Real estate technology
Real estate technology is a broad term that encompasses the application of information technology and platform economics to real estate markets. 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[better source needed], smart home technology, research and analytics, listing services/tech-enabled brokerages, mobile applications, residential and commercial lending, 3D-modeling for online portals, automation, crowdfunding real estate projects, shared spaces management[better source needed], as well as organizing, analyzing, and extracting key data from lengthy rental documents.[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). In United Kingdom and Australia real estate technology is sometimes referred to as PropTech or Proptology (property technology).
Investment in real estate technology
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 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.[better source needed] This investment appeared to increase further in 2017 to £8.5bn.
Residential real estate technology
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. 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.
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