Blockchain, big data, and artificial intelligence hold great prospects for the real estate sector.
FERMONT, CA: Although the Proptech sector is relatively new, it is rapidly growing. In 2008, US$ 20 million was invested in proptech, according to a survey. In 2018, the figure had reached US$ 12 billion. Real estate investors have realized the value of innovation for the sector and are actively investing in streamlining business operations. Conventionally, real estate included a highly liquid, volatile asset class involving many mediators. The need to tackle the above problems will shape the future of the proptech market. Here are major trends in the proptech ecosystem.
Tokenization and Distributed Ledger
Blockchain is an innovation that is potentially disruptive and aims to change industries across the verticals. Tokenisation is the process by which assets are digitalized into fractional units known as tokens or digital representation. Tokenization involves splitting a property's value into fractional shares. Therefore, tokenization would enable the common man to invest in real estate assets by decreasing investment entry barriers. Tokenization will also allow more liquidity for the real estate sector.
AI-driven Big Data Analytics
In the future, AI has immense potential for proptech growth. Advanced Artificial Intelligence(AI) algorithms allow customers to automate home-search. AI analyzes previous search results of customers and suggests properties with similar characteristics and facilities. AI also helps real estate brokers identify prospective customers and track them. Brokers expend large sums of money on property advertising and marketing. AI will help brokers to maximize their marketing efforts by focusing their efforts on customers with high potential.
The mortgage is a lengthy process that can take weeks to process a loan. Even the applications accepted in the past may be denied by the underwriters. The above problem, however, is being solved by a new generation of software applications that can process mortgages automatically, replacing the slow and tedious manual processes. Real estate companies have begun to realize the value of innovation being implemented to streamline mortgage procedures. AI also has a role to play in the processing of mortgages.
Therefore, technological advances in real estate are about to create a revolution. In the future, Proptech is set to grow exponentially, and investing in it will be a wise decision.
Check This Out: Top Agtech Startups