The Tech Behind Proptech

We have been hearing a new buzzword on the street: Proptech.

Yet most of us aren’t aware of this not-so-recent phenomenon. But what exactly is Proptech? Why has it been such a news item lately? What does Proptech mean for real estate professionals? Who will be affected? What are the issues at stake?

Up until, 5 years ago no one talked about Proptech. Yet, many real estate startups were already gearing up to disrupt the industry. A few of them have been doing it for a long time; others are still trying and will keep on trying. But today the landscape has changed.

Proptech is the talk of the town.

So what exactly is Proptech? Proptech

is one small part of a wider digital transformation in the property industry. It considers both the technological and mentality change of the real estate industry, and its consumers to our attitudes, movements and transactions involving both buildings and cities. In short, it stands for all the companies that are taking on the real estate industry to make it better, spurred by an ever-changing digital landscape and new consumption patterns.

The Tech Behind Proptech

The makings of Proptech began in the mid-1980s, marked by the founding of companies that provided software for the commercial real estate industry. Even until the mid-2000s, Proptech didn’t really spring to life when cloud computing, broadband connectivity and mobile devices came into the picture. However, since the mid-2000s, more and more Proptech startups have been bringing new technologies to market that address a wide variety of inefficiencies, scoring more attention and capital.

In recent years, it appears the rapid rise of smart real estate technologies, such as IoT(networked sensors, devices), Blockchain, Artificial Intelligence etc. have begun to change the landscape very quickly. Proptech thus captures the intersection of real estate and technology.