The term Proptech (Property Technology) refers to new technologies and innovations applied to the real estate industry, where the digital transformation has modified not only the distribution aspects but also the product itself.
From the expansion of home automation and smart buildings to online real estate portals, the use of technology has led to coining the term Proptech, which encompasses all the startups that use technology to change the way business is done in the real estate industry. This includes the different stakeholders in the business, such as sellers, buyers, builders, real estate companies, owners, and investors.
The term was first introduced in 2000 with the advent of online real estate portals and specialized real estate websites. Due to the growing competitiveness between companies and the increase in investment in technology, Proptech is closely linked to Fintech in the provision of disruptive solutions for the real estate industry. In addition to reducing the time, effort and resources required to carry out previously complex processes, the emergence of
Proptech offers many advantages, such as:
- The existence of an online real estate market, which makes it possible to centralize the sector's supply, carry out simple searches, compare services without leaving home and talk directly to intermediaries or sellers.
- The democratization and accessibility of tourism through the use of platforms such as Airbnb, which increase the income of thousands of people around the world by allowing them to conduct agile business with their own properties.
- The minimization of travel with virtual reality, which makes it possible to visit properties without having to make arrangements between consumers, real estate agents and intermediaries.
- The emergence of real estate platforms where it is possible to make small investments collectively but also have access to financing options.
- More accurate monitoring of real estate projects through the use of specific software to anticipate potential contingencies.