PropTech 3.0 (Current and ongoing)

PropTech to automate and optimise various aspects of the real estate industry, such as construction, property development, management, with a focus on sustainability to reduce carbon emissions and promote green building practices. Examples include:

• Artificial Intelligence (AI)

• Machine Learning (ML)

• Blockchain

• Other IoT Emerging Technologies
   

​Artificial Intelligence (AI) 

Artificial Intelligence (AI) is the simulation of human intelligence processes by machines and computer systems to perform tasks that would typically require human intelligence, such as learning, reasoning and problem-solving.

AI requires a foundation of specialised hardware and software for training machine learning algorithms and large amounts of datasets. It can be used to automate routine tasks, analyse data, provide insights and predictions to support decision-making. More commonly-known AI technologies / applications include machine learning, natural language processing, generative AI, speech recognition, computer vision and robotics, etc.

 

Examples include:

• Chatbots and virtual assistants that use natural language processing and machine learning to streamline communication, quickly respond to buyer/tenant inquiries and resolve maintenance issues.

• Predictive analytics software that uses AI algorithms to forecast real estate market trends and identify potential investment opportunities

• Smart building and energy management systems that use machine learning to optimise energy usage, reducing costs and improving sustainability 

• Real-time monitoring systems that use AI to detect anomalies or potential hazards in building operations

• Property management software that uses AI to automate tasks such as maintenance requests, rent collection and lease renewals

• Generative AI can analyse property listings and provide personalised recommendations for buyers/renters based on their preferences, search history etc. It can also analyse architectural blueprints, interior design styles to create realistic 3D property models, interior design options for potential developers, buyers / renters

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Machine Learning (ML)
A subfield of AI, Machine Learning (ML) involves the use statistical techniques to analyse and identify patterns in large datasets to train computer algorithms to make predictions or decisions without being explicitly programmed. 

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Examples include:

• Property valuation software that uses ML to analyse property data and provide accurate valuations

• Recommendation engines that use ML to provide personalised property recommendations to potential buyers or rental

• Smart devices that use ML to learn user preferences and adjust temperature, lighting, and other settings accordingly.

• Automated lease abstraction software that uses ML to extract key terms and data from lease agreements and other legal documents.

• Predictive maintenance software that uses ML to identify potential maintenance issues before they become major problems, reducing downtime and repair costs

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Blockchain  
Blockchain is a decentralized digital ledger that enables secure and transparent transactions without the need for intermediaries. In the context of Proptech, blockchain can be used to manage property ownership, streamline transactions, and ensure data security and is used to improve transparency, efficiency and security.

Examples include:

• Real Estate Tokenisation:
  Provide fractional ownership of a Real Estate asset through creation of digital tokens that represent the ownership 

• Smart Contracts for Automated Property Transactions:
  Create self-executing agreements that automatically execute when certain conditions are met, thereby reducing the time and cost of buying and selling real estate

• Title Management / Registries:
  Create a secure, tamper-proof and transparent system for managing property titles

• Property Management:
  Create centralised, property management platforms that provide real-time property data, enabling property managers to manage properties more efficiently and streamline communication between stakeholders

• Real Estate Crowdfunding:
  Provide a decentralised crowdfunding platform to provide fractional ownership of a Real Estate asset, where investors can pool their resources and invest in real estate assets

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Contactless / Touchless IoT Technology

Contactless Technology uses IoT sensors and devices to automate various building functions and reduce human contact, thereby reducing the spread of germs, enhancing occupant safety and improving customer experiences.

It gained significant importance in real estate industry due to the COVID-19 pandemic as it allows people to interact with the property without physical contact. Examples include: 

• Touchless access control systems

• Automated doors

• Voice-activated elevators

• Touchless payment systems

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Drones 

Drones are also unmanned aerial vehicles (UAVs) that can offer the following:

• Quick and efficient capturing of data (including multi-perspective, high-resolution aerial images and videos) of buildings / properties for the creation of detailed 3D models for architectural visualisation, urban planning, property management and real estate marketing 

• Access to large areas, hard-to-reach or hazardous areas for site inspections, monitoring of construction sites and other environmental metrics, execution of maintenance and repair tasks thereby improving safety and reducing costs for property managers

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It is important to note that there are also regulatory considerations to take into account when using drones, particularly around privacy and safety. As such, it is important to work with experienced and licensed drone operators when incorporating drones into your PropTech strategy.

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