PropTech

The real estate sector has undergone several upheavals and revolutions over the past decade. Today, real estate professionals are working hard to find solutions that bring flexibility and agility to property programmes, and to better serve the needs of building users. These innovations are now shaping projects from the design phase all the way through to management. PropTech responds to these new challenges and is genuinely revolutionising the real estate sector — to the point where this phenomenon can no longer be ignored. The era of real estate disruption has arrived. What are the key issues? What do we really mean by PropTech? Which professions are most affected? Read on to find out.

PropTech: definition

PropTech is now at the centre of debate among real estate professionals and their partners. While some describe this movement as the new FinTech, PropTech is a deeper phenomenon that seeks to rethink the entire real estate value chain. A contraction of the words Property and Technology, PropTech encompasses the start-ups and companies that use new technologies to reimagine how buildings are used. In 2019, 2,926 start-ups in real estate, construction and smart cities were identified across Europe, according to the firm Unissu, including 546 in France.

Orbiting around PropTech are the sectors of finance (FinTech), insurance (InsurTech), real estate (Smart Real Estate), smart cities (Smart City), construction (ConTech) and the sharing economy.

Depending on classifications and perspectives, other branches may also be included within PropTech. Real estate does, after all, encompass a wide range of activities. It brings together services that come into play during:

• The design and construction phase
• The purchase phase
• Property sales
• Leasing and commercial leases or professional leases
• Relocation
• Property management

That said, innovations are having a more pronounced impact on the design and property management phases in particular.

By definition, PropTech therefore takes different forms depending on the nature and specificity of the innovation that needs to be "rethought in its entirety", according to the French PropTech movement (a movement founded by a group of entrepreneurs).

Which real estate professions are affected by PropTech?

PropTech brings together all real estate professions — both those that already exist and those yet to be created. Indeed, sectors born from the sharing economy, such as coworking and coliving, have emerged entirely from the rise of new technologies and their adoption. These developments are also reshaping the way we consume and use spaces.

Start-ups are bringing greater fluidity to processes, user journeys and workflows — but let us not forget that behind the technology stand the people who analyse and respond to users' needs. New roles are emerging, such as connected hospitality managers, real estate community managers and data scientists.

What are the challenges of PropTech?

PropTech covers a wide range of challenges, all aimed at increasing productivity and value, and improving service and user experience.

Reinventing the user experience

The goal today for real estate professionals lies in their ability to offer the best possible user experience within buildings. Journeys and flows are rethought in line with the expectations of each stakeholder, whether buyers or end users. PropTech start-ups bring technology to bear in support of this, making the experience as immersive and personalised as possible — whether virtual or in person.

As a result, applications are multiplying: in the world of property transactions, we now talk about 360° tours, property geolocation, virtual viewings… In property management, meeting rooms can be booked remotely and in real time, temperatures are controlled via an app, and buildings are given their own digital identity (BIM)… These innovations are now shaping the daily lives of users, as well as the building managers and investors who serve them.

Boosting productivity

The digitalisation of businesses and the advancement of technology have had a considerable impact on processes. These are now gaining in both productivity and value. The perceived image of a connected company is not to be underestimated over the long term.

While still in its structuring phase, PropTech presents significant growth potential. It is already attracting the attention of investors who see new opportunities for value creation across the entire value chain.