Just like it sounds, PropTech is a combination of the words “property” and “technology” and is exactly that. PropTech refers to technological innovations and services that assist the real estate, mortgage, and insurance industries or just property owners in general. This includes anything from software to innovative materials (think smart homes), to solar panels.
Why is PropTech Important to Real Estate and Lending Professionals?
The data real estate industry professionals use to find and connect with potential clients, the software used to look for detailed property information (so you don’t have to drive to the office of every record keeper), the software used to advertise your services, it’s all PropTech and it’s all become exceedingly necessary to stay in business.
Meanwhile, real estate investors are looking at PropTech as an untapped market with huge opportunities, too. Landlords and other property owners can utilize PropTech to better manage their revenues and increase both top- and bottom-line gains. Even parts of the cryptocurrency market can be considered PropTech and are proving extremely useful for improving property management efficiency. Just check out this article by Forbes that discusses all of this.
How Much is PropTech Growing?
- 58 percent of respondents from real estate companies have a digital strategy in place, which is an increase from previous years.
- 4/10 is how respondents rated their level of system integration (on average).
- 95 percent of real estate companies have someone responsible for leading digital innovation.
These are just a few of the stats mentioned, but from this alone we can see that while many companies desire a way to integrate more technologies to increase efficiencies, not many have or not many companies have seen much of a transformation.
A slightly older survey from KPMG highlights a few stats such as 97 percent of those surveyed agree that digital and technological innovations will affect business, but 66 percent do not have a clear strategy for technological integration. It also discusses some of the “biggest industry pain points” that PropTech could help resolve, such as:
- Building Management
- Data Management
- Performance Measurement and Tracking
- Customer Experience
- And others
PropTech is Important to Your Business
PropTech is becoming increasingly necessary for real estate businesses to remain competitive in today’s ever-evolving technology-fueled world, and it can help you make an in-depth analysis of the marketplace. While the vast majority of real estate professionals can agree on this, there is still a lot of room for integration and growth. If you’re looking to improve efficiency by integrating more PropTech, our data solutions may be exactly what you’re looking for. From analytics to property transaction data, portfolio analysis, and court record data, to modules and data systems like RE Records Search, there are plenty of options for introducing new PropTech to help with data management. Reach out to a specialist today to discuss how we can help you be more efficient with a plan that works with your individual needs.