A few overviews of the importance of the PropTech industry, how it can change the real estate market, and specific examples of how PropTech has transformed businesses could be a good starting point to get an overview of the field.

As with every newly launched field, the PropTech market faces specific challenges and opportunities for growth to match. Understanding these challenges and opportunities, what the future looks like for PropTech, how you can enjoy its benefits if you are active in real estate, how startups in related fields are developing, and what will be the most significant innovations in the industry - these are essential information through which you will understand the subject in depth.

Next, we will closely monitor the trends in the real estate market and the PropTech industry, how technology affects or stimulates the real estate sector, and what technological means they use.

Real Estate Market and PropTech Industry Trends

It is no longer a surprise that the PropTech market is growing at an accelerating pace. In this regard, several vital factors support and favour its growth, such as identifying the best investment, marketing, and sales techniques among agents and investors. Here are the trends in the real estate market and the PropTech industry:

• The use of cloud, AI, digitisation, and the increasing use of several cutting-edge technologies. All this helps to increase productivity;

• Responsible investment in green buildings is a crucial aspect of the PropTech industry. This involves cultivating ESG values (Environmental, Social, and Corporate Governance), such as reducing carbon footprints and monitoring energy consumption. Buildings with lower carbon footprints, equipped with intelligent sensors that monitor energy consumption, create a new standard among investors and contribute to a healthier and more sustainable environment. The demand and efficiency of property management software lead to the improvement of services for customers by personalising their experience;

• Extensive data analysis is a crucial aspect of the PropTech industry. It involves analysing large volumes of data to identify trends, patterns, and insights that inform business decisions. This leads to making better and more accurate decisions, which will also increase revenues. Data privacy and security are priorities in all industries, especially in the PropTech market. Customers must be assured that all their transactions are secure and that their personal data is only used for this purpose.

How Will PropTech Revolutionize Property Rentals?

Based on ownership, the PropTech market is divided into three sectors: residential, commercial, and industrial. The residential industry gained momentum, especially during the pandemic, and continues to be the most dynamic. The demand for new rental methods, sales options, and new adjacent services, which vary from one owner to another, has led to significant growth in this segment.

PropTech will significantly change the real estate industry by:

• The ease with which the value of a property can be determined through the latest tools and technologies;

• Reduction of financial risks, as well as transaction costs;

• Prioritising the needs of the consumer and increasing his comfort;

• Helping real estate managers and brokers promote properties faster, more efficiently, and with outstanding results. Modern digitisation solutions make sales processes and marketing products more versatile.

What technologies do real estate agents use?

The solutions offered by the new technologies used in the PropTech industry are versatile, can be accessed instantly, and are ready to meet the needs of each user. By dividing the PropTech market, the beneficiaries or end users fall into four broad categories:

• housing associations;

• real estate managers/agents;

• real estate investors;

• mortgage lenders.

As a result of this division, real estate agents faced specific challenges, such as collecting money, paying maintenance, and monitoring tenants who disturbed the peace of other tenants in the common spaces. Thus, the development of technologies to support these actions, their implementation, and constant monitoring contribute to a better management of the activities carried out by all parties involved.

In a competitive and growing climate, the major players in the market are constantly researching ways to expand their product lines, contractual agreements, collaborations, and mergers with other organisations.

Here are the technologies currently used in real estate:

• Conversational AI assistant (AI Chat). With predefined responses, customers can benefit from 24/7 support;

• Big Data. All real estate agents should rely on previous information to make predictions, and Big Data can also help them in difficult situations (economic crisis, war, pandemic);

• Digital, online, and remote notary services (Remote Online Notary). Such a service facilitates the documents’ issuing easily and quickly without wasting time at notary offices;

• Customer Relationship Management (CRM) system. Tracking old and loyal customers, buying and selling processes also helps to find new customers who may be interested in the services provided;

• Social Media & Video Marketing. Constant promotion on social networks and the preparation of running video materials, especially through advertisements, are essential to attract potential customers;

• Task management. Dividing tasks through a dedicated system helps transparent communication within the team. Also, customer requests reach everyone's attention and get a higher percentage of solving in good time;

• Blockchain technology. Documents checking and encrypted real estate transactions minimise the risk of fraud;

• 3D virtual tours of homes. The house layout, room size, and functionality are much more transparent and authentic than in the photos. From the buyer's perspective, 3D tours are a significant asset in the home-buying decision.

How can you stay relevant in the PropTech market?

Both real estate companies and startups must always be open to changes and challenges in the industry. Essential steps to follow:

• Adopt every digital innovation that folds into your workspace;

• Prepare for vertical integration;

• Be flexible to remain competitive in times of crisis;

• Adapt real estate services to the increased demands of clients;

• Make sure the real estate software you're using is competitive and market-ready.

In recent years, the real estate market has evolved unprecedentedly through innovative PropTech solutions that add value and revolutionise the industry down to the smallest details. Thus, real estate professionals must align with these trends and differentiate themselves.

Adopting the latest software solutions streamlines processes, improves customer experience, and, last but not least, increases profitability. There are three trends of digital progress with significant influence on the PropTech market, which form a perfect whole: artificial intelligence, integrated adaptive software solutions, and personalised recommendation systems. The benefits brought by this trio are as innovative as they are necessary. We hope that you find them helpful, too, and they will also speed up the development of your start-up in this field!