. Finding creative ways to collate and visualize data in a digestible, actionable way will be a key area of opportunity in the future.

10. Security — Security and privacy are increasingly areas of concern for the tech industry. Cybersecurity, hacking, and fraud have long been issues — but even those with little interest in technology are aware of security risks in their home. New technology to ensure your building’s security is constantly evolving. LifeSmart IoT offers remote monitoring and intrusion alarms, smoke/leak detection, and video surveillance. All details can be monitored in the app, even remotely. Proptech has changed home security, and we’re sure to see more exciting developments in the next few years.

src — LifeSmart