Before diving deeper, it is necessary to mention the roots of the PropTech industry: real estate Fintech, shared economy, and smart real estate. Could one succeed without the other? We bet they could, but the industry wouldn’t have become so popular and would have had fewer upgrades.

As more startups are engaged in property management, we’ll see how PropTech is changing real estate, what challenges and opportunities for growth exist, and the factors that favor or hinder development along the way.

The future of PropTech for real estate investors

PropTech operations cover a wide range of categories, from property management and leasing, brokerage and marketing, productivity tools and construction to smart buildings, finance, investment, and visualizations. All of these will improve the future of real estate players and the market’s size and efficiency.

Whether you are a buyer, investor, seller, or agent, understanding the future of real estate will ensure your competitiveness in the market. This being said, PropTech is vital nowadays for real estate to go round, not only for property management but also for customer experience and investment decisions.

If you're planning to launch a PropTech business or want to join as an investor, stay tuned for some tips that could help you through the process.

The future of PropTech influences people involved in real estate by:

• offering more effective platforms for saving time and resources;

• assuring utility management and maintenance, along with security administration;

• integrating property management with financial tools;

• implementing flexible payments and innovative payment solutions;

• evaluating the development, investment, leasing, buying, and selling processes.

How to get into the PropTech industry?

The set-up is ready. PropTech market can offer an all-in-one solution, allowing you to join an ecosystem where you can grow your business and knowledge simultaneously. The progress offers a high level of protection and security. What steps should you take: 

• forget about the traditional path used for launching a new business;

• approach a flexible and useful need for the real estate industry;

• adopt the tech-savvy way - sustainability and utility usage are very important in the recovery of every economy.

How are startups in PropTech real estate growing?

Considering the fact that it is a relatively new industry, technology has taken over the property management ecosystem from the very beginning. If you want to launch a successful startup on the market, you should use AI and machine learning solutions. Here’s what you need to know to ensure that your business will grow:

• Market validation is mandatory - join groups and associations for networking and learn from the best people in your industry (ask for suggestions and make continuous improvements);

• Build a team that includes not only specialists but also generalists to have an overall picture of the processes;

• Ensure that your infrastructure supports tech solutions - once your business is visible internationally, it should be ready to use with the latest upgrades available for its clients worldwide.

What are some challenges in real estate?

When discussing the advantages of the PropTech industry they are closely related to improving communication, collaboration, productivity and transparency in real estate. But besides that, what does PropTech mean for real estate? Let’s see what are the challenges, as well.

• Remote work changed residential preferences - after the pandemic, the new normal is focusing on generous places to live in that have multipurpose use (the place to sleep, to gather with your friends, and to work from home);

• People ask for better infrastructure and services (quiet zones, high internet speed, co-working spaces) - as people are now working from everywhere, these are mandatory for being productive;

• Short-term rentals are the new trend - changing the town you live in at about 4-5 years is something truly recommended, and it comes with multiple benefits for your well-being.

What will be the biggest tech innovation in real estate?

When talking about the most important innovations, they are significant as long as they are the newest on the market. Therefore, we can consider them as opportunities and trends that will effectively drive the PropTech industry landscape:

• Aggregation Platforms. Imagine saving time by having all the information you want or need on a single interface. Through these platforms, your customers can access data, services, and properties based on their preferences (from price to location and amenities) wherever they are on the globe. 

• Automation. When human intervention is replaced with intelligent tools, efficiency and profitability increase. As you expect, this also applies to the real estate industry.

• Big Data & AI. Predictive analysis and real-time information from the market are much more accurate when using vast amounts of data. When you already have an international perspective of the market, you also know the next steps you need to take to be among the first in your country.

• Customization. Personalizing real estate products and services offers numerous features for clients to personalize their searches and offers. This trend is increasing loyalty in all industries. 

• Data-Driven. When you understand the customers’ needs, it is much easier to make decisions for a better future of your business. Moreover, market trends help you to offer tailored solutions to your clients.

• Digitisation. Looking forward to the future of PropTech, instant access to property data is definitely the biggest tech innovation in real estate. With just a few clicks, everyone can take a virtual tour or make a transaction.

• E-signatures. Globalization and the international expansion of more companies have made e-signing almost a requirement worldwide. The pandemic has amplified this need, which assures both flexibility and security.

• Investing. Although finances are not so promising sometimes, getting into real estate is easier since crowdfunding has gained traction. When it comes to fractional investing, you can own a division of an apartment complex or commercial space.

• IoT & Smart Homes. In real estate, the interconnection of everyday objects through the internet—or, more briefly, IoT—means more than smart devices. It means creating interconnected ecosystems to raise efficiency and improve user experience overall. When talking about smart home features, here we include smart lock systems, automated lighting systems, and smart thermostats, among many more that boost sustainability. They are useful in multi-family buildings and the commercial sector. 

• Transactions. Adopting digitalization can also lead to efficient and transparent transaction processes. Real-time updates regarding transactions are part of PropTech's future.

• Virtual Reality. Since the pandemic, working from anywhere in the world has become the new normal, as can visiting a house you would like to live in. Therefore, virtual reality and 3D modeling tools can help real estate actors and future clients, both with ready-for-sale properties and with others still under development—all from the comfort of your home.

The use of new technologies will make it easier for people to filter options on property portals and decide on where to live or work. Information is now more accessible and manageable than ever before.

Given the context of standardization from the last few years, during which we were neither surprised by the progress nor able to use it at its full potential, we are now increasingly attracted by a mix of industries. Adopting real estate digital solutions will bring both excitement and challenges to PropTech's future. Taking the bad with the good will come, in the long term, as a promise for incredible benefits for both people (real estate players) and the environment. For now, it is as good as it gets.

We hope we've answered all of your curiosities about startup and growth opportunities in the PropTech industry and the challenges you may face along the way. Make the most of real estate tech innovations!