What is proptech and how is it changing the real estate sector in Spain?

The era of digitalization is a breakthrough in all areas of work. The use of technology has become an important tool for many sectors, and the real estate sector is not far behind. Among the technologies implemented by this sector, proptech stands out. To learn more about proptech and how it has been revolutionizing the real estate sector, stay until the end of this post.

What is proptech?

Proptech is the new term used in the real estate sector and is the result of technological advances in the sector. It refers to all those companies that use technology to improve or reinvent their services in this field.

The union of prop (property) and the suffix tech (technology) has created this concept that refers to how this technology can be applied to sales and revolutionize the sector. This has also been demonstrated in the report Trends in the real estate market in Europe 2021, prepared by PwC and Urban Land Institute (ULI).

According to the Associations and the Association of Realtors, by 2020 proptech was present in a total of 256 companies. This means that this technology is transforming the sector. Surprising investors, competitors or consumers with its innovations.

It is through proptech that it is expected to provide a more transparent and agile service throughout the real estate sector, including builders and asset managers. 

The idea is that, in a world where Big Data and virtual reality are becoming more present, people can access their ideal home in a unique way and skipping the various bureaucratic processes that slow down and complicate the experience.

Imagine, who doesn’t feel confident taking a virtual tour of what could be their future residence, dreaming of a smart home or more?

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Technology and real estate, new major allies

Technological advances and the growth of proptech have helped the Spanish real estate sector to establish itself and remain strong in the face of the current macroeconomic difficulties.

In real estate, Spain continues to be one of the countries with the highest investment. This title has been achieved thanks to the digitalization of the sector, where one of the protagonists has been the real estate proptech. Thanks to this, approximately 824 million euros have been raised, which would place Spain ahead of countries such as the United Kingdom, India and Brazil.

Emerging technologies, such as Blockchain or Artificial Intelligence, have strengthened their presence in the real estate sector by leaps and bounds in recent years. But how is this possible today?

Initially, the emergence of companies such as Idealista, Airbnb and Homeaway became a reference in Spain in terms of proptech. They offered online real estate portals and websites specialized in the sector. As a result, competition among companies and investment in technology increased.

6 advantages offered by the proptech inmobiliario

As we told you, the Spanish real estate market is one of the strongest in Europe. With the help of proptech Spain has been in a constant evolution in the area of home acquisitions, that is why we present you 5 advantages that this sector in the process of digitization, has obtained:

1. Reduction of the buying and selling times

Nowadays, both sellers and buyers need this process to be faster. In view of this, digitalization allows a faster exposure of the property and, above all, makes it possible to reach a much wider audience. This will make possible a greater and more efficient connection between the seller and the buyer.

2. Real time analysis

Through technology, it will be easier to know what is happening in the real estate market in real time. In this way, it will be possible to evaluate the data of the properties, weigh their popularity and thus make a more efficient marketing.

3. Better relationship between real estate agents and clients. 

Imagine being able to have a more optimal and transparent conversation between the real estate agent and the seller of the property. This will make the process much simpler for each of the parties involved.

4. Processes are automated

This involves simplifying and streamlining the paperwork that real estate agents must execute when selling real estate. Thus, the agent can focus only on the client and provide the best service.

5. Virtual tours

This new way of doing visits, allows any buyer to see the property without having to go anywhere, allowing them to make a better decision, easier and faster; based on the virtual experience.

6. Use of real estate crowdfunding platforms

Crowdfunding platforms are a very convenient option for small investors, since they can carry out their collective operations while still receiving funding for them.

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What benefits does the real estate industry get from proptech?

Proptech Spain allows real estate companies to take advantage of technological advances and the use of the network to benefit the sector. This gives them the possibility to reinvent themselves and adapt to the new digital era successfully.

Want to know what some of the main benefits are? Check them out below:

• Real estate agencies will be able to offer their services without the need for intermediaries, which will increase user confidence.
• Thanks to the implementation of new technologies such as VR, users can enjoy guided tours of the home. This personalized experience saves resources and time for both sellers and buyers.
• Proptech technologies allow appraisals, data analysis and comparisons to be carried out immediately, almost in real time.
• The agents involved in the transaction of buying and selling or renting a property can be interconnected and communicate in a simple way in order to streamline the necessary operations.
• Although many proptechs are designed for professional use, there may also be free access applications that are easy to use, intuitive and will help companies, landlords and tenants to manage more efficiently.
• Proptech is not a current revolution in the real estate market, it is, rather, a necessary innovation that will guarantee the future and stability of companies in the sector. Since they assume digitalization as a priority.

6 types of proptech that you can encounter

Proptech Spain can be subdivided into categories according to the scope of action of each one. That is why there are 6 branches:

Real estate management platforms.

In the real estate world there are several management platforms that use technology as a basis to improve productivity and efficiency. Some of these are:

• Real estate management software: used by many proptech companies and considered essential for daily management, because it greatly facilitates the work of agents.
• Real estate CRM: a tool that helps increase sales and simplify the workflow of real estate agencies and their agents.

2. Classifieds

Classified ads are ads that are usually published in print or online, this type of ads are sorted by categories, which makes it easier to search. Currently, there are many platforms that provide the option of publishing classified ads for free. 

These platforms allow users to buy or sell products, real estate or services. As for website platforms, there are several options such as WordPress, Joomla, among many others.

Now, if we talk about customer service platforms, you can find popular options among users such as: ZenDesk, FreshServices, ProProfs, MailChimp, etc.

3. Peer-to-Peer (P2P)

This is a computer network where all or some aspects of the business operate without clients and without fixed servers. Here, a series of nodes are implemented that behave as equals. That is, they have devices that communicate with each other, without a central entity controlling the communication.

Simply put, in a P2P network, each device can act as either a client or a server. At the same time, it can share and obtain information from other devices. An example of such devices are: Bitcoin and BitTorrent.

4. Big Data real estate.

We call Big Data real estate the use of large amounts of data to analyze and improve real estate operations. These types of tools are usually cheaper and more accessible than many other digital tools.

With it, real estate companies can generate detailed reports on the state of the real estate market, what is happening with their employees, how sales rates are doing, manage customers and find out about new trends.

Internet of Things (IoT)

IoT refers to connections of physical devices to the Internet, by exchanging data with each other. They can be everyday objects, such as industrial tools.

It has become an accessible everyday tool, thanks to the use of low-cost chips and constant broadband communications.

Real estate investment platforms 

These real estate investment platforms are nothing more than websites that offer investors the opportunity to enter the real estate world in a collaborative way.

Online you can find several investment platforms such as: 

• Peerbrick: offers higher profitability than other platforms.
• Hoursers: is a real estate investment portal authorized by the CNMV and CMVM.
• Home Benefit: allows investors to invest in real estate assets that they can see and touch.

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If you want to take your business idea to the real estate sector, proptech can be the big push to success you need. Need advice? Contact us at tasconsultoria@tas-sl.es and our professional advisors will be happy to guide you on your way, don’t miss the opportunity to succeed!