The use of real estate technology, or proptech, has significantly influenced how the real estate market works. An expert explains how the real estate industry can maximize the benefits.
In today’s digital age, the best way for many industries to move forward is to embrace technological transformation – and the real estate industry is no exception. Recent developments in technology have dramatically altered the way the real estate market works and these changes have resulted in several benefits.
"The proptech industry in Australia has grown tremendously in recent years as the power of technology to create more positive, efficient and transparent experiences for tenants, landlords, managers and agents came to fruition, ”says Mina Radhakrishnan (pictured), co-founder of Australian property management start-up: Different. “The traditional real estate industry, which is very manual and paper-based, has often resulted in friction between these major parts, but with the support of technology to automate day-to-day tasks, many of these issues are being resolved. "
However, Radhakrishnan says relying solely on technology is not enough and that a balance between human and technological aspects is necessary for the real estate market to progress.
"Ownership is a very personal thing – you are often dealing with someone's most valuable possession, so balancing technology with people to get the most out of both provides the best outcome for everyone. world, ”she said.
The advantages of proptech
As with most technological advancements, the goal of proptech is to improve efficiency.
"Proptech is changing almost every element of the buying, selling and renting journey," says Radhakrishnan. “In fact, in almost any case, the entire process can be done online – from inspecting a property via 3D virtual listings, to buying a property. a home via live online auction. And that helps make the journey more efficient and transparent for all parties. "
In terms of property management, she says proptech can provide a greater level of transparency and connectivity between investors and property managers, which is one of her business goals.
"Through our online portal and apps, we provide homeowners with full transparency on all aspects of their property, such as the exact amount they will receive each month and the maintenance work. asked, ”she said. "It sounds simple, but it helps solve some of the traditional issues that have plagued the industry."
Radhakrishnan says the coronavirus pandemic has also spurred proptech adoption in the Australian real estate market.
"COVID-19 has … [shone] a light on how technology can help propel the industry, not only during these times, but in the long term to respond to changing times. consumer attitudes and leverage efficiency gains, ”she says. “When we stopped a few months ago, virtual inspections quickly became the new normal, for example. We expect this to continue as we all adjust to the new normal. "
The future of proptech
Radhakrishnan expects the use of proptech to gain popularity in the near future. The key is to improve the user experience.
"It will be important to keep the end user in mind for adoption to continue to grow," she says. "Technology must foster the consumer experience. A lot of people think technology can be dehumanizing, but I fundamentally don't believe it. I believe that creating high-tech products and systems will create a better experience and better outcomes for consumers in the long run. "
Radhakrishnan says she sees a future where there will be "greater transparency between landlords, tenants, traders and property managers, as well as a greater reliance on apps and portals ”.
"Having one place to manage and view everything related to your property will become the norm, instead of having to search a series of emails in your inbox for context or look for random text messages, ”she says. “Data will become the basis of all decision-making instead of 'hyperlocal' agents speaking anecdotally and with few facts.”
Radhakrishnan says that for the real estate industry to advance, "it's important that technology handles the really simple tasks that can be automated", but just as important "that humans handle situations delicate which require compassion ”. She says COVID-19 rent relief efforts are among the situations where "empathetic holds" between landlords and tenants are needed.
The most impactful proptech tools
For a proptech app or tool to be effective, it needs to make existing real estate services more accurate and efficient.
“Sometimes people can get drawn into using new technology for the sake of technology,” says Radhakrishnan. "But what we need to focus on is creating a great experience by being transparent and communicative through automated real-time workflows, great user experiences, and intelligent internal systems that handle the mundane." . This can be performed using tools that already exist today. "
She says the use of virtual and augmented reality or VR / AR, for example, can make potential tenants comfortable with their new space through virtual tours, while drones are good at showing aerial views and other vantage points that buyers normally don't. access to.
Here are five of the most powerful tools revolutionizing the real estate market:
1. VR / AR
Through virtual tours, agents can show potential buyers what a property looks like even before it's built. They can also let customers “experiment” with the different units available and make upgrades and modifications on site. VR / AR can also be a useful tool for agents with remote buyers or those who want to show their clients multiple properties at the same time.
With their ability to capture high quality aerial photos and videos, drones can be a practical marketing tool. They can also be used to provide visual mapping of the land or neighborhood of an inscription.
3. Real estate management applications
These apps help property owners and managers efficiently manage their properties. Using these apps saves them time by automating simple tasks, providing insight into their finances, and managing their accounts.
4. Internet of Things (IoT)
Connectivity is one of the main advantages of proptech technology. IoT is defined as "a network of connected devices capable of communicating with each other for the benefit of the user". In other words, IoT is used to streamline real estate processes to eliminate inefficient steps and improve user experience.
Blockchain presents a new way for buyers and sellers to connect with each other. By using blockchain, they can eliminate middlemen from real estate transactions, allowing them to reduce costs.