The economic value of global property is absolutely huge. According to British property experts Savill’s, global real estate value reached $280.6tn by the end of 2017, and current house prices are rising the world over, according to the Economist. Property is simply a fundamental market to the business of human day-to-day life; it will always be relevant. However, the systems behind property sales and marketing are often outdated. With the dawn of proptech, this is all set to change.
The most simple changes are coming at the forefront of real estate – the consumer interface. As The Home Loan Expert (https://thehomeloanexpert.com/) outline, online realty is taking off in a big way and is benefiting the customers. Indeed, a TechCrunch analysis of the bulk of venture capital investment into proptech highlights just how valuable this sector is. What’s more, the use of digital tools and tech in residential planning and innovation is, arguably, pulling disadvantaged people out of poverty.
A major barrier to people looking to own their own home is fees. Deposits can often be easy to save for, and a liberal lending environment means mortgages can be opened with relative ease. All of this is underpinned by good interest rates. The problem is fees; what realtors demand, and what the state demands, can put undue stress on the buying process. The Business Times highlights the huge $3bn IPO of Doma, which has aimed to streamline and automate the process, removing bloat and the fees associated with it. This will help people get out of rented accommodation and into their homes sooner.
What of the large real estate investors? Proptech is making a splash in the market for them, too. Reuters highlight the sometimes controversial use of proptech in creating property values. Simple measurements, like the amount of traffic flow in an area and the level of greenery month-on-month, can help investors to spot rapidly improving areas long before their prices shoot up. This, in turn, can lead to the quicker building of smart, good quality housing.
In that sense, proptech is improving the market for everyone. It is reforming age-old processes and making them friendly for everyday people and the common investor. This can only be a good thing in a world where the need for housing continues to increase, as do the resources of people looking to get on the ladder.