How is PropTech changing commercial real estate in 2023?
It is no surprise that the real estate industry is proving to be one of the most lucrative industries across the globe. The global real estate market was witnessed at USD 3.69 trillion in 2021 and is estimated to increase to a CAGR of 5.2% by 2030. Despite the ever-growing market, technological advancements like PropTech are ideal to take real estate to the next level.
PropTech, or property technology is a term that encompasses the use of technology across the residential and commercial property industry. PropTech tools and real estate technology platforms help in the management of deals and portfolios. Simply put, it is a medium that allows streamlined operations, research, selling, renting, buying, holistic decision making and investment in commercial real estate.
In a world of ever-evolving technology, it's essential to use tools that allow you to stay ahead of the curve while investing in office space. In this blog post, we will see how PropTech is shaping the future of the real estate industry.
- Power of Blockchain technology
This distributed ledger technology is spread across various sectors and now it’s also emanating into real estate. In the present day, the application is revolutionizing the means of renting or buying commercial properties. Smart contracts are safely stored on the blockchain every time a transaction takes place. Creating a separate database of transactions and financial disclosures helps in easy navigation of ownerships, transfers, and current statuses. What’s more, the blockchain authentication system also prevents any scope for fraudulence via secure logins with SSL certificates on the platform.
- Embracing the Internet of Things
Another pioneering technology, the Internet of Things (IoT) is changing the face of real estate for the better. When various commercial and residential properties are connected to a single internet network. The concept of “smart homes” can be well utilized through the Internet of Things. It is the era of home automation that runs on a range of well-connected devices and can be controlled remotely. For instance, smart energy consumption, home automation, and security systems are now at everyone’s fingertips. IoT is also useful in data collection which helps in the improvement of a property’s energy efficiency and overall maintenance.
- The World of Virtual Reality
When you buy or rent a property in a different location, you need to go through all the considered parameters to know whether the property is a fit for your needs. It can be done through an open house or by scheduling a property visit. But thanks to technology, you can do it in the comfort of your own home. Here’s when the virtual reality comes into play. They have revolutionized the means of how we view properties. It gives you a walk-through of what a property would look like, from its interior furnishing to the overall vibe of the space. According to a source, 77% of buyers are choosing to have a VR tour instead of a physical visit, 68% are interested in employing VR to explore the look of the furniture, 84% prefer to watch video footage, and 62% would like to proceed with the real estate agent that works on VR technology.
- Ease of Drone Footage
Another real-estate tech trend that is evolving the scenario of property buying and selling is the utilization of drones. For capturing aerial pictures and recordings of large complexes like schools, parks, organizations, and residential properties, drones are getting increasingly in demand. It gives a better view of the overall layout along with any surrounding landmarks. It is also a great way to stay ahead of the competition while showcasing any listing.
There is no doubt that PropTech comes with a promise for better tomorrow shaping the future of commercial office spaces. It leads to improved communication and collaboration within the industry with its cutting-edge latest technologies like data analytics. The investors are better informed and can buy/sell commercial office rentals without any second thoughts. Ultimately, properties like Brigade Spaces have witnessed a higher turnover and occupancy rate in the last few years with exemplary everyday operations and management, thanks to PropTech!
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