PropTech, also known as property technology, refers to the application of information technology (IT) to the management and purchase of the real estate by both people and businesses. PropTech leverages digital innovation to meet the demands of the real estate business, just as FinTech focuses on the use of technology in banking.
New York, Feb. 22, 2023 (GLOBE NEWSWIRE) — Reportlinker.com announces the release of the report “Global PropTech Market Size, Share & Industry Trends Analysis Report By End-user, By Property Type, By Deployment Type, By Solution, By Regional Outlook and Forecast, 2022 – 2028” – https://www.reportlinker.com/p06422614/?utm_source=GNW
For players in all phases of the real estate industry, including buyers, sellers, brokers, lenders, and landlords, PropTech is meant to simplify and link procedures. Popular PropTech innovations include software for reporting maintenance, sharing rent payments, and crowdsourcing new real estate projects. Virtual reality software enables website users to visually walk around their homes.
Although it is still a young industry, PropTech is being advanced by the cloud, digital transformation, and technology convergence. PropTech seeks to streamline property administration, increase efficiency, and save costs and time spent on real estate transactions, among other objectives. The distributed ledger technology termed the Blockchain is predicted to contribute to the development of a secure infrastructure for smart contracts, tenant credit checks, and real estate payments.
COVID-19 Impact Analysis
The Proptech Market has suffered because of the COVID-19 pandemic involving industries. Due to the lockdown and societal conventions of distance, major corporations have temporarily ceased operations in many regions. Health issues, orders to remain at home, and economic uncertainty all contributed to a notable decline in house sales in several urban areas. The notion of working from home has hurt residential sales as well as companies who lease office space, in addition to having a negative effect on residential sales. Thus, it is anticipated that the PropTech Industry will quickly rebound despite the negative effects of the COVID-19 outbreak on the market.
Market Growth Factors
Increasing use of IOT in real estate
As more and more gadgets and pieces of technology become linked, the Internet of Things (IoT) is now permeating a number of different businesses. There is no exception to this tendency in the real estate sector. Real estate IoT will make it simpler and more effective for all parties involved to acquire, sell, rent, and manage properties. The Internet of Things is a network of actual objects connected to the internet (IoT). Thermostats, TVs, lightbulbs, and refrigerators are all included. When it comes to real estate, there are opportunities to enhance the selling, purchasing, and management processes by automating different functions. The market for PropTech is predicted to expand as a consequence of the real estate sector’s increasing embrace of IoT.
Global urbanization is increasing
Urbanization has accelerated globally in recent years. The process of more people relocating to urban areas is known as urbanisation. The main cause of urbanisation is migration from rural to urban areas, which increases the size and populace of urban areas. These population changes have an impact on other aspects of land use, economic activity, and culture. Urbanization has historically been linked to important social and economic changes. For example, living in an urban region is linked to higher levels of education and literacy, better health, lower fertility, a longer life expectancy, easier access to social services, and expanded opportunities for political and cultural involvement. Therefore, the adoption of smart home automation technology would expand dramatically as a result of this component.
Market Restraining Factors
Issues with privacy and security violations
To allow its systems to be specifically designed to best suit the lifestyle of its residents, a smart home market assists in collecting information on energy use and bills, movements, purchases, and music preferences, among other things. Smart home devices could be susceptible to simple hacking techniques. Since information about people’s identities, physical safety, health care, and houses is electronically kept in the cloud, there is a considerable risk that hackers may utilise this information improperly. The expansion of the PropTech industry may be constrained throughout the projected period as a result of concerns about privacy and security breaches.
Property Type Outlook
Based on property type, the PropTech market is classified into residential and, commercial & industrial. The commercial and industrial segment showcased the significant revenue share in the PropTech market in 2021. The segment’s expansion is explained by the rising demand for office space and the global trend toward urbanization. In the last many years, there has been a noticeable increase in the usage of cutting-edge technology for property management in the commercial and industrial real estate industry.
Based on the solution, the PropTech market is divided into software and services. The services segment registered the prominent revenue share in the market in 2021. The desire for new rental practices, selling options, and new idea agents & landlord services, among other things, is what’s being credited for the segment’s rise. Professional and managed services are further broken down under the services area. The need for professional services in the real estate industry, such as consulting, advice, and portfolio analysis, is on the rise, which is the cause of the segment’s development.
Deployment Mode Outlook
Based on deployment mode, the PropTech market is divided into on-premise and cloud. The cloud-based segment accounted for highest revenue share in 2021. The increasing acceptance of cloud deployment by a variety of end users, such as housing associations, property investors, property managers, and others, is credited with the segment’s rise. Small, medium-sized, and large organizations are being encouraged to transition to cloud-based proptech solutions by benefits including ease of use, scalability, cost, and a decrease in tenant disputes.
