The property technology is restructuring the real estate market by introducing digitalization and streamlining regulatory issues.
FREMONT, CA: From digitizing documents to streamlining regulatory issues and simplifying property management, property technology has been reshaping the real estate market for years. A recent KPMG survey found that just 58 percent of real estate companies have a digital strategy in place, due to which there is still plenty of scope for innovation.
Executives from three firms, Landis, Bowery Valuations, and Hemlane, expressed optimism about proptech's resilience during COVID-19 at the MIT Fintech Conference in March. In follow-up interviews, they shared predictions about the state of the real estate market in general. Their businesses reflect the types of technology and innovative platform that proptech introduces to real estate.
Here are four predictions from the companies:
Data will drive a transformation in real estate
The data available on real estate can be extremely complicated.
Landis collects comprehensive property and customer data as part of its diligence process, including appraisals, inspection records, renovations, bank statements, and disclosure forms. Data is rarely standardized, and faxes are sent all the time with copies of PDFs.
Tech will help streamline the regulatory environment
The real estate affordability problem coincides with strong regulation in many parts of the world, and proptech can help companies. For example, in Massachusetts, the security deposits must be kept from the rental income in a separate bank account. For tenants, it's a significant financial burden. In these regulatory environments, automating this procedure to set up and maintain accounts makes it much easier to operate.
Virtual reality will become more widespread
With the increasing demand for online shopping, it is not difficult to imagine that no one is commuting anymore because it is all purchased on platforms like Amazon and people are all on a couch connected to virtual reality. This system will transform real estate drastically, and people are nearly close to that.
Remote work will open up some markets
COVID-19 has made residential real estate even more crucial than ever because innovative technologies and the internet have allowed the workforce to work remotely as of now.
Today people have more choices on where they want to live, and they do not need to be near the city center. It will change the areas where people generally select to live, which will impact the residential real estate markets.