The ins and outs of digital real estate.
While the financial sector has already experienced digitalization with fintech (financial technology), the real estate world is currently still in the infancy of the digital age. More and more new ventures are trying their best to come up with sophisticated solutions to help the real estate world, which is the largest financial asset class in the world with a market cap of around 320 trillion dollars, to make a digital breakthrough.
But what is “PropTech” anyway?
Just as Fintech is made up of “Finance” and “Technology”, a closer look at the term “Proptech” reveals the breakdown “Property” and “Technology”. It is thus the general term for any company that wants to lead the real estate industry into digitalization.
The first and probably best known “PropTech” company in the world was AirBnB. A company that enabled the renting of apartments via private individuals worldwide and thus turned the entire tourism and hotel industry upside down. A breathtaking example of how technological development can plunge entire industries into financial debacle when already market-leading ventures miss the jump on the digitization bandwagon.
Not all “PropTech” is the same
Since we are talking about an overarching term here, it can of course be subdivided into further smaller segments. For example, the following more in-depth classifications have emerged just in the last few years:
Shared Economy Real Estate
This is the term used to describe any PropTech platform that offers the shared and/or joint use of a property. As mentioned above, AirBnB is one of the best-known PropTech companies driving the shared economy.
Fintech / Real Estate Fintech (Finance-Technology)
As mentioned above, is the older brother of PropTech, which has digitized the financial sector to make it easier for customers and businesses to access financial services. The two industries meet at Real Estate Fintech, which focuses on facilitating financial processes in the real estate sector.
Describes the use of digital design tools to more efficiently implement modern materials and sustainable approaches to the construction process.
It can only get easier
From mortgage management to property management, including communication with tenants, to facilitating loan administration, tinkering and optimization is taking place at all corners of the real estate world.
In the end, the entire industry benefits
If the previously mentioned hurdle of harmonizing all the data in this industry is overcome, all parties involved will be able to benefit greatly. The following are some examples of advantages that are already becoming clear.
For real estate brokers:
- It will be much easier to collect information about properties and customers and apply it to AI marketing in an automated and cost-efficient way.
- It will streamline a lot of the work processes and therefore make general back-office activities a lot more efficient.
- Secured digital transactions and contracts are already an integral part of this industry and a clear early result of digitalization.
- Digital customer contact will gradually intensify and save a lot of work and time.
For administrations and employees
- Management will gain more and more insight into the actual use of rented properties, as smart home devices, security sensors and other technologies installed in houses offer a constant stream of data and thus know in detail 24/7 about the condition of the rented property.
- Communication between management and tenants will become more efficient and digital. This will save a lot of time.
- Thanks to detailed 3D visualizations and 360-degree camera shots, apartment inspections will no longer be tied to geographical locations. You want to see an apartment in New York without traveling there? PropTech makes it possible.
For real estate investors
- Thanks to digital twins & co. any planning processes are simplified by worlds. This enables clear and efficient communication, which previously required far more effort.
- Analyzing portfolios and potential new purchase and construction projects becomes a breeze.
One for all and all for one
The biggest challenge we and our competitors in the PropTech market have to overcome is the harmonization of all available data. While various public as well as private providers offer different types of real estate-related data, it is highly fragmented due to the large number of different sources and can currently only be collected with a lot of effort. In Europe alone, there are now more than 3,000 independent PropTech companies that obtain their data from a wide variety of sources and are all trying to assert themselves independently on the market.
The situation is comparable to the development of the smartphone. Where before the first iPhone we used flashlights, radios and calculators from a wide variety of manufacturers, Apple has managed to harmonize all these tools in programming a language and offers them united on one platform. The basic building blocks for the digitization of the real estate industry are therefore in place – it’s just that we’ve been waiting for this one platform that unites them all. But the wait is now over.
Nomoko is not just a PropTech company, but an attempt to distribute the applications of all PropTech companies on one platform and also make them locally usable. So with Nomoko, you can already access the largest collection of public and private real estate data in Switzerland and analyze it in depth supported by our Nomoko Store with third-party applications directly on our platform.