Real estate technology

From Wikipedia, the free encyclopedia
Jump to navigation Jump to search

Real estate technology is a broad term that encompasses the application of information technology and platform economics to real estate markets[1][2]. Because some goals of real estate technology include reducing paperwork or making transactions quicker and more efficient, it is often thought of as overlapping with financial technology. Contemporary digital real estate technologies could therefore include property management using digital dashboards[citation needed], smart home technology[citation needed], research and analytics, listing services/tech-enabled brokerages, mobile applications, residential and commercial lending, 3D-modeling for online portals, automation[3], crowdfunding real estate projects, shared spaces management[4][better source needed], as well as organizing, analyzing, and extracting key data from lengthy rental documents.[5][better source needed]

In the United States, real estate technology is sometimes referred to as CREtech (commercial real estate technology) or REtech (real estate technology).[6] In United Kingdom and Australia real estate technology is sometimes referred to as PropTech or Proptology (property technology).[7][8]

Investment in real estate technology[edit]

There are currently many startups trying to target every segment of the property market chain, attempting to disrupt and improve how the current market players (developers, buyers, sellers, renters, investors, and real estate professionals) design, construct, market, discover, transact and operate real estate. These startups have been supported by seed funding and investment from a range of sources, including some specialist real estate technology venture capital funds.

In the first six months of 2019, $12.9 billion was poured into real-estate tech startups by venture investors, which surpassed the $12.7 billion record for all of 2017.[9] In 2015, real estate tech reached record funding and deals levels, with more than $1.7bn deployed globally across more than 190 deals. This represents a 50% increase year-over-year and a whopping 821% increase in funding compared to 2011′s total. Deal activity also soared, growing 378% with respect to 2011′s total, and 12% year-over-year.[10][better source needed] This investment appeared to increase further in 2017 to £8.5bn.[11]

Residential real estate technology[edit]

Advances in the residential side of real estate technology encompass a number of target areas, but generally aim to reduce friction in the purchase, sale, or rental of a property.[12][13] Areas of focus include finding a home, selling a home, financing a purchase, closing on a property (including valuation, title & escrow, and insurance), managing a property, managing loans, and mortgage lending software.[citation needed]

References[edit]

  1. ^ Guttman, Jonathan (2015). "The Impending Opportunity In Real Estate Technology". TechCrunch. Retrieved 2018-10-10.
  2. ^ Shaw, Joe (2019). "Platform Real Estate: theory and practice of new real estate markets". Urban Geography. doi:10.1080/02723638.2018.1524653.
  3. ^ Fields, Desiree (2018-02-02). "Automated Landlord". City Road Podcast (Podcast). Retrieved 2018-03-04.
  4. ^ Emig, Josh (2016-08-14). "Buildings are Giant Computers - Product Research at WeWork". WeWork Blog. Retrieved 2017-12-13.
  5. ^ https://gomedici.com/property-technology-proptech-fintechs-next-frontier/
  6. ^ Williams, Champaign (2017-11-16). "The Beginner's Guide To CRE Tech". BisNow. Retrieved 2017-12-13.
  7. ^ https://www.sbs.ox.ac.uk/sites/default/files/Press_Office/Images/proptechreport/PropTech%203%20-%20The%20Future%20of%20Real%20Estate.pdf
  8. ^ https://www.smh.com.au/business/companies/proptech-to-propel-property-sector-to-new-phase-20181024-p50bn2.html
  9. ^ Putzier, Peter Grant and Konrad. "Commercial Property Joins Tech Revolution as Spending Soars". WSJ. Retrieved 2019-08-18.
  10. ^ "Global Funding To Real Estate Tech Explodes, With Startups Raising $1.7B In 2015". CB Insights - Blog. 2016-02-17. Retrieved 2016-10-20.
  11. ^ "Global funding for proptech sector grew to £8.5bn in 2017". Property Week. 2018. Retrieved 2018-10-11.
  12. ^ Voices, Valley. "The Future Of Real Estate Tech: How We Got Here And What's Next In An Exploding New Ecosystem". Forbes. Retrieved 2019-01-27.
  13. ^ "Tech firms disrupt the property market". The Economist. 2018-09-13. ISSN 0013-0613. Retrieved 2019-01-27.