Real Estate Re-Engineered

‘The Key Role of PropTech Across the Ecosystem’s Verticals’

 

In an age where technology shapes every layer of our lives, the real estate industry is no exception to its transformative influence. The integration of technology into real estate and construction, known as PropTech (Property Technology), is revolutionizing how we plan, design, construct, transact, and manage our built spaces.

By definition, PropTech (Property Technology) is the use of information technology (IT) to help individuals and companies plan, research, buy, sell, rent and manage real estate.

Across four main verticals (Plan, Construct, Transact and Manage), PropTech is delivering immense value by enhancing efficiency, sustainability, value-added, and user experience.

 

 

Historically, PropTech first appeared in the middle 80s when the first computers became available to the public. Since then, PropTech has been expanding its areas of applicability following the growth of available technology. According to an Oxford University study, there have been three main waves,:

PropTech 1.0 (1986):

First personal computers were made available to the general public.

 

PropTech 2.0 (2000):

Widespread use of WorldWideWeb and launch of first property online portals. Use of technology to promote sales of real estate assets.

PropTech 3.0 (2012):

Widespread use of mobile devices, huge improvement in Wi-Fi connectivity, the appearance of first apps, cloud services and so on.

 

We are now witnessing the fourth wave of PropTech 4.0 with AI, blockchain, big data and machine learning technologies becoming available to the public and with businesses and governments making available big data. With this article, we will explore together how PropTech within its different verticals is impacting the property markets worldwide and highlight the significant benefits it offers.

 

Residential Real Estate

In the realm of residential real estate, PropTech is redefining the homebuying journey and customers’ experience. Virtual reality (VR) and augmented reality (AR) technologies enable potential buyers to take virtual tours of properties, making the process more accessible and convenient. AI-driven algorithms streamline property searches by suggesting listings that align with buyers’ preferences, ultimately shortening decision-making time and easing the journey.

Furthermore, smart home technology, within the Manage vertical of PropTech, is transforming living spaces into intelligent ones. Smart thermostats, lighting, security systems, air quality monitoring, waste management, safety, and much more not only enhance convenience but also contribute to energy efficiency and great cost savings.

 

Commercial Real Estate

Commercial real estate (CRE) has been the first market layer to embrace PropTech innovations. Data analytics platforms collect and analyze data on occupancy, foot traffic, and building performance, offering insights to optimize space utilization and enhance tenant experiences. IoT (Internet of Things) devices enable intelligent building management, allowing for real-time monitoring and adjustment of heating, cooling, air quality and lighting systems automatic adjustments, building accessibility, and more.

Tenant engagement apps contribute to bringing communication between property managers and tenants to the next level, enabling quick issue resolution and highly personalized services. Additionally, blockchain technology is being explored for property transactions and lease management, ensuring high transparency of all processes.

 

Construction and Development

All properties in which we live, work, play, and shop have been, are and will be planned, constructed, and fully developed. PropTech, through its two first verticals of Plan and Construct streamlines in a digital manner all steps introducing speed, effectiveness, cost control, transparency, and reliability passed on proactive project management and full collaboration. From Propenomy (data-based demand predictive modelling) to BIM (Building Information Modelling) e-tendering, contract and project management, enable stakeholders to visualize and plan projects more effectively.

 

Drones and robotics are now introducing revolutionizing ways to conduct construction site surveys, inspections, and tasks that are hazardous or labour-intensive. 3D printing, to finish with, is being used to create building components with greater precision and speed, significantly reducing material waste and drastically reducing costs.

 

Property Management

Property management, through the PropTech vertical Manage, is possibly the area benefitting the most from digital transformation. While the other three verticals have short-term applicability, from a few days to less than 8 years, Manage covers the full lifespan of buildings and, can be applied everywhere. 90% of our lives is spent in buildings being them homes, offices, retail, hospitals, army camps, airports, and the list could go on.

Cloud-based property management platforms, fully integrated and all-in-one, centralize data related to lease agreements, maintenance schedules, financial records, accessibility, security, housekeeping, and more promoting better communication among stakeholders and simplifying administrative tasks.

Predictive analytics and AI-powered maintenance systems anticipate potential issues before they escalate, enabling proactive maintenance and minimizing downtime. This results in reduced operational costs and improved tenant satisfaction.

 

ESG & SDG-2030 Made Real

Talking about an unmissable ESG-driven sustainability across all PropTech and RE verticals, the role played by digitalised tools is pivotal in advancing sustainability goals. Energy management systems monitor and optimize energy consumption, reducing environmental impact and operational expenses. Smart sensors and automation technology ensure that lighting, heating, and cooling systems are used efficiently.

The integration of renewable energy sources, such as solar panels, is facilitated by PropTech solutions that optimize energy production and storage. Additionally, PropTech enables the collection of data on resource usage and emissions, helping property owners make informed decisions to decrease their carbon footprint.

 

Malaysia PropTech Association, Not Only An Industry Association

To fully leverage the transformative potential of PropTech and be at the forefront of innovation, as president of the Malaysia PropTech Association, I would like to invite all readers to become part of this dynamic community to have access to a network of like-minded professionals, cutting-edge technologies, and industry insights that will propel your organization forward.

 

The opinions expressed in this article are solely of the author, Dr. Daniele Gambero.
Dr Gambero has been an expatriate to Malaysia from Italy, since 1998 and has more than 40 years of real estate experience. He is the co-founder and group CEO of REI Group of Companies, the Co-founder of Propenomy.com, Athena SmartCities, Aivot Sdn Bhd, and the president of the Malaysia Proptech Association.

In the past 10 years Daniele, as an international and TEDx speaker, has engaged tens of thousands of people talking about Property, Economy, Propenomy, Digital Marketing and Motivation. He is also a bestselling author and columnist in several magazines and mainstream media. You can reach him directly through his LinkedIn page here.