How the proptech Buzzword Changed the Real Estate Industry?
PropTech! The new buzzword everyone that has been talking about. What does PropTech mean? And how is it a threatening and welcoming inclusion in the industry? Know all of this and more in this article. So, grab your cup of coffee, and let’s begin.
The New Buzzword!
A couple of years ago, no one had heard of Proptech. Sure, some companies like Zillow in the US had been gearing up to disrupt the market but nothing global. These days the tides have shifted to a more digital approach to sales and marketing. This is where PropTech comes into play.
Proptech can be defined as a collective term used to define startups that offer technological advancements in the redundant and an obsolete business model of the real estate industry.
Proptech has close ties with FinTech (Finance & Banking) and MedTech (Medical), the financial and construction aspect of this emerging market.
The PropTech 1.0 revolution started with standalone PC software in the 90’s. Just as the spreadsheets killed off the Rolodex, the PC based software applications gave agents contact management, uploads to property portals (like Rightmove) and task management solutions.
PropTech 2.0 arrived in the late 90’s with the advent of cloud computing allowing large agents to utilise this technology and network dispirate branches.
PropTech 3.0 was no doubt helped by the smart phone revolution and consumers instant access to data of all shapes and sizes.
Which real estate market is being threatened the most?
Proptech is threatening all of the old business models of the real estate industry. From commercial real estate to development. Proptech reinvents all of these sectors.
New jobs relating to the real estate market are coming into sight. Like drone operators, virtual home staging specialists, data aggregators etcetera. All of these dynamics are forcing baiting innovators and entrepreneurs to come up with newer and better solutions to compete in the market.
Different categories of real estate startups
There are hundreds of new startups emerging in the industry as we speak. But most of them fall in either one of the following categories.
Startups offer a support system for realtors and real estate agencies.
Startups are aimed at replacing real estate professionals.
Therefore, stakes are higher for realtors. If they do not adapt to the changing tide, they might end up like Blockbuster after Netflix came along.