The PropTech Revolution: Are We Ready?

Recently, a colleague real estate professional got in touch to learn about the growth of PropTech in my subregion.

"Glacial," I muttered after a sigh, knowing I was probably overstating it.

I chose glacial because it's a fitting description of the speed of change in real estate, so I wasn’t too off the mark.

But we both agreed that tech moves fast. And as we’ve seen technology transform many other industries, the pace of change may threaten to overwhelm real estate, at least some practitioners.

That said, here’s what it’ll take for industry players to embrace and make the most of PropTech:

Adaptability

We can’t embrace the new challenge that is a tech revolution in the real estate industry when we’re unwilling to be adaptable and embrace change.

The good old ways of doing things may have to make way, or at least lose some power to modern MOs. And the most adaptable people stand the highest chance of making the most of what's coming.

Digging our heels in and resisting change is a lost course.

Curiosity

It takes massive amounts of curiosity to get behind, let alone embrace new tech. Curiosity to learn what it’s all about, where it’s coming from, how it can help, etc., will take us a long way.

But also lots of education. Proptech companies and professionals in the real estate industry must learn about the operation of tech in real estate, the perfect intersection.

An appetite for risk

Embracing some aspects of PropTech is down to sheer risk. Okay, calculated risk.

And we all know the relationship between risk and returns in real estate. Sections of the PropTech revolution will understandably be less than appealing to many users.

It’s normal for some end-users to shun your property altogether because you’ve embraced some aspects of PropTech that are too new to these users.

Every new line of technology carries that element of risk, a real risk of turning users away.

Some growing pains

It takes time for people to warm up to new things. And some revolutionary technology in real estate is certainly no different. It means adoption is likely to be slower than projected.

But like FinTech, the hesitance to embrace PropTech will die a slow death with time. Until then, though, the growing pains will still exist.

PropTech is the way to go for the real estate space. Actually, we’ve been marching in that direction for years now. And with every passing day, we’re inching closer to the brave new world ruled by tech.

PS: For the uninitiated, PropTech (Property Technology) describes the many elements of technology employed in the development, use, and management of property/real estate.