PropTech: the new wave of real estate

“There is nothing more powerful than an idea whose time has come.” Victor Hugues

“There is nothing more powerful than an idea whose time has come.” Victor Hugues


The real estate industry is going through a stage of transformations with the irruption of PropTech.


As part of the digital revolution in the real estate industry, PropTech involves changes in the use of technology and in current business models, thus impacting the life of its consumers and their daily experiences.


Its range of applications is broad: from commercial transactions and construction aspects to the development of smart cities.


Thousands of startups already offer innovative solutions and products that are changing business models around the world. In the words of Steve Weikal, from the MIT Center for Real Estate, “we have seen the tsunami of startups dedicated to PropTech since 2014 to this date; while five years ago there were less than 12 companies, in 2019 there are more than 7,000”.


The goal with this technology is to improve industry practices to offer new patterns and service experiences to the users, turning part of the value of real estate from a material model to an intangible one. In this sense, many of these disruptive companies use tools such as machine learning and artificial intelligence to better interact with their clients based on their behavior.


Some of the PropTech startups use models applied in the residential sector – technologies to connect buyers and sellers, leasing platforms, among others – and include examples such as Homie (Mexico), Quintoandar (Brazil), Alquilando (Argentina); on the other hand, in the online property purchase scheme there are others such as Loft (Brazil), Opencasa (Chile) and Habi (Colombia).


Below are other companies that successfully operate with these technologies:


Kiperfy (Latam): condominium administration and community creation from a smartphone.


SiiLA (Latam): online platform with information about the market, transactions and valuable data for the institutional real estate segment.


OpenDoor (United States): application that, based on a robust algorithm for online trading of real estate, generates offers in under 24 hours.


Briq (Mexico): crowdfunding for real estate projects from $200 USD, with an attractive return and clear guarantees.


Yals (Mexico): reliable appraisals of properties online.


In the face of the new scenarios of uncertainty that are ahead, the digital transformation of companies in the real estate sector will accelerate even more. Undoubtedly we live an exciting time where the technological revolution and our ways of life are experimenting a mutual interaction and influence that will cause change at an unprecedented scale and pace.


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