Five PropTech Solutions to Watch Out For
The real estate industry has for the most part, been a slow starter when it comes to digitization. But that has changed significantly over the past five year, as different stakeholders within the industry realize the impact that digital solutions can have and the competitive difference it can give them.
PropTech emerged as a concept in 2015 and is now very established. Start-ups all over the world are challenging the real estate status quo in terms of how property is bought and invested in, how it is managed and how it is lived-in. They are demonstrating strong results and presenting powerful case studies of their solutions. This was borne out in Venture Scanner market analysis which revealed that 2018 was a record year for PropTech, with total investment in the sector almost reaching $20BN.
2019 is going to an even better year and there are interesting PropTech solutions emerging in countries all over the world. As an organization that’s always looking for new partners that could enhance our own offering, we keep a close eye on what’s happening in the market. Here are five of our current PropTech favourites.
1. Spanish online real estate agents,
Housfy
In Spain, as in many other countries around the world, the way property has been bought and sold has mostly followed the same model for generations. It can be time-consuming, costly, frustrating and the whole process lacks transparency.
But that’s not the case now, thanks to the arrival of companies such as Housfy. It’s an online real estate agency that allows property owners to sell directly via the Housfy platform. It does this within an average of just 60 days and achieves market price for the properties it sells and doesn’t charge a commission – just a flat rate of €3,990.
2. The largest ‘fix and flip’ company in the US, LendingHome
Traditional mortgage providers face several restrictions, ranging from legacy software to an over-reliance on manual processes. LendingHome has addressed these head on, using its bespoke online technology to cut the cost of mortgages in half and passing those savings onto borrowers, with lower rates, fees and no hidden charges.
It’s proved particularly popular with the ‘fix and flip’ industry, a key component of US real estate, whereby people upgrade aging homes and sell them on. In 2018, LendingHome became the #1 lender to the US fix and flip industry, both by number of loans and by dollar volume.
3. Berlin-based smart home tech firm, Hum Systems
Any digital solution that improves the tenant experience is going to be popular at Allthings and German smart home tech firm Hum Systems certainly fits into that category. It supplies an IoT platform that control devices and simplifies and streamlines the lives of its users, keeping them safe in the process.
Hum Systems’ product Livy Protect, lets users protect their property against fire and burglary, whilst also monitoring the temperature, humidity, air quality, carbon monoxide and noise levels. It also links to security firm Securitas for even more protection. It’s an interesting approach and unusual to see an example of hardware PropTech in a market dominated by software.
4. The established brand going digital, Schindler Elevator Corporation
What precisely qualifies as ‘PropTech’ and what doesn’t, is not set in stone. However, one thing is clear – the emergence of PropTech firms has encouraged more traditional firms to look for digital solutions to real estate challenges, as evidenced by this automated elevator from Schindler.
Schindler does not really have a track record in PropTech innovation but its ‘Schindler Ahead’ digital portfolio for smart elevators and escalators is improving maintenance of equipment, reducing downtime and adding higher comfort levels for users. It works by analyzing large volumes of data on location, volume of passengers and traffic patterns, to create a smarter and slicker experience for all parties.
5. Swiss start-up connecting employers to non-desk-based employees, Beekeeper
It’s a fellow Swiss start-up that we’ve identified as our fifth PropTech to watch out for, in the form of BeeKeeper, a communication platform and app for frontline workers. It’s been referred to as ‘Slack for non-desk employees’ and is designed for firms where more than half of the employees are non-desk-based.
It’s a company and product with huge potential – more than 80% of the world’s workers are non-desk employees – and its recent €41 million Series B funding round clearly shows it is a PropTech firm on the rise.
PropTech is having a significant impact on many parts of real estate and Allthings is a PropTech solution that is proving genuinely transformative to its users. To learn how the Allthings platform could help your organization, or to request a free demo, click here.