Real estate technology, or proptech, continues to disrupt the commercial real estate industry in large part thanks to the efforts of thousands of proptech entrepreneurs and startups, Zain Ventures founder and president Zain Jaffer recently wrote for Forbes. The disruption in the Proptech CRE industry is set to continue as the market, currently valued at $18.2 billion, could grow to $86.5 billion by 2032.
Keep reading to see what Jaffer sees as the top four trends in the proptech industry.
Automation becomes the rule, not the exception
According to Jaffer, automation that improves efficiency is the heart of proptech. Many daily activities of real estate professionals have been automated through various property management and CRM software platforms. For example, real estate agents can use automation to complete common tasks such as marketing, property valuation and closing deals faster, giving them more time to focus on more critical aspects of their business. activity.
“Overall, advancing automation through proptech has been a win-win situation for everyone,” Jaffer said. “Therefore, my advice to new and experienced real estate professionals is to adopt tools tailored to their specific niche as soon as possible. Otherwise, they will be outranked by the competition too quickly.
Virtual reality is a game-changer in real estate
The increased presence of virtual reality (VR) in the real estate industry has changed the way business is conducted, according to Jaffer. The valuation of the global virtual reality market was $27.96 billion in 2021 and is expected to reach $252.16 billion in 2028. 3D and virtual guides, real estate agents and owners can optimize their marketing and lead generation efforts. Meanwhile, developers can leverage architectural visualization to sell CRE properties while they are still under construction.
Virtual real estate has become its own phenomenon and established itself as its own investment strategy. Jaffer noted that it’s possible real estate agents and property managers will find a niche in the virtual world as investors continue to acquire plots of land and virtual properties in the metaverse, a market that is expected to reach a valuation. of $824.53 billion by 2030.
“As someone with interests in the real estate industry, I recommend taking a look at VR and keeping an eye out for where it takes us in the next few years,” Jaffer said.
Big data and AI are getting more powerful
Adoption of proptech is a growing trend in CRE, and within proptech, as is the adoption of artificial intelligence (AI) and big data. A number of proptech companies are looking to use these tools to analyze and collect volumes of data in seconds. This could be useful for CRE investors who want to analyze a particular property or an entire market in moments. This type of analysis took months, Jaffer said. With big data and AI, the level playing field is somewhat leveled for junior investors who typically couldn’t access trades that more experienced ones could make due to their existing familiarity with the market.
“If you’re investing in real estate or planning to, do your research when considering using proptech tools to find the right match and make faster, more profitable investment decisions,” Jaffer wrote.
Split investing opens the door to new opportunities
The emergence of Proptech has also helped increase co-ownership, according to Jaffer. Like big data and AI, condominiums have made real estate investing accessible to almost everyone. Jaffer also noted that he thinks it is better for the industry and relevant stakeholders if access to real estate ownership is less restricted. That’s why he has invested in several companies that allow anyone to invest in real estate for as little as $50.
“Proptech has been on a wild ride over the past decade, and I expect the years to come will be no less exciting,” Jaffer wrote. “I’m sure I speak for many real estate professionals when I say I can’t wait to see what the next big proptech trends will be.”
#Top #trends #proptech #Connected #real #estate #magazine