The Proptech Age
Real Estate and the buying and selling of property is a tale as old as time. I think our ancestors’ would be shocked as to how we view and exchange real estate. Throughout generations there has been wars fought over land, people exchanging properties through their families, giant constructions built through sophisticated architecture and design, and so much more. We are now marching towards a whole nation in the US and many other parts of the world to become RENTERS and renters only. No longer are the days of a dream of owning your home, fixing it up and generating equity and leverage for you and your family to enjoy the middle class lifestyle. “Proptech” has started to become a popular buzz word referring to Property-tech and its sweeping the nation securing about 3.8 billion dollars in funding in 2021 and that number only seems to keep growing as larger players start to swath up the startups that are participating in this space.
With millennials accounting for about 55% of the market that are wanting to buy their home there is a lot of pressure being put on developers and construction companies there is room for property tech companies to make lending easier for developers so construction can happen faster, seeing that real estate is a very slow moving asset. The big boom here that after the Covid-19 pandemic is coming from the Boomer and Gen Z generation that are kind of done owning their home they sold, their kids are now grown, and they want a simpler, but they are a lot more tech savvy as well so they want smart homes that they can control everything from their phone and that means wanting a lifestyle where they can keep up with everything surrounding their properties with their smart devices.
These smart devices and software services that have been around for a few years including paying rent online, scheduling maintenance requests, having a virtual tour of the property, and the rise of DocuSign and other apps are dominating the competitive real estate market effectively making it much easier that the traditional “slower way.” I believe we will be seeing a lot more acquisition and consolidation in these types of companies that handle most of these spaces. Lets not even discuss what crypto and tokenization of real estate and smart contracts are using in these spaces, that’s a topic for another day. PropTech seems to be on the rise and a very smart investment play to jump into for legacy players and small investors a like.
Follow our group JaJa Elite Homes
