The Rise of the New Property Technology (Prop Tech)
twitterlinkedinmail

New Property Technology is taking the market country per country and the domain is heating up all over the world. Is it a big bang or a big bubble?

Property Tech – Shaking the bricks and mortar

It was like a huge, orange bubble when I saw it in London – the home of Pi Labs, the first European property focused accelerator located in the middle of a traditional English office complex. Faisal Butt, Pi Labs CEO says that the vision of the company will be to drive the next generation of technological innovation in the Property Sector.

Tech entrepreneurs are setting out to shake up the world of bricks and mortar – but the Property Technology sector has so far received a cautious welcome from an industry which has been slow to change. One of the players taking part to this new approach for technology companies in the domain is Pi Labs.

Property Technology is making room for getting into the mainstream. For example in the UK you can read stories from the pioneers of this space in the press; from tech and property publications to more popular media and it is not without reason why companies such as Cushman&Wakefield has got them selves involved: There is a real user demand for genuine alternatives. The alternatives for lettings and estate agents have been in the first wave of the change, and are getting major coverage in the domain. CRM (e.g. www.propertybase.com) and marketing solutions (e.g. www.realtor.com) are already business as usual.

But what will happen in the property investment and property asset management space?

Is property investments the second wave of the change

Investors worldwide put a record $1.4bn into real estate tech startups in 2014. The US took the lion’s share with $950m; the next-largest investments were made in India, China and Europe, of which nearly three-quarters was in the UK. (Figures collected by startup tracker Crunchbase).

Crowdfunding platforms for property investments is one those domains that have taken a nice cut of total investments in property tech. Crowdfunding offers a way for small investors to become property investor and competing with traditional lenders. Crowdfunding is a way of funding a project by raising small amounts of money from a large number of people, through online platforms. Crowdfunding is time consuming and requires patience, perseverance, and resilience though it can be powerful too.

Crowdfunding has got lot of local and international attraction. Being one the hottest topics in Mipim 2015. Technology companies from Estonia (www.estateguru.com) to Netherlands (www.crowdestate.nl) and from Sweden (www.tessin.se) to US (fundrise.com) are introducing new solutions to the market. These solutions are also making room for new ones.

After shock or the flood gate for the Property Asset Management

Although Property Asset Management market has got new business concepts and small botique players to renew the market, technology revolution or at least evolution has been taking it’s time. Technology adoptation is crucial in the service business that is relying heavily on data. Data has been one of the drivers in Property Asset Management that has introduced new solutions to the space such as Datscha and DealX.

Now the change is still waiting for process optimisation in Property Asset Management industry. Tools that are changing the way the people work. Generation of applications that are integratable with each other – something that Assetti is making possible.

Innovative Property Technologies in the UK market

As my trip to UK was full of start up life, I wanted to pick the most interesting ones in the property tech domain from the UK market. Here are my pick for the most innovative Property tech companies.

1. Virtual View App – the UK’s first mass-market augmented reality property platform

Founded in 2013 out of the startup accelerator Rainmaking Loft, Virtual View App combines digital and printed marketing materials to allow users to access 3D property models and floor-plans, photo galleries and videos by scanning an image. There’s the ability to look at other elements of the property process, such as unique videos to market properties or cloud services that manage rental-related documentation.

2. Splittable – an app to make shared living simple

In the ‘hassle-free’ space, Splittable claims to “make it easy to split bills and track expenses with your housemates”. This innovative application focuses on making shared living easier by tackling the often tricky subject of bills. Claiming to stop arguments before they start, Splittable makes it simple to split bills flexibly while helping users keep track of houseshare expenses.

3. Movebubble – a collaborative site for property owners, agents and renters

The site’s aim is to champion the renter’s needs and in doing so it’s a collaborative site where owners, agents and renters can work together as individuals to streamline the rental process. There’s a huge shift going on with the younger generation coming onto the market. They’re demanding more simplistic, value adding, mobile, cloud based solutions that enable collaboration between end-users, offering far greater levels of transparency.

So, what does the future hold for Property Technology?

There is lot of buzz around property technology both locally and globally. The key for success in property industry is to continually improve visibility and transparency, and to work hard to empower investors and other stakeholders as part of the value chain. That’s why it’s extremely important to get comfortable with new technology to make your business to flourish. As property and technology collide, prop tech is a massively growing part of the real estate industry. Times are a changing, and you know what they say, “innovate or die”.

Assetti® is helping Property Investors and Asset Managers with team collaboration to provide better yields.

Assetti is using the latest cloud technology to simplify the daily work of property investors and property asset managers. As a cloud based solution it provides team and stakeholder collaboration and visualized data available 24/7 for you. Assetti is a registered trademark of Nasta Technologies Oy.