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What is proptech?

December 19, 2022

What is proptech?

December 19, 2022
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Proptech is the shortened version of property technology; it describes all the technical applications, software, and innovations that support the buying, selling, research, marketing, and management of real estate assets.

 

It has a few other names, like real estate tech, ReTech, and RealTech. Regardless, it means the combination of technology within the real estate industry. If you’re unsure of examples of proptech companies, think of the platform Airbnb, which would be an early example of a proptech company. 

 

Listing sites and property management platforms such as Rightmove, Zillow, and PurpleBricks are also examples of proptech companies. Chances are, you’ve used at least one of these sites to search, book, buy or sell a property to live in long-term or as a vacation home.

 

One of the most recent areas of innovation within the proptech space would be blockchain technology; many real estate blockchain projects are springing up using the technology to offer advantages such as lower fees and better security of assets and documentation. 

Proptech can cover two main areas: Residential and Commercial real estate

 Let’s take a closer look at how proptech affects these two individual areas of real estate. 

 

Residential Real Estate 

Property technology that services the residential market includes property tech that facilitates how people rent, buy, or invest in a property. This can include websites such as Airbnb or SpareRoom. Residential property technology can be defined as: 

  • Listing sites and marketplaces 
  • Property sales software 
  • Digital lenders, brokers, and alternative financing 
  • Loan lending and management software 
  • Insurance and transaction management software

 

Commercial Real Estate 

Commercial Proptech, also known as CREtech, translates to using frontline technology to search, manage, buy and sell commercial property such as offices, industrial units, and retail. Proptech for commercial real estate includes marketplaces like Locale and Biproxi. 

In this area, you’ll find: 

  • Commercial property listing marketplaces
  • Software for planning and management of development projects
  • Transaction underwriting, management, and debt financing platforms
  • Retail and industrial unit management software 
  • Co-working and co-living management tools

 

How has technology benefited the real estate industry? 

Technology has affected almost every broker, landlord, tenant, investor, and letting agent within the industry with innovative software and tech as simple as listing sites. Let’s take a closer look at how it’s affected a real estate investor specifically:  

  • Provides greater detail in the planning process and management of projects, which will decrease the likelihood of costly mistakes, and ensure deadlines are met. 
  • Proptech Platforms and software provide investors with a more comprehensive understanding of property assets. 
  • Conducting the entire investment journey on one platform eliminates the need for costly intermediaries dotted throughout the traditional property investment process. 

 

For someone on the other side, proptech has offered just as many benefits; let’s take a look at a broker, for example: 

  • More efficient data collection and AI-driven structuring and documenting of data sets could give brokers an edge when closing deals. 
  • Automating admin tasks, digitizing paperwork to reduce losing key documents, and creating a faster brokerage process. 
  • Back office processes can be streamlined so resources can be diverted to more important tasks like research, marketing, and closing deals. 

 

There are also several benefits for your typical landlord and tenant; proptech has touched every single person within the real estate buying, selling, or management process: 

  • 24/7 insights enabled by smart devices and sensors measure things like gas readings, water, and electricity consumption, and security measures like alarms. These things give landlords remote control and insights into how tenants utilize their space. 
  • Communication between landlord and tenants and signing agreements on one platform helps ensure clear and healthy expectations from both parties. If you communicate via several platforms, communication is bound to break down, and problems might arise. 
  • 3D videography and virtual reality allow landlords to advertise their properties online without physical viewings; you can view and inspect a property from the comfort of your sofa. 

Who is Hedgehog? 

At Hedgehog we’ve built an app that helps eligible individuals invest in the world around us; gaining exposure to real asset investments from real estate to renewable energy. Our in-house team has investment expertise gathered at the likes of Goldman Sachs, Partners Group and HSBC as well as product and engineering expertise honed at Monzo, Revolut and IBM, which has enabled us to build an application that offers the kind of user experience we believe today's modern consumer demands. Learn more about Hedgehog.

Disclaimer

Nothing in this article constitutes financial advice or guidance. The content in this article is an opinion and is for general information purposes only. This article is not intended to be relied upon to make financial decisions. It is not intended to be financial advice. The value of your investment can go up or down so you may get back less than your initial investment. The article may contain links to third-party websites or resources. Hedgehog provides these links and resources only as a convenience and is not responsible for the content, products, or services on or available from those websites or in those resources, the links displayed on such websites or the privacy practices of such websites.‍