Based on end-use, the PropTech Market is divided into Housing associations, property managers/agents, property investors, and others. In terms of revenue share, the housing association segment led the PropTech market in 2021. The difficulties townships and flats confront, such as collecting payments, carrying out upkeep, and keeping track of renters, are blamed for this expansion. The market’s major participants have been compelled by all of these obstacles to provide solutions for payment tracking, inspections, and transparent and thorough reporting. Using proptech software, affordable housing helps allocate the right rent payments depending on how much the rent payer contributes over government funding.
Based on region, the PropTech market is classified into North America, Europe, Asia Pacific, and LAMEA. By contributing the largest revenue share to the PropTech market in 2021, North America led the market. The presence of well-known players in the area is credited with driving regional progress. One of the most reliable and promising businesses in North America, real estate is expanding. The area is regarded as a pioneer in embracing new technology. The region’s tech-savvy millennial demographic is fueling an increase in demand for smart homes with IoT-enabled devices. In turn, this is accelerating market expansion in North America.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Altus Group Limited, Ascendix Technologies, Zumper, Inc., Opendoor technologies, Inc., Reggora, Inc., Guesty Inc., Holo Builder (FARO Technologies, Inc.), Zillow Group, Inc., ManageCasa, Inc., and Coadjute Limited.
Recent Strategies Deployed in PropTech Market
Partnerships, Collaborations and Agreements:
Sep-2022: Guesty partnered with Steadily, a US-based provider of rental property insurance. The partnership complements Guesty’s damage protection product offering and adds value to the already existing tools on Guesty’s platform.
Aug-2022: Opendoor Technologies partnered with Zillow, a US-based internet real estate company. The partnership involves integrating Opendoor’s e-commerce platform with Zillow’s customer base, thereby benefitting customers. Additionally, the partnership enables home sellers in Zillow to request offers from Opendoor.
Jul-2022: Coadjute partnered with LexisNexis, a provider of flexible technology platforms. The partnership involves streamlining the digital transformation of the property market.
Apr-2022: Reggora came into partnership with Clear Capital, a real estate valuation technology company. The partnership involves providing Reggora with valuation quality control. Moreover, this partnership aligns with Reggora’s mission to offer effective, and transformational solutions intended to enhance the apparaisal process.
Aug-2020: Zumper came into partnership with Matterport, a US-based leader in 3D capture and spatial data. The partnership caters to the demand of both landlords and renters to fully digitalize the whole process.
Jun-2020: Zillow partnered with HouseLens, a US-based visual marketing platform meant for the real estate industry. The partnership provides Zillow’s premier agents with access to HouseLens’ Certified Artist network, thereby positively reshaping the process related to purchasing, selling, and financing homes.
Apr-2020: Zumper came into partnership with LCP360, a Google Street View Trusted Agency. The partnership involves enabling renters to provide a virtual tour of the apartments and combining their services to enhance LCP360’s Panoskin customer experience. Panoskin is LCP360’s virtual tour application.
Acquisitions and Mergers:
Dec-2022: Zillow took over VRX Media, a real estate marketing company. This acquisition boosts and expands Zillow’s portfolio of listing services. The combination would further expand Zillow’s reach.
Sep-2022: Guesty acquired Kigo and HiRUM. Kigo, a vacation rental software company, and HiRUM, a property management software company. The acquisition improves Guesty’s property management platform and enhances its market position. Moreover, this acquisition brings many customers, thus expanding Guesty’s customer base.
May-2022: Altus Group took over Rethink Solutions, a Canada-based developer of property tax management software. This acquisition adds value to Altus’s existing portfolio of solutions by bringing strong customer relationships, and software, and property tax-focused talent. Moreover, this acquisition is an important milestone in Altus’s technology strategy.
Oct-2021: Zillow took over ShowingTime, a US-based provider of showing management and market stats platform intended for the real estate industry. As per the acquisition agreement, both companies will operate individually, which would benefit the industry through a non-complex touring experience.
Product Launches and Expansions:
Aug-2022: Zumper introduced short-term house rental products meant for digital nomads, people in-between leases, traveling nurses, construction crews, etc. The solution caters to the needs of people looking for short-term housing. Through this product, the company aims to focus on flaws for the renter.
Scope of the Study
Market Segments covered in the Report:
• Housing Associations
• Property Managers/ Agents
• Property Investors/ Residents
By Property Type
• Commercial & Industrial
By Deployment Type
o Property Management
o Asset Management
o Sales & Advertisements
o Work order Management
o Customer Relationship Management & Others
• North America
o Rest of North America
o Rest of Europe
• Asia Pacific
o South Korea
o Rest of Asia Pacific
o Saudi Arabia
o South Africa
o Rest of LAMEA
• Altus Group Limited
• Ascendix Technologies
• Zumper, Inc.
• Opendoor technologies, Inc.
• Reggora, Inc.
• Guesty Inc.
• Holo Builder (FARO Technologies, Inc.)
• Zillow Group, Inc.
• ManageCasa, Inc.
• Coadjute Limited
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