What is Proptech, Contech & CRE Technology?

In 2020, it would perhaps be the era where India witnesses a new wave of Real Estate Technology!

Technology in this new age has now blanketed almost all industries across the planet. Real Estate is the largest asset class in the world is also now at the forefront of implementing technological innovations that will take its stride forward onto the next phase.

Real Estate Technology or Proptech is a broad term that aids the tenets of Property Acquisitions, Rental Services, Construction Technology, and Commercial Real Estate. Based on each of these, it can be classified into various categories such as Contech and CREtech, etc.

So shall we dig deep into the classifications of Real Estate Technology?

but before that,

What is Proptech or Property Technology?

Proptech or property technology is the integration of Information technology into mainstream real estate. From data collection, and property listings to the current Virtual Reality Tours, and BlockChain incorporation, every tenet of Real Estate now falls under Proptech.

The origins of proptech date back to the late 1980s and 1990s when computers were used to simplify the tedious paperwork of deals and regulations. As the scope of the Internet grew, builders and developers started to put up websites on properties. Soon in the advent of the Y2K phenomenon, realtors started property web portals.

The technological inputs of the early 2000s have deeply woven the concept of accessible real Estate into every household. It also caused the downfall of many brokers who failed to evolve with the trend. Soon searching for properties online became the norm.

Evolution of Proptech

From early 2019 to 2020, it has further evolved to incorporate the elements of

• Virtual Reality and Augmented Technology

• Drone Technology

• IoT and Home Automation

• Data Analytics and Investment Predictions

• Blockchain and Cryptocurrency

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These are some of the ways PropTech Has Helped the Real Estate Industry:

• Enhanced Property Search: PropTech has transformed the property search process, which was previously time-consuming and irritating, into a seamless and efficient experience. By combining extensive search filters, these platforms allow users to precisely tailor their home selections, taking into account aspects such as location, size, price range, number of bedrooms and baths, and special amenities. Furthermore, the use of virtual tours provides potential buyers and renters with immersive property experiences, allowing them to explore spaces remotely and obtain a thorough understanding of the layout, architecture, and overall ambiance. Interactive maps improve the search experience by providing a visual depiction of property locations, accessibility to amenities, and transit alternatives, allowing users to make more educated decisions and prioritize homes that are compatible with their lifestyle and preferences.

• Streamlined Transactions: PropTech has transformed the real estate transaction process by delivering digital solutions that automate formerly tedious paperwork. The use of digital contracts, aided by efficient e-signature platforms, eliminates the need for physical document exchange, shortening the deal-closing timeline. Furthermore, secure online payment solutions offer a seamless and quick way to conduct financial transactions, avoiding the delays associated with traditional payment methods. This combination of digital tools has dramatically increased the overall efficiency and speed of real estate transactions, benefiting both buyers and sellers.

• Improved Property Management: PropTech has transformed property management by delivering revolutionary software solutions that improve operations and efficiency. These tools enable landlords and property managers to easily manage tenant relationships, from tenant screening and lease negotiations to communication and rent collection. Maintenance requests are efficiently managed and assigned, resulting in more timely resolution and higher tenant satisfaction. Furthermore, these software solutions frequently give useful insights and analytics, allowing for data-driven decision-making to improve property performance and maximize returns on investment.

• Increased Transparency: PropTech has ushered in a new era of openness in the real estate business, transforming information access and sharing. PropTech gives buyers, sellers, and investors unprecedented insights by providing a consolidated platform for property listings, extensive data, and market analytics. PropTech eliminates information asymmetry by democratizing access to property details, historical data, pricing trends, and transaction histories. This increased transparency promotes educated decision-making, decreases information gaps, and builds confidence among all stakeholders in the real estate ecosystem.

• Cost Reduction: The integration of automation and digitalization has revolutionized the real estate industry by significantly reducing operational costs. From property management to marketing, PropTech solutions streamline processes, eliminating the need for manual labor and reducing associated expenses. Digital platforms enable efficient property listings, tenant management, and financial transactions, minimizing administrative overhead. Additionally, data-driven insights optimize resource allocation and decision-making, leading to cost savings in areas like marketing, maintenance, and property valuation. By automating routine tasks and leveraging digital tools, real estate businesses can achieve substantial cost reductions while enhancing overall efficiency and productivity.

