The emergence of disruptive technologies that drives the innovation in the real estate industry is known as Prop Tech. The traditional real estate industry may be disrupted by the emerging technological innovations however historically the industry has been very resistant to adopt modern technologies and revolutions in the market. The property market is mainly divided into residential property, commercial property and agricultural property. There are mainly four functional dimensions of this industry which include sale, rent development and management of the real estate properties.

However, there are three prop tech verticals which can be defined as

• Real estate fintech,
• Sharing economy and
• smart buildings/ smart cities.

Real estate fintech explains the use of financial technology in the real estate market.

Sharing economy suggests the ideas of shared workspace, shared warehousing and other increased lending between individuals. For example Airbnb- alternative of hotels, Wework-shared office spaces, shared warehousing and Peer to Peer lending.

Finally, Smart buildings/ Smart cities refer to any type of infrastructure that uses sensors and automation technologies to control physical operations of the building like HVAC, lighting, security, etc, basically pertaining to energy saving.

The industry of finance is not the only industry that has been disrupted by Fintech, Real estate industry has also faced drastic changes due to the emergence of these technologies.

Technologies that drive the development of prop tech include the following:

●       Blockchain

●       Big data and predictive analytics

●       Virtual and Augmented Reality

●       Artificial intelligence and Chatbots

Blockchain

The innovation in the real estate industry shall be driven by blockchain technology. Blockchain shall open up many possibilities such as having transparent transactions which shall benefit the buyer as well as the seller. Moreover, it shall allow the industry to move from real-time ledgers to full-on shared databases and processes.

However, the question arises whether the cost associated is worth it or not? This question evolves mixed reactions from the agents however there’s a lot to learn and analyze before the adoption of the blockchain technology into the business processes. Blockchain activities are best addressed by seeking companies that provide solutions that are important to you While there are many articles about the security risks of blockchain and cryptocurrency red flags, the reality is, blockchain will allow added protection and transparency that commercial real estate has never seen.

Secondly, imagine determining undeniably about who previously owned the property and then be able to record it with absolute certainty about the new owner and having the possibility to refer back to the blockchain any time in future in order to check all the previous owner. Blockchain technology shall ease the process of recording data and provide efficiency when compared with the PIN system. Finally, the most fascinating part about blockchain in land contributing is the auxiliary market that will shape. It will eventually unite a system of land supports into a sorted out and effective commercial center. This new commercial center will permit supporters to raise capital more efficiently, which should open up a greater open door for new speculation dollars to enter the space. Innovation is changing the substance of the land business.

From computer generated reality to chatbots, development is driving deals and making a superior encounter for homebuyers. These mechanical progressions likewise make realtors’ employment simpler and increasingly effective, in this way permitting them to serve more customers than any other time in recent memory. Operators must stay aware of the occasions and remain educated about the most recent innovation patterns to remain serious in a rapidly evolving industry.

Examples of firms using blockchain:

●       PropertyClub

Location: New York.

How blockchain is being used:

PropertyClub utilizes blockchain to refine the manner in which individuals showcase, scan for, purchase, sell and put resources into properties. Utilizing smart contracts, the organization leads land exchanges carefully utilizing digital forms of money like Bitcoin or its own PropertyClub Coin (PCC).

 ●       Meridio

Location: New York.

How blockchain is being used:

Meridio permits commercial property owners to sell advanced portions of their land. The organization’s foundation interfaces individual and corporate speculators with landowners who are hoping to sell segments of their proprietorship.

 ●       Harbor

Location: San Francisco

How blockchain is being used:

Harbor is a consistent stage for tokenizing private protections, including land. The organization is tokenizing land resources, including reserves, private REITs, building proprietorship and land to expand liquidity and straightforwardness of the market.

●       The bee token

Location: San Francisco

How blockchain is being used:

The Bee Token is adopting an alternate strategy to conventional land with its blockchain-based home sharing stage. Reasonably like Airbnb yet with a major blockchain curve, the Bee Token empowers mortgage holders to lease their whole house or individual rooms in return for cryptographic money.

Big Data and Predictive Analytics:

On the off chance that you need to beat the opposition, fusing information and examination is a fantastic spot to begin. How often have you demonstrated to customers a house that checks all their containers, yet they despite everything don’t appear to like it? Frequently, purchasers don’t have a clue what they need until they see it. That is the place enormous information and prescient investigation become an integral factor. Since about everybody utilizes innovation, there is a monstrous measure of data being produced and gathered each day. Specialists can utilize this information to help coordinate houses with purchasers, anticipate market and value patterns and in any case, show signs of improvement read on the condition of nearby land. By getting-together over a significant time span information, they can foresee shopper conduct and tight down choices, keeping you one stride in front of the opposition. Prescient investigation encourages that you should show the buyers future value projections for explicit properties and neighborhoods. It can likewise coordinate purchasers to explicit postings and assist you with focusing in on mortgage holders who are well on the way to sell their homes Here are five different ways prescient investigation that can change the land business

●      Upgrading purchaser search

Demonstrating how purchasers may be acquainted with new neighborhoods or home styles when they are indicated properties that coordinate their way of life instead of their hunt rules.

