What is the PropTech industry?

Property technology, or Proptech, refers to all the tech tools used by real estate professionals and clients to better research, sell, buy, manage, and market a property. Two of the most common examples of PropTech technology in Europe, which already sounds very familiar to everyone, are the real estate platforms Airbnb and Booking.com. PropTech adoption rate in Europe is slower than in the USA but greater than in Asia. According to Statista, the United States and China have the most PropTech investment worldwide. In the first half of 2022, the U.S. counted 61.1 billion dollars in PropTech investment, more than any other country in the world. In the Asia-Pacific (APAC) region, China counted 12.5 billion dollars, while India 9.1 billion dollars. At the same time, the top three European countries in this regard were Spain, the U.K., and Germany.

The PropTech industry helps the commercial real estate sector, including brokers and agents. It offers a good environment for growing their portfolio, attracting investors and bringing entrepreneurs under the same umbrella. It covers various categories of startups, such as:

• property management & leasing;

• brokerage & marketing;

• productivity tools;

• construction;

• smart buildings;

• finance & investment 

• visualizations.

Why is PropTech important? 

Some of the many PropTech industry benefits include:

• The rapid adoption of technology makes room for industry improvement overall, developments that meet everyone’s needs;

• Urbanization, driven by the businesses and consumers involved, requires a natural improvement of the existing platforms and processes;

• Managing the properties and operating the buildings while tracking costs makes renovation a priority and maintains the continuity of construction.

Moreover, like any other sector in a continuous expansion, the PropTech industry is also following a sustainable path. So, PropTech solutions can make properties become more energy efficient by:

• Improving occupants’ comfort with smart applications controlling temperature and humidity;

• Reducing constructions’ carbon footprint with systems adjusting the cooling, heating, and lighting of a room;

• Increasing clients’ security with remote monitoring for video surveillance, and control mobile credentials;

• Ensuring system connectivity with virtual tours, serving 24/7 for preventative issues and in advance occupancy - growing both rentability and profitability.

The future of the PropTech industry is promising, and it will be bright! Joining a cross-functional ecosystem like this one is both easy and challenging, but it is definitely a trustworthy process in which every business vertical has extended benefits.

How is PropTech changing real estate?

It is important to point out that the PropTech market is essential for the real estate industry to grow and for all key participants to benefit from its features.

The PropTech industry can reshape the real estate sector by:

• Planning permission processes including all stages - from validation to consultation and publicity, consideration, negotiation, recommendation and decision;

• Building management - operations, maintenance, and reparations of a construction. This covers elevators, lighting, HVAC, and security systems;

• Transactions - everything from pre-contract, due diligence period, financing, and closing preparation time;

• Customer experience & services - a wide range of solutions and facilities offered in an optimal time frame so that clients will always be satisfied;

• Data management, security, and privacy - all measures of data protection by safeguarding digital information;

• Legal and compliance management - ensuring compliance with the national and international regulations;

• Marketing and insights - relevant for a better understanding of the industry;

• Performance measurement and tracking - allows companies to make predictions;

• Lease renewals - agreements on new terms and conditions, clauses, and higher prices.

How can PropTech transform your business?

When technology, property management, and your business meet and greet, the solutions and automation will sync. Let’s see, then, on a larger scale, what a meaningful power the PropTech industry can have on your company:

• By embracing technology, even as a beginner, you will achieve your long-desired objective faster than you thought, both online and offline;

• You are linking to a globally extended industry, so you can anticipate the next steps in your country, too;

• No matter your field of activity, improving operational efficiency will make your startup more sustainable;

• You will appreciate the professionalism coming from transparent communication with real estate players.

Whether you are active in the field of property management & leasing, brokerage & marketing, construction, finance & investment, or having a startup in productivity tools, smart buildings, or visualizations, in the long term, standing your ground may not help you to achieve new milestones. It's a fact. Sometimes, you have to go a little further and be better than ordinary companies from your niche to reach other markets on the continent or, why not, globally. The PropTech industry might be the best way forward for you, as well as the environment and society. The innovations are endless.

Last but not least, to reach the right customers, you need a well-established communication strategy, and you need to attract and shape the audience you want by discovering their interests (in this case, the purchase of a home or the rental of a space that provides a wide range of facilities). In this endeavor, an agency that offers integrated marketing and PR services could help you best reach your target audience. In this way, you increase your trust in the market regarding your end clients and the professional way you position yourself in the industry. At the same time, consistency in how you approach promotional campaigns and developing key messages (about new facilities or spaces) must be recognized no matter which communication channel you choose. 

That being said, we hope that this article will help you learn everything you need to know about the PropTech industry, why it is important to take part in it and unlock all the curiosities that suit your why.

Now, ready, steady and embrace the new wave with professionalism!