PropTech has proved itself to be a disruptive technology. It has caught the attention of industry insiders, right from investors and entrepreneurs to C-suite executives. However, like any tech innovation, Proptech’s success will depend less on the staggering amount of VC financing it has received over the years than on the extent to which owners and operators of real estate assets will adopt it. In the upcoming years, one can expect the funding landscape for PropTech to be challenged and changed. How do key players survive this turbulent playing field?
This comprehensive guide to Cloud PropTech solutions explains the rapid digital transformation of the Real Estate industry. Read on to find out how this can boost value for retailers, engineers, and construction firms.
Trail-blazing PropTech Technologies:
1. Artificial Intelligence and Machine Learning: Trained AI and ML algorithms can predict property valuations and pricing trends. AI/ML allows retailers and businesses to save time by processing large amounts of data, finding properties based on individual preferences, and analyzing safety hazards or construction defects.
2. Augmented Reality and Virtual Reality: AR/VR allows developers and potential buyers to create and conduct virtual property tours, enabling them to experience the final product even before construction begins.
3. Robotic Process Automation: Real estate firms can bank on RPA to automate data-heavy rule-based tasks, allowing resources to shift focus on business-critical functions. Real estate operations such as tenant onboarding, portfolio management, payment reminders, NAV calculations, KYC compliances, maintenance scheduling, work orders, listing management, rent management, etc., can be automated by leveraging RPA.
4. Internet of Things: IoT devices can send alerts and notifications to tenants or property managers in case of a safety hazard or other emergency. They can also keep track of maintenance history, identify potential problems and allow for predictive maintenance. IoT devices help property managers improve properties and provide superior customer experience by offering insights into tenant behavior and preferences.
What do the Experts Say?
The Emerging Trends in Real Estate 2023 report by PwC speaks about ‘cautious optimism’ in the Real Estate sector, where firms are repositioning themselves to ride out the current slump and plan for sustained growth and strong returns. Even with looming uncertainty about the future of Real Estate, the PwC report reiterates that Industrial real estate will continue to remain an expected best bet. Subcategories like warehousing, fulfillment, data centers, and self-storage rank high among survey respondents’ investment and development recommendations. This report is good news for construction firms, retailers, and the engineering industry. Factors such as increasing rents, space, land availability shortages, and the rising need for an industrial property to accommodate onshoring production activities favor growth in these sectors.
Bridging the gap of legacy tech, PropTech solutions like iEstate are a SaaS (software as a service), cloud-based Real Estate Property Management Solution on the Oracle Cloud platform. This solution is beneficial for property developers, real estate companies, and lease management firms to streamline their business processes. PropTech solutions also combat supply chain issues by bolstering the “outlook for an industrial property as users, whether manufacturers or retailers, look to hold or produce more goods locally to differentiate themselves as trusted suppliers. But the pressures affecting real estate, such as rising interest rates, also affect industrial properties. As interviewees noted, this will make it important for buyers to assess opportunities even more closely than before to find the sweet spot of fundamentally good assets that trade at reasonable terms”, the PwC report stated.
Benefits of Cloud PropTech:
Proptech helps Real Estate firms create tailored digital solutions for real estate developers, investors, insurance providers, brokers, and property management companies. PropTech has transformed how customers research, rent, buy, sell, manage, and invest in real estate by facilitating cross-industry technology collaboration and streamlining communication channels.
Here are a few salient features of digital Cloud PropTech that will give you a clear idea of its many benefits:
- 360-degree Property View: Retailers can now virtually see and inspect a potential rental space in a mall or shopping complex, or market from their homes via smartphones. It not only cuts down on time, cost and effort but also smoothens the Real Estate process logistically.
- Facility Management: This feature is beneficial for contractors and surveyors since Cloud PropTech’s facility management services coordinate and manage planned maintenance requests at any property or real estate site with ease. It also allows easy access to cost reporting, property history, and blueprints for each location from anywhere in the world. It also benefits property agents, given the nature of their business and the amount of time on the road.
- Customer Relationship and Property Sales Management: Firms that cater to leads from social and marketing platforms can convert them into actual buyers and deals through Cloud PropTech.
- Leasing and Rentals Management: Cloud PropTech allows property/real estate agents to be the administrators of leasing status, payment plans, collections, and agents. It also enables them to focus on the customer’s challenges, thus ensuring proper customer management. The lease and rental management feature of a customized, digital property management service is the perfect platform for every residential, rental, and commercial leasing and its management.
Property management software like iEstate combines cloud strategy, team collaboration, real-time data access, digital lease/document management neatly, and superior CX to offer an all-inclusive solution. It is handy for firms dealing with areas like property sales, leasing, sub-contractor, and facility management. Overall, a custom-made, innovative PropTech solution enables an excellent omnichannel customer experience and includes features like sales, social engagement, billing, and payment automation.