●      Arranging and selling new development

By utilizing prescient examination, manufacturers could distinguish examples of effective nearby turns of events and work to imitate those outcomes.

●      Business extension

Utilizing prescient examination, you could survey everything from nearby turnover to operator to-purchaser proportions in various zones to decide the following hot markets that fit your strength or brand. While choosing a particular office area, you can even dissect neighborhood driving or strolling examples to discover an office with the most bystander traffic.

●      Financier enrolling

Prescient examination can recognize the character types, instruction levels and even the present employments of people who might make amazing operators.

●      Home improvement ROI

Prescient examination could dissect the updates and enhancements of nearby homes to recognize the kinds of properties that neighborhood purchasers will pay more for, or the condition they expect at a specific cost.

Virtual and Augmented Reality:

The decision-making process is being revolutionized by the vivid advanced innovations for example, Virtual reality (VR), Augmented reality (AR) and mixed reality (MR). Customarily the computer games and media outlets have driven the route in virtual plan, however now different businesses, for example, the land segment are beginning to join thoughts from media outlets so as to assemble the bleeding edge, vivid encounters for their customers.

Land industry is utilizing this best in class innovation to convey pictures and diagrams progressively. Regardless of whether it is making a 3D model of a property or giving inside and out data about it, AR innovation causes everything to show up genuine and intelligent. There are plenty of reasons why AR is getting incredibly well known. With increased reality, customers can visit a property wherein they are intrigued all alone from their love seat. This saves time on a specialist’s timetable, sparing the organization time and assets in general. This innovation offers purchasers and speculators the opportunity to investigate a structure remotely, it permits clients to investigate a long way past the general region, allowing them the chance to see the outside of a structure, its grounds, and thecity around it.

These points of view can assist purchasers with seeing how a property looks, feels and fits in with the encompassing design, its area according to nature and how it is bolstered by nearby foundation. For example, with this technology, you could pass judgment on the separation between your front entryway and the closest train station or perceive how your structure’s façade looks from a separation.

Artificial Intelligence and Chatbots:

With respect to real estate, several organizations have begun to utilize AI and chatbots to build deals and improve results by understanding the client’s needs. Artificial intelligence and chatbots can be down changing advancements for the land business. The AI innovation has just brought such arrangements as driverless vehicles and keen streets that totally changed the coordination segment. When a customer communicates enthusiasm for a property, you’ll need to react rapidly. However, it may not be feasible for you to be online constantly, reacting to an endless convergence of requests. Fortunately, with the assistance of man-made reasoning, you don’t need to. Chatbots and menial helpers can respond to inquiries in your nonappearance or consequently ready customers of updates. Along these lines, clients have the fundamental data to settle on a choice at whatever point they’re prepared, day or night. This tech additionally permits you to become acquainted with your clients before you even meet them. With AI, you can pick up knowledge into their manners of thinking and inclinations by perusing past messages. Hence, you can plan and research potential postings before reacting by and by. At the point when you do talk with them, you’ll have the option to take into account their particular needs and interests right away. Finding the correct open doors as the correct land properties is a tireless issue in land. To a limited extent, this is on the grounds that there is such a great amount of data out there that it very well may be a genuine test for even the best realtors to process the entirety of the conceivable outcomes that exist. Be that as it may, it ought to likewise be noticed that coordinating land properties to the individuals who need them is neither basic nor direct, which is the reason realtors need significant instruction just as experience to convey steady outcomes to their customers. Luckily, one way that man-made brainpower can help is coordinate land properties with the individuals who need them dependent on the attributes of those land properties, as appeared by the case of Every Home, which is a Seattle-based startup that has made a product called CityBldr intended to enable business engineers to discover what they are searching for by looking at more than 180 factors. In synopsis following are the ways AI and Chatbots are upsetting the land business

●       Property Management

 ●       Virtual Assistance 24/7 – Chatbots

 ●       Deal Matching-finding The Right Property

 ●       Construction Automation

 In any case, regardless of whether computerized reasoning neglects to supplant realtors through and through, it appears to be plausible that it will enormously affect realtors as well as land customers by improving the viability and productivity with which land administrations are given just as the greatness of the land administrations got by the individuals who need them.

 Conclusion:

Innovation is changing the substance of the land business. These innovative headways likewise make realtors’ employment simpler and progressively productive, in this manner permitting them to serve more customers than any other time in recent memory. From computer generated reality to chatbots, development is driving deals and making a superior encounter for homebuyers.