The Real Estate Sector is Transforming With Proptech
Cover Aug 10, 2020
With real estate technologies in its core, PropTech creates significant changes in the sector
THECONCEPTOF“GLOBALVILLAGE”, first introducedby Marshall McLuhan in the 1960s, is now taking up a significant place in our lives under the name of “globalism”. Renowned communication theorist McLuhan proposed that advancing communication technologies would turn the world into a global village. McLuhan’s foresighted theory dating back to at least 60 years ago summarises the world today almost entirely. There are two actors of this globalisation process: Internet and the social media.
DIGITALISATION IS NOW A NECESSITY, NOT A CHOICE
Digitalisation has become a necessity with the Internet reaching all around the world. We can all see how companies that keep up with the digitalising world are much more active in their fields. The novel coronavirus (COVID-19) has affected almost all sectors and brought all life to a halt, causing the world to rediscover digitalisation. When real estate activities, where great importance is attached to one- to-one interactions, were interrupted due to the pandemic, digital methods called “PropTech” came to the fore once again. Meetings were held online with people who wanted to purchase houses. Presentations were made to customers on digital platforms, even bargains were made via video calls. Following the customer’s purchase decision, payments were made online, including bitcoin-style cryptocurrencies.
JUNCTION POINT OF REAL ESTATE AND TECHNOLOGY: PROPTECH
Investments in technology are made differently for each sector. Such as healthtech in health care, insurtech in insurance, and fintech in nance. Based on mobile communication on the Internet and real estate technologies, PropTech brings many differences to the real estate sector. The first stage of PropTech is the Internet, mobile communication, social media, and electronic mail. And the use of such platforms in processes is regarded as the second stage. Elements of the third stage are management and control. Experts divide these stages as 1.0, 2.0, and 3.0.
PROPTECH’S FUTURE LIES IN ARTIFICIAL INTELLIGENCE AND BLOCKCHAIN
The first step of PropTech 1.0 began with a platform established in London in 1982 to sell the results of real estate research. At the same time, a data centre called NCREIF was established in the USA to create a real estate index dating back to 1978. In this way, the first step of real estate technologies was taken. Experts call the current period in terms of the real estate sector as PropTech 2.0. The pandemic process especially showed us how important smart devices and software actually were in the sector. PropTech 3.0, which is regarded as its future, is predicted to be based on blockchain and artificial intelligence.
DIGITAL MARKETING RECEIVED ATTENTION DURING THE PANDEMIC
Lockdowns and international travel bans during the pandemic brought this question to the minds, “How can we attract international investors to the real estate?” Life had to move on even in the face of an important pandemic in human history. Therefore, the sector prioritized digital marketing during this period. Having a powerful website and a social media account with technological trends such as SEO are ideal methods to reach an investor on the other side of the world. It would not be wrong to say that digital marketing will be important to attract international investors after the pandemic period.
INTERNET OF THINGS PERIOD IN THE REAL ESTATE
The Internet of things, which is de ned as the interaction of smart devices, is also preferred in the real estate sector. The most popular of these devices are drones and virtual reality glasses known as VR. Investors now have the chance to see the external structure and the location of the house they want to buy live through drone footages. And VR glasses allow the buyer to examine the inside of the house in detail. Companies that use the Internet of things technology can save their time, keep their interest in more than one project at the same time, and increase their productivity.
SMART HOUSES WILL BE INTEGRATED TO PROPTECH
These technological developments are only some of the innovative features of PropTech in the real estate sector. In fact, PropTech contributes to many important areas such as smart cities and sustainable urbanization. Considering that people will prefer ergonomic houses equipped with smart home systems in the long term, it seems that we will see the concept of PropTech more in the future.
ARTİCLE: CEM EKER