COVID-19 has made residential real estate even more crucial than ever, because innovative technologies and the internet have made it possible for employees to work remotely from now on.
FREMONT, CA: From digitising documents to streamlining regulatory issues and simplifying property management, real estate technology has been reshaping the real estate market for years. A recent KPMG survey found that only 58 per cent of real estate companies have a digital strategy in place, which still provides ample scope for innovation.
Executives from three companies, 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, predictions about the state of the real estate market in general were shared. Their businesses reflect the types of technology and innovative platform that proptech is introducing to real estate.
Data will Drive Real Estate Transformation
The data available on real estate can be extremely complex. Landis collects comprehensive property and customer data as part of its diligence process, including audits, inspection records, renovations, bank statements and disclosure forms. Data is rarely standardised and faxes are sent with copies of PDFs at all times.
Tech will Help Streamline the Regulatory Environment
Property affordability issues coincide with strong regulation in many parts of the world, and proptech can help companies. For example, in Massachusetts, security deposits must be kept out of rental income in a separate bank account. For tenants, this is a significant financial burden.Automating this procedure to set up as well as maintain accounts in these regulatory environments makes it much easier to operate.
Virtual Reality is Going to Become More Widespread
With increasing demand for online shopping, it's not hard to imagine that no one's switching anymore because they're all purchased on platforms like Amazon and people are all on a couch linked to virtual reality. This system is going to transform real estate dramatically, and people are almost close to it.
Remote Work will Open up a Few Markets
COVID-19 has made residential real estate even more crucial than ever, because innovative technologies and the internet have made it possible for employees to work remotely from now on. Nowadays, people have more choices about where they want to live, and they don't need to be near the city centre.It will change the areas where people generally choose to live, which will have an impact on residential real estate markets.