The factors that have brought a paradigm shift in the PropTech Industry in 2019 are explained
FREMONT, CA: The increased participation of incumbents and their strive to explore new arenas of possibilities have resulted in the significant development of PropTech in 2019. Tables have turned in the PropTech sector, with the key disruptors giving utmost priority to the development of real estate business, both quality-wise and digitally.
The most jaw-dropping changes that are seen in this respective industry in 2019 are:
• Transforming Mindset Of Real Estate Incumbents:
In early 2018, A KPMG report revealed that more than 56 percent of the global businesses have marked themselves as average or below average in terms of digital maturity and innovation. Even though the progress is slow, the following year has displayed a paradigm shift in the mindset of the real estate incumbents. The trends have showcased an increase in creative and innovative strategies, along with the implementation of digital practices. Many companies have pushed their employees to equip themselves with newer technologies for the provision of smooth transactions in the field.
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• Mergers and Acquisitions:
Consolidation within the industry in the form of mergers and acquisitions is a sign of growth in the PropTech sector. Real estate enterprises are collaborating with the correct consulting firm, startups, and have exhibited phenomenal development. This way of focused methodology assists clients in fulfilling their target synergies, streamlines the technology infrastructure, and implements an efficient pre and post transactional model. This formula has proven helpful in 2019.
• AI and Machine Learning:
Aggregation of data is one of the most unique features of the new PropTech space. There is a vast scope in the data sharing principles, primarily when the private and the public realms interact. Having been on the top of the priority list, AI and ML are expected to become the underlying catalyst technologies for the future.
• Unhindered Investment Growth:
Latest proptech surveys are unanimously pointing that there is a significant surge in the number of PropTech investors in 2019. The expected margin that will be reached by the end of the year is around $20 billion in investments.
• Proprietary Investment funds:
The real estate incumbents are well informed about the advantages of being an owner or shareholder of a real estate-based startup. To be the owner of a startup means to possess unlimited opportunities like customizing and building the solutions accordingly. For reasons listed above, and several other lucrative ideas, some real estate companies have created proprietary investment funds to kick start their digital strategy.
Large investments in smart technologies is one of the most popular trends the proptech industry is entertaining now. By implementing the smart technologies on a full scale, for real estate as a service, significant players in the industry are focusing on facilitating the delivery of the real estate components with major sophistication. The idea is to incorporate both data analytics and IoT for hardware and software. The technologies, when jointly applied, will uplift the customer experience management, bring the deals into life, and simplify the entire process.