Residz Team 3 min read
As Gen Z and millennials want (and expect) their smartphones to run their lives for them, proptech is rising up to meet them.
Proptech has been described as the ‘tech tools’ for the real estate industry. Proptech really came to the fore during the pandemic when real estate and property professionals, buyers, sellers and renters were forced online to do all their research and transactions.
One Proptech CEO Fatima Dicko of Sugar told Crunchbase how far it could go. She says there’s an increased demand from Gen Z for “digital solutions to pay rent and unlock doors, along with touring properties and signing rent agreements virtually.”
Proptech is already a $21 billion industry and Gen Z will ensure the only way is up.
In this article we look at what a proptech company is, types of proptech, the best proptechs in Australia, and how proptechs solve problems.
Contents:
What is a proptech company?
Is proptech and retech the same thing?
What are the types of proptech
What is the difference between a B2B proptech and a B2C proptech?
Who are the best new proptechs in Australia?
5 key trends in how proptechs are solving problems
What is a proptech company?
A proptech company (property technology company) is one that marries information technology, artificial intelligence, platform economics (such as ‘digital matchmaking’) and the real estate market. It bypasses or enhances the work of the traditional real estate industry.
During the pandemic, proptech became more visible as it allowed property buyers, sellers, renters, investors, and owners to research and transact all aspects of the real estate market online.
Proptech companies exist across the real estate industry, and by offering more data, greater choice, a cheaper service, and direct ‘matchmaking’ capabilities for businesses or consumers, they are disrupting the world’s biggest asset class - property.
Is proptech and retech the same thing?
Proptech is known more widely as ‘real estate technology’, ‘retech’ or ‘ReTech’ in the U.S. In 2021 there were 2234 retech companies in the U.S. alone. According to unissu, around 60% of those U.S. retech companies are working in the residential sector, 49.8% in the commercial sector, and 11.5% in retail. The three most popular cities for founding retech companies are New York, San Francisco, and Boston.
What are the types of proptech?
There are dozens of sub-types, but the two main types of proptech are CREtech and REtech, namely commercial real estate technology and residential property technology.
Residential proptech deals with property search, real estate listings, financing tools, property management tools, and mortgage lender software.
Commercial proptech covers such things as property search, construction management tools, evaluation and financing, and asset utilisation tools. (Source: AscendiX)
How big is the proptech industry?
According to Crunchbase, venture-backed companies in the real estate and property tech space raised nearly $21 billion in 2021, with construction and property management spaces named the ‘standout sectors.’
Who are the best new proptechs in Australia?
There are dozens of new and growing proptech companies in Australia, offering a range of services for all players in the property industry. Here are some of the best new proptechs that are streamlining services for buyers, sellers, and renters.
5 key trends in how proptechs are solving problems
Industries are only disrupted if the disruptors clearly solve problems for consumers and other stakeholders. So we thought we’d share Proptech Association of Australia’s President Kylie Davis recently-made and thoughtful observations on 5 key trends in how proptechs are solving problems:
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