AI and Machine Learning:

Proptech is been employed with both artificial intelligence and machine learning. Predicting the home buying trends in the market, real estate has put forward the use of AI and virtual reality into a reality that offers all the convenience for future home buyers. With metaverse on its inception, property buying has become more easier and more entertaining for every home buyer.

Cybersecurity:

By introducing numbers into proptech, the safety and security of crucial data about properties have become more strong. Cybersecurity on proptech has become common among the client data

It is estimated that the integration of 5G shall push the possibilities of proptech even further. Thus the technological innovations that await us in 2020 would exceed our every expectation.

What is ConTecH or Construction Technology?

Contech is the umbrella term for the technological innovations applied in the construction and building phase of structures. Any innovation involved in construction like the methods used, the designs, the tools, and the machinery is classified under Contech.

Contech is expected to bring in exciting innovations within the next decade. As it is a part of Civil Engineering, there are many new ideas gaining prominence within this sphere. The rise of smart machinery is an inevitable phenomenon that will revolutionize the Construction Industry, especially the ones that reduce the human fatality factor.

Autonomous machinery like rovers powered by AI, scouts the sites and delivers heavy materials across the world. Currently in India, such machinery is getting prominence as it will help to reduce human fatality.

India has already brought certain features of Western construction methods and machinery, especially the use of drones in construction. Construction methods such as MIVAN Construction Technology and Precast Technology are already popular in India. Drone Technology is currently used in mapping and analyzing sites and structures. However soon they will be developed to deliver heavy machinery and materials easily to high-altitude construction sites.

What is CREtech or Commercial Real Estate Technology?

Commercial Real Estate Technology deals primarily with Buying, Renting, Data Analytics, and Software, which help to operate and deal with Commercial Spaces like Shopping Malls, Retail Stores Offices, and Workspaces.

The current realm of Commercial Real Estate concentrates more on Co-Working Spaces rather than retail or shopping spaces. The yesteryears mostly focused on the buying and selling of these spaces and structures.

However, CREtech shall now move towards the integration of IoT or the Internet of Things to interact and operate on these structures, ensuring better comfort and easy maintenance.

Real Estate Technology is an inevitable asset for the sector as well as the consumers. As one of the most significant employer industries across the globe, both directly and indirectly, providing livelihoods to millions of people, the sector can't ignore the evolution of Technology. The industry will undoubtedly be one of the major leaders contributing to the best innovations in the coming years.

Here's some recent updates on the topic:

1. Proptech:

AI Revolutionizes Property Management

Artificial intelligence (AI) is changing property management. AI-powered chatbots are taking the lead, rapidly answering tenant inquiries and facilitating communication. Predictive maintenance solutions are also on the rise, using data to predict equipment failures and optimize building operations, resulting in cost savings and less disruptions.

VR & AR

Reshaping Property Interactions: Virtual reality (VR) tours have become the new standard, allowing for remote property viewings and immersive experiences that allow prospective tenants to actually see themselves living in a space. Augmented reality (AR) solutions are increasingly gaining popularity, allowing users to digitally position furniture, design layouts, and see remodeling projects before breaking ground.

2. Contech:

3D Printing Makes its Mark

The potential of 3D printing in construction is rapidly becoming a reality. From printing intricate building components to even constructing entire structures, this technology offers unprecedented design flexibility and has the potential to revolutionize how we build.

3. CRE Technology:

Smart Buildings Powered by IoT

The idea of smart buildings is no longer futuristic. CRE technology is largely focused on using the Internet of Things (IoT) to develop smart buildings. Sensors implanted throughout the building to gather data, which is then evaluated to improve energy efficiency, space use, and tenant comfort. This not only lowers operational expenses, but also makes the atmosphere more sustainable and comfortable for the occupants.

Workplace Experience Platforms

Employee experience has taken center stage with the rise of workplace experience platforms. These comprehensive solutions serve as a focal point for employees to handle numerous aspects of their work environment. From scheduling conference rooms and controlling access control to procuring office supplies, these platforms improve employee experience and business operating efficiency.

There you go, folks. These are all you need to know about PropTech, ConTech, and CRE Technology.

Did you know that Google has some amazing devices to set-up for your smart homes? Read our blog to know more.

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