The property sector is on the verge of a major disruption that will change the way we all interact with property services in the years ahead.
Property is the largest and oldest asset class in the world by a long way, and a very significant driver of GDP growth. As of June 2018, Australia’s 10 million residential dwellings were worth nearly $7 trillion.
While the property sector has largely been undisrupted until now, it is poised for a major technological overhaul in the coming years.
Real estate of property technology – which has come to be known as proptech – is coming and already bringing services to the industry that were never imaginable just a few years ago.
The aim of all proptechs is to improve the experience of all stakeholders and unlock the true value of what our real assets can do.
Investment in proptech was US$12.6 billion in 2017, almost triple the amount it was in 2015.
Experts say that while property early-starts up were centered around consumer-based platforms, the new solutions being developed cater for all stakeholder in the industry by creating efficient ecosystems where traditional property companies are struggling to keep up.
Technology is creeping into almost every corner of real estate all over the world, and is changing how property used, developed, managed, and invested in.
Here are some of the biggest technological developments seen in real estate so far.
- Property portals such as Domain and realestate.com.au are now so ubiquitous in real estate, it’s hard to imagine a time when they didn’t exist. More of a disruption to media businesses, they still changed the accessibility of property listings and data for everyone, empowering consumers.
- DocuSign is software that allows digital signatures to be used for real estate documentation.
- Two start ups, Soho and NOKK, allow prospective buyers to target homes that might not be listed for sale.
- The largest property management company in the world is now AirBnB. AirBnB allows owners to rent out their property for cash, enabling owners to generate a cash stream from what is often their largest investment through an integrated ecosystem the company has created where owners, renters and third-party suppliers, such as cleaners and trades, can all interact on one platform.
- Hybrid hotel/short-term rental models, such as WhyHotel or Guild.
- Keterra is a US technology that streamlines the construction process.
- WeWork is a proptech that enables rent arbitrage, you can lease and develop properties at one price, and then rent them out at much higher prices.
- HubHaus and Common, in the US, operate in the co-living space, providing value-added services for long-term rentals.
Change will only escalate
The industry is quickly realising the potential in technology that is out there.
KPMG’s recent report, The road to opportunity, which looks into digitisation of the real estate industry, reveals that 97 per cent of respondents to their survey said digital and technological innovation will impact their business.
The report notes that the benefits of data, automation and artificial intelligence are widely recognised in the industry, but that many more change lies ahead – and the industry has to be prepared.
Artificial intelligence and smart technologies are already changing the way we interact with our homes. The AI technology now available to consumers is improving their experiences, and will increase rapidly over the coming years.
Technology will help improve the efficiency of your home and help you save costs as technology will bring buildings to life and enable the buildings to interact with you.
Beyond Strata is at the cutting edge of technological innovations
Beyond Strata is a Melbourne-based company using cutting-edge and world-first technology to unlock hidden value and give owners complete transparency to their property.
The company is making its presence felt in the strata industry in Australia, but is also attracting attention in the US, Europe and Asia.
Beyond Strata’s aim is to create an ecosystem in which all stakeholders share common values and a set of benefits.
It aims to put property owners in control of their asset, while enabling service providers in the property sector to be proactive and bring a higher level of service to their customers.
We are always looking to collaborate with innovative companies to bring new cutting-edge solutions to stakeholders in a mutually beneficial way.
If you would like to find out more, get in touch with Beyond Strata at phone and website.