Property technology is better known as Proptech, and it has become one of the major talking points in real estate. Billions of dollars are being invested in new innovations and enhancements. Proptech isn’t just a buzzword; it is a whole concept that is totally reshaping the real estate industry.
What Is Proptech?
Proptech is a technology that is aimed toward the real estate market and industry. This technology may be used to alter the way that real estate is bought, sold, designed, contracted, and managed. This can include both commercial and residential properties.
The term has gained a lot of popularity as Proptech has had a significant impact. We can see the effect the digital revolution has had on the world, and real estate is no different. Technology is advancing at such a rapid rate and is affecting buildings, cities, and customer interactions.
Proptech is such a broad term that can cover so many different aspects. Its function is to improve the work of professionals and companies in real estate. Proptech offers a rapidly changing digital landscape for the real estate sector.
Stages Of Proptech
The different stages of Proptech were all funded by investors and leaders in the industry. Each stage involved experimenting with new technologies. These were all groundbreaking at the time and included the implementation of such elements as virtual tools, AI, or blockchain technology.
The first epoch of Proptech could be considered the advent of the internet and online listings. This groundbreaking technology faced a lot of initial resistance. Even by the year 2000, you may not have heard about people renting or selling properties online. Eventually, eCommerce was fully embraced by the real estate industry. It is now commonplace.
Later, the real estate industry saw the emergence of smart buildings and smart homes. Real estate companies started using data analytics and VR tours. This represents quite an expansion of the use of technology in real estate.
Today the real estate industry uses drones, big data, 5G, AI (artificial intelligence), and solar power. Proptech has evolved into a sophisticated set of interlinked systems. They all serve different functions.
Proptech Technologies
Professionals and customers are demanding more sophisticated Proptech. The success of professionals may depend on how well they can integrate these new technologies. Proptech systems can be used in sales and leasing, construction and architectural services, and finance.
AI
Real estate agents have so many tasks to perform that may seem dull and repetitive. Smart real estate agents will make full use of AI to carry out these tasks.
Some AI tech can be used to automatically classify listings according to types of rooms, styles, and features. It may be able to automatically tag relevant photos. It can help with comparing the market and analysis. AI can be used for auto-generating personalized email sequences tailored to individual customers based on their demographic and life experiences. These automated processes can save a ton of time.
VR
Virtual reality allows real estate agents to give virtual tours. They can give tours of buildings that haven’t even been completed yet. They don’t need to leave their offices and can save a lot of time. This is sure to give them a competitive edge. In today’s property market, many people buy without seeing the building in person.
According to this report, VR will be used by 1.4 million real estate agents by 2025. As well as virtual tours, VR can offer the possibility of exploring possible solutions for buildings. You could virtually add furniture to the existing interior and see how it fits before committing to buying.
Contract Automation
Drawing up real estate contracts and leases takes up hours and hours of time. Using contract automation software can free up a lot of work time.
In today’s world, real estate agents will use automated documents, digital signatures, and analytics. This saves having to print, sign and scan documents by hand. This technology helps to reduce repetitive tasks and extraneous paperwork.
Lead Generation
Seeking leads can be a challenging task for any real estate agent. Proptech provides many lead generation tools that can be utilized. Proptech can help with providing sales and marketing solutions. It can help real estate websites to use smart property valuation tools.
Listing Real Estate
Having a strong web presence is essential in today’s real estate market. There are many platforms that can be used to list properties, help generate new leads and establish and build positive relationships with clients.
Big Data
Big data means collecting and analyzing data. This will include real-time and historical data. By using well-structured data sets, real estate agents can develop highly accurate insights. This can help with pricing, home-value trends, and potential risks.
The Internet Of Things
The internet of things (IoT) is a “smart” network of sensors and devices. They constantly send signals to each other. They can help you to keep track of a building’s state. They can monitor and adjust the temperature, security measures, and general maintenance. They can link to your mobile phone or laptop so you can adjust your home from a distance.
Construction Technologies
Many construction companies are focusing on being more green. This means building properties that are sustainable and energy-efficient. Modern appliances are also much more energy efficient. There is still a lot more that can be done to make homes environmentally friendly.
