2022 and Beyond // Why Proptech Is The Future Of Real Estate

2022 and Beyond // Why Proptech Is The Future Of Real Estate

In a world where technology is constantly changing and evolving, it’s essential to use tools that allow you to stay ahead of the curve.

In the real estate industry, one of the most lucrative industries in the world, Proptech is quickly changing up the space.

According to Grand View Research, the global real estate market size was valued at USD 3.69 trillion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 5.2% from 2022 to 2030.

This explains why using new technologies such as PropTech is suitable for real estate.PropTech involves a number of technologies combined including, IoT, 3D-Printing, Blockchain, and other technologies.

Perhaps the most obvious benefit is that it can help agents and brokers connect with more potential buyers and sellers.

What is Proptech?

PropTech, or property technology, is a term used to describe the use of technology in the property industry. This can encompass everything from online real estate portals and apps to drones and 3D printing.

There are two main types: front-end and back-end. Front-end property technology refers to the technologies that consumers interact with directly, such as real estate apps and portals.

The back-end type encompasses the technologies that power these front-end platforms, such as data analytics and cloud-based software.

Investment in property technology startups has been on the rise in recent years, as traditional players in the property industry recognize the potential of technology to disrupt the status quo.

In fact, it’s expected that the PropTech industry will grow from its current US$ 18.2 billion to US$ 86.5 billion value in the next ten years.

Property technology has the potential to make the process of buying, selling, and renting property more efficient and transparent, as well as open up new possibilities for how we use and occupy space.

How is PropTech shaping the future of the real estate industry?

Historically, technology has been relegated to building infrastructure, like building automation systems for controlling heating, ventilation, and air conditioning systems.

However, ideologies like “work from home” and “work from anywhere” have put a focus on the missing piece in the industry’s stable of stakeholders: the building occupants.

Focusing on the “tenant experience” actually started before the pandemic, thanks to the work environments made popular by tech giants like Google and mainstream office environments provided by work flexible workspaces like coworking spaces.

Productivity is not just related to how long you spend at the office, but how you experience your office and what your workplace can offer you.

Tenant experience platforms are emerging as a way to connect a building and landlord with the people working in it—a metaphorical umbrella for the entire building ecosystem.

The core tenant experience is the sum of every aspect that impacts building occupants during their time in a building.

These can include services and amenities, maintenance and cleanliness, and access control to name a few. Proptech easily and seamlessly bundles these aspects together and provides an integrated, all-in-one solution to the occupants.

Property technology can encompass anything from online portals and apps that make it easier to find and buy property to innovative construction methods and materials that are being used to build more sustainable and efficient buildings.

Blockchain

Blockchain technology is also starting to make its way into the world of real estate. This distributed ledger technology is most commonly associated with cryptocurrencies like Bitcoin. But it also has the potential to revolutionize the way we buy, sell, and rent a property.

For example, blockchain could be used to create a decentralized database of all property transactions. This would make it much easier to track ownership and transfer of properties. It would also make it more difficult for fraudsters to sell properties that they don’t own.

Another way that blockchain could change real estate is through the use of smart contracts. These are contracts that are stored on the blockchain and can be automatically executed when certain conditions are met. This could streamline the process of buying and selling property, as well as renting property.

Augmented and Virtual Reality

We all know how important it is to be able to see a property before you buy or rent it. In the past, this would involve going to an open house or scheduling a viewing. But what if you could do this from the comfort of your own home?

This is where augmented and virtual reality comes in. These cutting-edge technologies are changing the way we view properties.

With augmented reality, you can see property as it would look in real life, with all the furniture and fittings in place. 

And with virtual reality, you can actually walk through a property and get a feel for the space before you make any decisions.

This is particularly useful for those who are buying or renting a property sight unseen, such as overseas buyers or tenants.

It also means that you can view a property at any time of day or night without having to work around someone else’s schedule.

This technology picked pace during the pandemic due to restricted movement. Nairobi Garage also has adopted this by allowing people to take virtual tours of the office space. We have also pre-recorded tours of our five spaces and you can access the tour of our recent CBD Space here.

Internet of Things

The Internet of Things (IoT) is another cutting-edge technology that is starting to impact the real estate world. 

The IoT refers to the network of physical objects that are connected to the internet. This includes everything from fridges and TVs to thermostats and light bulbs.

For real estate, the IoT can be used to create so-called “smart homes”. These are homes that are fitted with a range of connected devices that can be controlled remotely.

With the likes of Alexa from Amazon and Smart Fridges from LG and Samsung, the use of IoT in homes is becoming a huge success and part of our day-to-day.

These technologies are making life so easy in the sense that you can simply adjust the heating from your smartphone or turn on the lights before you even get home.

Apart from that, IoT can also be used to collect data about a property. This data can be used to improve a property’s energy efficiency or monitor maintenance issues.

Drones

Another tech trend that is changing the real estate game is the use of drones. Drones are becoming increasingly popular for taking aerial photos and videos of properties.

This gives potential buyers or renters a much better idea of the layout of the land, as well as any surrounding features such as parks, schools, and transport links.

It also means that agents can show off a property in its best light without having to rely on ground-level photos that might not do it justice. And if you’re selling a property, using drone footage is a great way to make your listing stand out from the crowd.

For instance, Triad Drones is a drone company based in the United States specializing in real estate. It offers customers two main types of drone services: aerial videos for property development and maintenance and photographs for marketing

3D Printing

3D printing is another technology that is starting to have an impact on the world of real estate. This additive manufacturing technology can be used to create three-dimensional objects from a digital file. And it’s not just for small objects – there are now 3D printers that can print houses.

This technology could be used to create homes quickly and cheaply. It could also be used to create bespoke homes that are designed specifically for the needs of the occupants.

For example, a 3D-printed home could be designed to be more energy-efficient or accessible for those with disabilities.

In fact, early this year, our member 14 Trees, a joint venture between Holcim and CDC Group, announced Africa’s largest 3D-printed affordable housing project in Kenya – called Mvule Gardens. 

The project which is still ongoing in Kilifi County in partnership with the Green Heart of Kenya development will see the company build on its world-first 3D-printed developments in Malawi.

Conclusion

PropTech has a promising future and has already started to shape real estate for tomorrow. It is one of the young industries yet one that we will expect to grow dramatically in 2022 and beyond. As the world becomes more comfortable with new-age technologies, Real Estate is likely to expand possibilities, applications, and use cases.