The Development and Prospect of Proptech

In the past, proptech has been accumulating momentum; now, it is finally about to achieve a great deal of savings and change the world at one stroke. We have seen that the traditional real estate is integrating with data analysis, artificial intelligence, internet of things, virtual reality, blockchain and other technologies in a surprising way and speed, which can play an amazing potential in changing the way of investment leasing and operation management of real estate in the future. From the perspective of development, proptech(real estate technology) is a new vocabulary, but it is not a new thing, which can be roughly divided into three stages.

What is Proptech?

Proptech is an umbrella term that’s used for describing various technology tools that are innovative and provide new business models for real estate markets. 

Next, let’s take a look at the development and prospect of proptech.

Proptech 1.0: Tool age

The origin of the traditional real estate industry is the construction industry. Its rapid development benefits not only from the economic development and national level regulation, but also from the continuous breakthrough of science and technology, large-scale mechanization and automation, which have injected strong power into the development of the real estate industry and accelerated the development of real estate.

In 1982, Autodesk launched the famous AutoCAD software for two-dimensional drawing, detailed drawing, design documents and basic three-dimensional design, enabling many construction companies around the world to use computers to assist in the design of housing construction, greatly improving production efficiency. At the same time, for traditional real estate enterprises, the development of science and technology brings more optimization and improvement of production efficiency. The tool attribute of art is the mainstream. Subsequently, with the popularization of computers and the development of advanced manufacturing industry, the development of proptech 1.0 (tool era) has been promoted rapidly, and the real estate industry has gradually entered the scientific era of “electronic” and “mechanization” from the era of “hand painting” and “physical force”.

Proptech 2.0: The information age

Since 21st century, with the outbreak of the Internet era, the real estate industry has also ushered in the spring of proptech 2.0 through e-commerce, social networking, and other technologies. At this stage, Proptech is mainly applied in three aspects: the aggregation and transmission of information, the creation of a more transparent market, and the change of the way of looking house.

Aggregate Dissemination of Information

With the rise of e-commerce platforms such as Amazon and Alibaba, people began to realize the huge advantages of the internet in information dissemination. Some operators in traditional fields began to set up their own product yellow pages on the internet, including real estate enterprises. At this stage, if the real estate enterprises in traditional fields change the way they used to distribute flyers and buy newspaper pages, they will transport by using the internet and e-mail to promote the development of their own houses, so that make it possible of the coverage of information from local to national and even global. This change also makes “cross regional” purchase possible, which has played a positive role in promoting the prosperity of real estate.

Create a More Transparent Market

With the continuous development of economy and society, the flow of people between cities and countries is more frequent, hence the process of urbanization is also advancing rapidly, which lead people’s demand for houses increasing. At the same time, with the rapid development of data transmission, network payment and other technologies, some “technology entrepreneurs” began to penetrate and transform some links of traditional real estate now such as Chain home, SouFun and other professional real estate trading platforms. These platforms are not “real estate developers” in the traditional sense, but gradually break through the selling barriers of traditional real estate enterprises by their own technical advantages and user resource advantages, becoming a key link for the real estate projects, and also creating a more transparent market for buyers.

Change the Traditional Way of House Viewing

Technology is always the promoter of social progress, although sometimes the original intention of technology may not lie in this. Technology entrepreneurs sometimes want not only to transform an industrial link, but also to open up a new area. With their promotion, the “sharing economy” has been widely accepted by people. Houses can be separated or shared. Independent offices, shared coffee rooms and meeting rooms have become the norm in some cities. With the popularization of AI, UAV, artificial intelligence, Internet of things and other modern technologies, a large number of start-up companies have emerged in the fields of virtual house watching and remote management, and science and technology are gradually changing our house watching mode.

Take IDEAMAKE as an example, covering 60% of Top 100 developers in China, helping real estate developers to solve the problems of developing customers and online house viewing, IDEAMAKE has been the biggest winner in China’s real estate digital market. The company was established in 2011, providing a closed-loop digital solution integrated with Offline Display, Online Dissemination, and Data Analysis, including 3D Architecture Visualization, 3D Master Plan, 3D Floor Plan, 3D Exterior & Interior Rendering, 3D Walkthrough Animation, 3D Virtual Tours, Mobile Hometour link, and Visitor Tracking System.

Based on a deep understanding of the property industry, IDEAMAKE has completed and delivered more than 1500 projects, and its expertise has spanned the globe including the USA, United Kingdom, Dubai, Australia, Malaysia, Thailand and so on.

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