Chatbots
This is a simple use of Proptech that can dramatically improve customer experience. Chatbots are a must-have for almost any customer service website. Chatbots can help to reduce manual work and costs. They are powered by AI and can also help to provide actionable insights into what your customers need.
Micro-Investing
Micro investing means that even people with little savings can enter the world of investing. It means investing in fractional shares of a stock. The same principle is now being applied to real estate. It is possible to buy a percentage of a property and reap some of the financial rewards. This could be from the lease of the property or from its increase in value over time and eventual sale.
In Summary
These days Proptech is the buzzword on everybody’s lips. It is called the new disruption power and the driver of innovation. It is said to be the remedy for real estate agents having to deal with endless paperwork and confusing spreadsheets. In this article, we outline some of the ways that Proptech is helping to revolutionize real estate in today’s world.
TORONTO – The Toronto Regional Real Estate Board says home sales in October surged as buyers continued moving off the sidelines amid lower interest rates.
The board said 6,658 homes changed hands last month in the Greater Toronto Area, up 44.4 per cent compared with 4,611 in the same month last year. Sales were up 14 per cent from September on a seasonally adjusted basis.
The average selling price was up 1.1 per cent compared with a year earlier at $1,135,215. The composite benchmark price, meant to represent the typical home, was down 3.3 per cent year-over-year.
“While we are still early in the Bank of Canada’s rate cutting cycle, it definitely does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October,” said TRREB president Jennifer Pearce in a news release.
“The positive affordability picture brought about by lower borrowing costs and relatively flat home prices prompted this improvement in market activity.”
The Bank of Canada has slashed its key interest rate four times since June, including a half-percentage point cut on Oct. 23. The rate now stands at 3.75 per cent, down from the high of five per cent that deterred many would-be buyers from the housing market.
New listings last month totalled 15,328, up 4.3 per cent from a year earlier.
In the City of Toronto, there were 2,509 sales last month, a 37.6 per cent jump from October 2023. Throughout the rest of the GTA, home sales rose 48.9 per cent to 4,149.
The sales uptick is encouraging, said Cameron Forbes, general manager and broker for Re/Max Realtron Realty Inc., who added the figures for October were stronger than he anticipated.
“I thought they’d be up for sure, but not necessarily that much,” said Forbes.
“Obviously, the 50 basis points was certainly a great move in the right direction. I just thought it would take more to get things going.”
He said it shows confidence in the market is returning faster than expected, especially among existing homeowners looking for a new property.
“The average consumer who’s employed and may have been able to get some increases in their wages over the last little bit to make up some ground with inflation, I think they’re confident, so they’re looking in the market.
“The conditions are nice because you’ve got a little more time, you’ve got more choice, you’ve got fewer other buyers to compete against.”
All property types saw more sales in October compared with a year ago throughout the GTA.
Townhouses led the surge with 56.8 per cent more sales, followed by detached homes at 46.6 per cent and semi-detached homes at 44 per cent. There were 33.4 per cent more condos that changed hands year-over-year.
“Market conditions did tighten in October, but there is still a lot of inventory and therefore choice for homebuyers,” said TRREB chief market analyst Jason Mercer.
“This choice will keep home price growth moderate over the next few months. However, as inventory is absorbed and home construction continues to lag population growth, selling price growth will accelerate, likely as we move through the spring of 2025.”
This report by The Canadian Press was first published Nov. 6, 2024.
HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.
Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.
Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.
The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.
Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.
They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.
The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.
This report by The Canadian Press was first published Oct. 24, 2024.
Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.
Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.
Average residential home price in B.C.: $938,500
Average price in greater Vancouver (2024 year to date): $1,304,438
Average price in greater Victoria (2024 year to date): $979,103
Average price in the Okanagan (2024 year to date): $748,015
Average two-bedroom purpose-built rental in Vancouver: $2,181
Average two-bedroom purpose-built rental in Victoria: $1,839
Average two-bedroom purpose-built rental in Canada: $1,359
Rental vacancy rate in Vancouver: 0.9 per cent
How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent
This report by The Canadian Press was first published Oct. 17, 2024.
