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PropTech and Its Ripples of Development
Co-working and co-living spaces, gated community security solutions like MyGate and Alexa are some of the key components of proptech. Proptech has seen a wave of development and appears to be hungry for much more
Fremont, CA: Proptech uses innovation and technology to design solutions that disrupt the real estate sector. It can be software, hardware, materials of construction, or manufacturing techniques. The term originated in the late 1980s with the rise of the internet.
The consecutive wave of proptech was fuelled by venture capitalists backing among the start-ups in the same field. As stated by Bernard Tong, CEO of EdgeProp.sg, the proptech 2.0 comprises of four key drivers. The four drivers are data-based analysis, shared economy, real estate fintech, and blockchain. He says, “Data mining is trawling in-depth data and making use of the data by organizing them. While the sharing economy describes tech platforms that facilitate the use of the property.” Co-living and co-working spaces are considered as shared economy proptech.
The latest update is proptech 3.0, which is emerging to provide services in the real estate sector, supported by technology.
Technologies Utilized in Proptech:
Artificial intelligence (AI), Intelligence Augmentation (IA), Machine Learning (ML), Deep Learning (DL), Blockchain, Big Data Analytics, Computer Vision, and The Internet of things (IoT) are the fundamental technologies utilized in proptech startups.
Scale and Penetration of Proptech Market:
The investments in the proptech sector have been on the highroad, rising its way to becoming a multimillion-dollar industry by 2011. The proptech industry, which was valued at 186 million USD in 2011, rose to a whopping 2.67 billion USD by 2016.
Even in India, Proptech has become a hot proposition. According to a report by JLL, “The Growing Influence of Proptech,” India possesses the highest number of proptech start-ups (77 of 179 funded proptech start-ups) in the Asia-Pacific region.
An Indian proptech start-up, Oyo Rooms belongs to a part of the coveted ‘Unicorn’ club. It has also extended its operations worldwide.
Traditional Players Betting on Proptech:
Conventional real estate players are enforcing modernization in real estate and are betting on proptech. A major real estate player from South India, Brigade Group, has created its start-up accelerator program for proptech start-ups named Brigade REAP. The first group was launched in October 2016, and the courses have mentored 24 start-ups ever since and interacted with more than 2,000 startups.