Real Estate Technology is a sub-category of financial technology, which applies information technology to financial transactions; in the case of propTech, to real estate transactions. The goal is to reduce paperwork, make transactions quicker and more efficient. PropTech encompasses property management using digital dashboards, research & analytics, listing services/tech-enabled brokerages, mobile applications, residential & commercial lending, 3D-modeling for online portals, crowdfunding real estate projects, shared spaces management, as well as organizing, analyzing, and extracting key data from lengthy rental documents.[1]
"PropTech is one small part of the wider digital transformation of the property industry. It describes a movement driving a mentality change with the real estate industry and its consumers regarding technology-driven innovation in the data assembly, transaction, and design of buildings and cities". This is the first accepted definition of PropTech put forward by academic Professor Andrew Baum (author of the first academic report into PropTech [2] and PropTech influencer and evangelist James Dearsley [3]
PropTech is an economic industry composed of companies which use technology to make real estate transactions more efficient. Besides for own stay, there are investors who generate income and capital gains by investing in different categories of Real Estate properties over time - They are broadly residential, commercial and industrial.[4] Historically used as a more tactical investment or for providing portfolio alpha, real estate has been used as part of a long-term core strategy due to increased market efficiency and increasing concerns about the future long-term variability of stock and bond returns. In fact, real estate is known for its ability to serve as a portfolio diversifier[5] and inflation hedge.
It generally refers to a group of startups trying to target every segment of the property chain, attempting to disrupt and improve how the current market players (developers, buyers, sellers, renters, investors, and real estate professionals) design, construct, market, discover, transact and operate real estate.
In 2015, real estate tech reached record funding and deals levels, with more than $1.7 Billion deployed globally across more than 190 deals. This represents a 50% increase year-over-year and a whopping 821% increase in funding compared to 2011′s total. Deal activity also soared, growing 378% with respect to 2011′s total, and 12% year-over-year.[6]
References Edit
https://gomedici.com/property-technology-proptech-fintechs-next-frontier/
https://www.sbs.ox.ac.uk/sites/default/files/Press_Office/Images/proptechreport/PropTech%203%20-%20The%20Future%20of%20Real%20Estate.pdf
https://medium.com/@vincentlecamus/proptech-what-is-it-and-how-to-address-the-new-wave-of-real-estate-startups-ae9bb52fb128
root (2003-11-25). "Real Estate". Investopedia. Retrieved 2016-10-20.
Stammers, Robert (2008-05-11). "Can Real Estate Stabilize Your Portfolio?". Investopedia. Retrieved 2016-10-20.
"Global Funding To Real Estate Tech Explodes, With Startups Raising $1.7B In 2015". CB Insights - Blog. 2016-02-17. Retrieved 2016-10-20.
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