PropTech (also referred to as property technology) is a set of modern technology solutions for the real estate industry. Having its roots in Britain in 2014, PropTech has attracted an increasing number of leading real estate firms.
Similar to FinTech, the innovative technologies merge to streamline and digitalize the property market. They include property portals, software for property management, virtual reality, home automation, Internet, etc.
There are a lot of companies that facilitate the process of property buying and selling through technology. Some of them deal with direct real estate transactions, other property portals guide you through the transaction. Meanwhile, some firms function as advertising platforms.
There are so-called iBuyers, real estate companies that buy and sell properties using technology. They promise that sellers can close on a property in a matter of 10 days. They make aggressive offers, providing liquidity by purchasing houses almost immediately.
The process of buying and selling has a high digital component; however, there are nuances that still require physical presence, for example, notarial issues.
According to real estate expert and proptech influencer Alfredo Diaz-Araque Moro, the use of technology is not yet so widespread in the real estate sector. The awareness and involvement of traditional real estate companies is crucial to enhance the impact of technology on the property market.