Proptech: what do they offer and to whom in the real estate sector

The entry of real estate tools and services as used at faisal hills

, offered by Proptech, companies like park view city with a high technological component, was a necessity, is currently a fact and will be perfected in the near future.

But who is affected by the emergence of these technologies?

Let's see who the market players are, to see how proptech tools and services influence them:

WHO'S WHO IN THE REAL ESTATE MARKET

Who do proptech offer services to? To individuals, service companies like ichs town islamabad, administrations?

All natural and legal persons, immersed in a real estate buying and selling process of university town islamabad , have needs, seek solutions to problems, improve their buying and selling process or directly improve the profitability of their investment.

Whoever can offer them, will have the business insured.

Simplifying, we have these categories:

BUYERS

• Individuals , both first and second residence: they want to make the right purchase with their home, intended for personal use, turning the property into an enduring asset, in their home. They look for information on the offer on portals, compare home prices similar to those they are looking for and negotiate with the owners, directly or through a purchase representative.
• Freelancers and companies : they are looking for an office, premises or warehouse to carry out their activity,
• Investors and investment funds : they acquire lots of real estate and debt, seeking to maximize investment through leasing or resale.

SELLERS

• Owners : they want to sell at the highest possible price and reducing the tax burden of the sale. They need to know the market situation to set an appropriate price for their property.
• Investors and funds : they seek to exit their real estate portfolios, taking advantage of market cycles.
• Real Estate Builders and Promoters : they look for land on which to build, given the expected demand and they need to market their product before having it built.

PROFESSIONAL SERVICES

• Real estate agencies,
• Servicers,
• Property & Asset Management,
• Appraisers,
• Registrars,
• Notaries,
• Photographers, Video Producers,
• Decoration, Home Staging,
• Marketing and advertising agencies,
• Design Agencies,
• Reform companies,
• Removals and Furniture Storage.

Given the needs of the participants in the real estate buying and selling process, let's go on to describe the solutions provided by proptech companies :

PROPTECH SERVICE CATEGORIES

The range of proptech services is very wide, ranging from real estate portals (already existing in 2000) to new proposals and start-ups, related to Big Data and artificial intelligence .

Each of the aforementioned actors, to a greater or lesser extent, can benefit from emerging technologies, helping them in practically the entire real estate buying and selling process.

All buyers want to know the market better, visit the property and the surroundings, and secure the investment.

All sellers want to improve their assets before other options on the market, giving it visibility to attract qualified buyers, maximizing investment, in the shortest possible time.

Map proptech.es (June 2018)

• Real estate portals : aggregators of real estate offer, both from private owners and companies, and managed by real estate agents and servicers.
• Peer to peer : marketplaces in which the actors operate as equals, either for Rent or for Sale, the most recognizable being those destined for tourist rental.
• Real estate software : computer systems that collect the real estate offer and the contacts that either are owners or want to acquire real estate, facilitating, among other functions, the crossing of supply and demand.
• Real estate management : property management programs.
• Online agencies : real estate companies that carry out their procedures online, providing their clients with digital tools to manage their real estate sales.
• Big data : set of data that, due to their volume, becomes unmanageable without the use of information processing tools. They are usually used for Real Estate Appraisal and Valuation, Rating, Geolocation, Analysis, forecasting and market trends.
• Artificial intelligence : automated systems based on robots, which carry out autonomous learning (machine learning), for a behavior assimilable to the human.
• Virtual reality : tools that allow users to virtually access physical spaces located in another location; There are variants such as augmented reality and mixed reality .
• Investment : platforms that facilitate collective investment in real estate, crowdfunding, offer aggregators, ibuyer.
• Home automation : Technological systems to automate a smart home, integrating with others, such as security, energy management, well-being or communications.
• Mortgage financing : system that allows the automated capture of the data of people who need to finance the purchase of a property (including economic, financial and fiscal), in order to carry out a credit analysis using algorithms.
• Online marketing : methodology for analyzing customers, their needs, how to capture their attention, with services and products to their liking, presented at the right time and place, leading to qualified leads with a high percentage of conversion into customers .

The provision of these tools to each of the participants in the real estate sector causes changes in the scope of functions of service companies.

Individuals have more tools to analyze the market and make decisions, but in turn, companies have more capacity to manage information and improve their services, due to their specialization, knowledge and experience.

HOW CAN THE REAL ESTATE SECTOR BE IN THE COMING YEARS?

The real estate sector in a few  years,  will have perfected the emerging proptech tools, which allow the user to collect information about their property and / or about the real estate market in the area in which they want to buy.

The valuations will be refined, with a greater number of crossed data, which include parameters on the characteristics of the house, the building and its surroundings, but also subjective aspects such as quality of life.

In all cases, the human factor will be necessary to establish an adequate value, adding experience, knowledge of the area and intuition to the analytical data.

The user will have more qualified information to face the buying and selling process, but also the professionals of the sector, with more sophisticated tools and greater scope in the data, which will allow them to have a more accurate vision of the situation of the sector, as well as the valuations.

The main challenge for real estate companies will remain the same, meeting the needs and solving the problems of owners, investors and buyers , especially in cases where, due to the peculiarity of the property, the transaction process is not easy.

Examples of difficult transactions, which require the intervention of a qualified professional, are properties in areas with low demand, high-end properties or where confidentiality must prevail.

In these cases, the intervention of a company specialized in asset management will continue to be required, which can dedicate time, knowledge and resources to plan and develop the sales plan.

Likewise, those investors who want to buy properties in areas with little supply, or that require special characteristics, will also have the support of a real estate expert in the area , who knows all the properties, both those that are publicly for sale, as well as the off-market.

Part of the process of putting a property , especially homes, up for sale will be automatic, extracting the information from existing databases (cadastre, INE, Registry, Notary) and completing it with photographic reports and videos, generated with software that incorporates reality. enlarged, starting from a plane, which can also be recreated with technology.