If you Google ‘PropTech’ you will find that there are dozens of definitions. Major players in the PropTech, or synonymously used CRETech, space even have their own explanations of what they think it really is. All things considered, PropTech is simply a term that describes a small piece of a large puzzle that can be defined as a large digital transformation in real estate technology. Over the last few years, PropTech startup companies in the real estate space have been able offer new products that will ultimately change the way business models are formed when it comes to property management and investing.
On the contrary, PropTech has also enabled groups of small investors, who, in the past, could not pay to play, to invest in attractive real estate projects. Also known as ‘crowdfunding’, this alternative investment option allows these small investors to drive up capital funds in portfolio properties or new construction projects. The real estate industry, which is not known for being on the forefront of technological advancements, is now starting to see the benefits of innovation. These real estate technologies are transforming the processes of buying and selling property. Securing funding in today’s real estate industry no longer takes months as investor decisions are now secured by accurate data, reports, and property valuations.
Much like the recent buzzwords FinTech or blockchain, PropTech is the digital trend permeating the real estate industry. It is currently making a lot of noise, mostly because there is a lot of catching up to do in this industry regarding software and technology applications. There is fear that this digital application will disrupt the current real estate industry. Change is inevitable, and if real estate managers and investors do not get ahead of the curve, they may find themselves left behind.
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