What is proptech?

Quite a word, isn't it? If you haven't heard it before, don't worry, in this article we are going to explain what proptech is, what types exist and how it can help you sell your house or rent your flat. 

Real estate is not what it used to be. Gone are the days of those slightly unkempt professionals who showed more affinity with banking than with people looking for a new home. Times are changing and companies are modernising, and this is also the case in this sector. Proof of this is proptech. 

Types of real estate Proptech

This unique term is composed of two English words, Property y Technologyand serves to refer to the use of technology in order to improve, redefine or digitise everything related to the real estate sector. 

If you think about it, it makes sense to invest in technology, as we increasingly use digital media to find our dream home. Who hasn't used a website or a website to find their dream home? app to buy, sell or rent a house?

Proptech has been around since 2000. It was then when initiatives associated with it began to emerge, such as specialised websites or real estate portals completely online. But it was not until 2014, in the UK, that it took the shape it has today. Since then, Proptech has become tangible and has completely changed the real estate sector, bringing innovations that until a few years ago were unimaginable. 

In fact, thanks to Proptech, companies specialising in the rental and sale of housing sales have evolved at a dizzying pace, managing to fine-tune their services to meet their clients' requirements. 

Just as there are millions of people in the world with specific real estate needs, there are millions of people in the world with specific real estate needs. there is different types of real estate Proptech. The main categories are:

Peer to Peer

It is about startups which offer commission-free sales and rental services between private individuals. They rank 17 % in real estate Proptech.

Portals and marketplaces

Undoubtedly, this type of property is the most frequented by people looking for a new home to live in. These companies focus their work on the sale and rental of properties. They are fully digital and have revolutionised the real estate sector traditional. 

Real estate investment

You have probably heard your parents say on more than one occasion that investing in bricks and mortar always pays off. They are not wrong. These platforms are dedicated exclusively to bringing together individuals who wish to invest in property, but in a different way. For example, by means of a collective investment such as a crowdfunding. 

B2B and B2C portals

It's not all buying and renting in real estate. It is also often the case that the services of experts are needed to fix up properties, such as plumbers or architects. B2B and B2C portals are websites that offer such services (B2C) or create synergies between different experts (B2B). 

Despite the difficult situation caused by covid-19, the Proptech ecosystem has grown by 70% this year alone.

Real estate management and software providers

This typology includes all those technological companies in charge of producing software and digital solutions for the real estate sector. For example, CRM platforms, PMS (Property Management Software) o improvements in the development of virtual reality. 

Big Data

The Big Data is responsible for the management of real estate data. Providers that develop this type of software can be found here. Among the most commonly used tools in this modality are geolocation, rating, asset analysis, valuation or appraisal tools.

Product innovation

This typology includes all those companies dedicated to innovation in the real estate market at a digital level. Can you think of any that you know of? For example, the area of home automation, intelligent housing (Alexa or Google Assistant have already become old acquaintances for many of us when it comes to incorporating technology in the home) or the IoT (Internet of Things).

Proptech Technology

With all these technological services, professionals in the sector are able to meet the real estate needs that exist today. Little by little, new Proptech technologies have been gaining ground in our day-to-day lives and are helping us to achieve truly spectacular results. 

Some of the state-of-the-art technologies that are already commonly applied in the real estate sector are:

• The geointelligence is, without a doubt, one of the greatest allies among Proptech technologies. Thanks to it, we can estimate the potential sales of a business. By means of databases, very precise analyses can be carried out by combining all kinds of data (commercial, economic, demographic variables, behaviour of supply and demand in each area, etc.). InAtlas is one of the leading companies in this type of Proptech technology. 
   
• The virtual reality. Through this new technology we offer customers the opportunity to visit a space from the comfort of their home. The augmented reality in real estate allows you to offer virtual tours in which the prospective buyer can learn more about the house they are interested in, without having to travel. 
   
• The CRM, o Custom Relationship Managementare specialised customer service programmes with which the response time is reduced. In addition, information is much more easily managed. Inmovillafor example, is one of the leading real estate software in Spain.

Proptech ecosystem in Spain

As for the Proptech ecosystem In Spain, we could not be happier, as its growth continues unabated. If in 2020 there were around 150 Proptech companies in our country, today the number rises to 256.  

These data are spectacular, especially if we take into account that they are revised and updated every week to eliminate all those companies that disappear and add the new ones. 

Thus, the Proptech ecosystem has grown by a fantastic 70% in this year alone. As part of the real estate sector, we could not be prouder of these figures, because, like all other sectors, we too have had to face the difficult situation caused by covid-19. 

Although the health scare in which we are still immersed has paralysed the real estate market, it has also allowed some Proptech sub-sectors to emerge. Moreover, new technologies are gradually becoming an indispensable part of this sector. 

One of the main sources of information on the Proptech ecosystem is provided by the API school, which offers users an extremely interesting Proptech map connecting new technologies to the needs of the real estate sector.

Change is here to stay. At Monapart we are proud to be part of it. Do you want to be part of it? SELL YOUR HOUSE? ¿Rent your flat? You're in the right place 🙂