Lior Lustig Speech at the IAC ISRAELI REAL ESTATE EVENT - Tech Innovations in Real Estate
What is PropTech?
PropTech (also called Real Estate Tech, Retech, Estech, or RealTech) is short for "property technology." The term refers to the software, tools, platforms, apps, websites, and other digital solutions that real estate practitioners employ, from brokers and appraisers to architects and construction managers. It encompasses Contech (construction technology) and CREtech (commercial real estate technology) and overlaps with Fintech (financial technology). PropTech improves efficiency and facilitates Real Estate activities, including buying, selling, leasing, managing, appraising, financing, marketing, developing, designing, building, and investing.
Why is PropTech Relevant?
Because it brings the real estate sector into a new digital era of more efficient and sustainable practice. We are all real estate consumers who will be directly or indirectly affected by the changes to the real estate industry inspired by the surge in the number and the quality of PropTech. It impacts, and will continue to impact, how we make important decisions in the real estate industry. It is playing a crucial part in the current global digital revolution and will continue to do so for years to come.
Why now?
The application of technology and innovation to real estate came late compared to all the other industries involved in the global digital revolution. The reason for this delay was the success and profitability of the old commission-based business model, added to the hyper-local nature of the industry and high real estate market regulation, which primarily involved private assets. Additionally, homebuyers were wary of using new and unaccustomed methods for what is likely to be the acquisition of their most valuable asset. Above all, the illiquidity of properties made it hard for the real estate market to keep up with the era of fast-paced liquid transactions online.
All the reasons mentioned above contributed to the resistance by the different stakeholders in the real estate market. Finally, the generational changes sparked by the digital revolution triggered the arrival of PropTech. With the modernization of the world around them, millennials require everything to operate quickly and efficiently, including the real estate market. Thus, the delay in innovation has led to an incredibly dynamic change in PropTech. As a result, this property technology is catching up with the other digital industries and taking over the investment world.
Responses