"Proptech" can define the future of the real estate sector. This concept covers companies that use modern digital technologies to enhance the value of properties on the market. And it's not just about the construction cost or the final price tag on the product.
In the global investment ranking of the real estate market digitalization, Spain is in second place after the United States of America. It is because “digitalization” has become a more pronounced key player in the market.
Capital discussed the topic of technology in the real estate market with Sonia Bentué, CEO and Chief Commercial Officer of Unlatch España, a digital real estate services company.
José Manuel Cartes, CEO at Libeen, took part in the conversation. It is a proptech company dedicated to the development of a special "#SmartHousing" rental model. Also, Jack O'Grady, COO and co-founder of Colibid, participated in this conversation. This company develops an app for accessing mortgage auctions.
The conversation focused on the conditions and opportunities that had arisen for the Spanish real estate sector after the end of the COVID-19 pandemic.
Buyers and their demand and satisfaction levels
In response to the question about the way real estate companies and professionals react to the growing number of demanding buyers, Sonia Bentué says that the main tool is technological development. It is about attracting more advanced and convenient technologies, highly qualified staff, and modern solutions.
Jack O'Grady adds that adapting to changing customer requirements is an ongoing process. According to him: "The consumer is in a position of power as he has never been before because of the high market competition." Companies have no choice but to adapt.
There are two main ways to do so: whether they improve their product, for example, to save time for the buyer, or whether they improve the experience gained during the acquisition process. In this case, this may include a more comfortable process of selecting and visiting the desired home, working with a bank to issue a loan, and etc.
José Manuel Cartes notes that, today, the only way to draw consumers’ attention is by understanding their needs and providing personal solutions according to specific requirements.
Suggested prices
José Manuel Cartes points out that in order to be successful in the real estate market, one must be a "destroyer". Willing to take chances by breaking the usual rules of the game in a mature and conservative market is the key criterion for success. The product or service should provide a realistic solution to a problem that cannot be resolved by conventional means, or if its solution can cause considerable inconvenience. This approach has earned Libeen great success among millennial buyers, the target audience of the company.
Today, transparency, speed, and efficiency are very valuable propositions in the real estate market. According to Sonia Bentué, competition in this sector should be focused on a high-efficient housing model that can implement the project in the shortest period of time and at the best price.
Depending on the proptech, the final price of the solution may change, but the solution is always based on the same thing: new technologies. According to Jack O'Grady, new technologies create new products and services that traditional real estate agencies are unable to reproduce. This opens up a broad range of opportunities for consumers.
Big data and AI
The use of "Big Data" in the real estate industry reduces confusion at different stages of doing business, when buying land plots, and during construction project development. Sonia Bentué explains: “From a company's point of view, this gives us a chance to know regional supply and demand, average prices, and sales rates. From the customer's point of view, it provides all the necessary up-to-date information for a well-thought-out purchase, for example, about prices and quality.
In the words of Jack O'Grady, artificial intelligence (AI), big data, and deep learning are the future of the real estate sector. In some companies, real-time price forecasts are even modelled based on variables such as the opening of a new supermarket in a specific area or academic performance in local schools, which affects their reputation. Deep learning and AI make it possible to predict price changes more precisely.