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A new wave of Proptech opportunities is emerging to disrupt real estate and waver the underlying core fundamentals on which the industry functions.
Fremont, CA: The new wave of Proptech opportunities is emerging significantly intending to disrupt real estate and waver the underlying core fundamentals upon which the industry operates. This latest wave, and probably the most exciting phase in the history of Proptech, will witness startups that develop the green shoots to challenge these very fundamental principles. And this is where most stakeholders believe the future lies. Let’s go through some of these opportunities that are presented:
Mortgages have always been complicated, paper-intensive, and time-consuming, waiting to be intervened by technology. There exists a large gap, an opportunity for the technology to reduce the typical 30 to 45 days mortgage disbursal cycle to just a few hours or a day. There is also scope for bringing buyers, sellers, and their agents on to a common platform with values and lending institutions. Now is the time to do this. Several lenders across the world are beginning to accept digital authentication and consumer alternate data aggregation as the foundational components of their back-end credit decisioning systems.
In real estate, tokenize means to fractionalize the ownership of the real-world possessions digitally on a blockchain. The potential benefits of tokenization are massive: the most significant reason is introducing liquidity to the ‘illiquid’ asset class. This phenomenon would also enable increased participation by the retail investors, who otherwise don’t have the capital required to purchase an entire property and benefit from such investments. With blockchain in the picture, there is now hope for lower transactional costs related to blockchain efficiencies.
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The success story of Airbnb’s short term rentals strategy and WeWork’s co-working spaces instigated a new wave of technology-based platforms that will assist in facilitating the objectives of real estate assets as a service. It uses the living and working spaces much efficiently, at the same time making them more cohesive and socially collaborative. Since co-living is already making inroads, particularly among those students, young professionals, and first-time renters. There is a way to broaden the trends that are in play here. Consumers, across the world, are moving away from asset ownership to an ‘on-demand’ economy. It is a trend that already dominates the automobile, furniture, heavy equipment, and many other industries, but can it become mainstream for family housing?