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What's a PropTech?

Three to four years ago nobody really knew what a PropTech was, mainly because the definition is often described as vague. Based on the words property technology, if we were to simplify the definition, we could say that a PropTech has as a sole purpose, to improve the real estate sector through digital

transformations by using new technologies. We have entered an era of modernization, where the use of said new technologies has become a common thing and the word and the meaning of a PropTech has taken a new turn. But, every so often, people still confuse PropTechs with other forms of companies (Fintech, HealthTech, AdTech…) and don’t know that PropTechs are specific to the real estate market.

In short, PropTechs, such as VRnow, are innovative companies that have as a business model the goal to optimize processes and services in the real estate market. The real estate market is known for being a ‘pen and paper’ business, often relying on inefficient and “old school” methods for doing business and keeping records, technology has begun to help reshape the industry. PropTechs offer their services in many different forms, it can be software, hardware (drones, sensors), materials (improved solar panels) and a lot more.

Market and goals

Why are big companies interested in PropTechs? There are a lot of things to gain from the automatization processes PropTechs are offering. Because PropTechs are considering technological and mentality changes in the real estate industry, their evaluation and analysis are often accurate and are very well integrated into the current trends and needs – in this case – of the real estate industry. For an example at VRnow we are able, by monitoring the markets needs and new consumptions patterns, to help big companies to have a more transparent, accurate and efficient way of dealing with the different processes in the real estate life cycle. The gains are endless but can be narrowed down to three main pillars:

  • revenue maximizations (through cost savings)

  • time-saving

  • better plannability

Quick summary

There are a lot of sectors in the real estate life cycle and PropTechs are trying to find meaningful solutions for all of them, these are the main areas:

  • Construction management

  • Planning and development

  • Property Management including service

      and facility management

  • Evaluation

  • Selling, renting and purchasing

  • Investing

 

Our algorithm can be used throughout the whole real estate life cycle, beginning from the construction management to the tenancy of buildings. With the use of the automatization process, companies can save 12-13% of the total costs of renovation or service requests, mainly because they can reduce their budgets on building planners as they get a complete and transparent overview of all their assets.

These automatization processes are only happening because of new technologies. In the last couple of years, they have proven to be crucial to improve efficiency in already established markets, these are the technologies and tools PropTechs are mostly focusing on:

  • Smart buildings/IoT

  • Big Data

  • AI (deep-learning and machine-learning)

  • Blockchain

  • VR and AR

  • Robotics and drones

  • 3D printing

Whereas PropTechs are solely concentrated on the digitization of the real estate sector, there are a lot of other kinds of companies who are digitizing other markets like FinTechs for an example, who are concentrated on the financial market. Even though they are all very different they work closely together, mainly because all of these companies are focused on the same thing: the automatization and digitization of business processes mainly in order to revolutionize and optimize workflows.