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Daily bite-sized proptech and property news in partnership with Estate Agent Networking.
Estate agency is a people business…only if humans are in the office
Today I came across a property professional under pressure. They posted that if they received a market appraisal request from a potential vendor late on a Saturday night, while settled on the sofa to watch TV, they’d ignore it. Why? They’re an agent, right? Well…they argued that they’re human first.
In many ways, I would have to agree with that stance. For sure, real estate is a service industry, but there must be a line in the sand allowing us to switch off and live our lives.
However, agents must realise that some companies never switch off. Is that enough of a commercial driver for them? Amazon makes revenue of $21 billion annually, and for good reason.
Through Amazon, if a client wants goods on a Saturday night, they can have them delivered in a cardboard box with a smile by the morning. It never switches off and its profits show that.
The same is true for online challenger banks. Anyone can open an account 24 hours a day, seven days a week, using just their smartphone. The acquisition costs for these fintechs is 75% lower, forcing brick and mortar banks to quickly revise their methods.
To this end, will getting property services on demand become the norm sooner rather than later? To meet the digital transformation demands of these digital natives, will agents need to be in the branch 24/7?
I’m not so sure. Unless we see a torchbearer drive the change, we might still see agencies closed on a Saturday afternoon for the next decade. As the buying habits of the public move relentlessly on – well, relentlessly online – failure to grasp this will come at a price.
Propertymark CEO Nathan Emerson thinks proptech is here to stay
Writing in the publication Estate Agent Today, Propertymark CEO Nathan Emerson has extolled the virtues of what digital can do for the agency industry. In a very balanced piece, he says that though there is confusion as the proptech landscape is fragmented, clear verticals are opening up and maturity may well be on the way. This might well mean smaller sales teams and more tech.
In the article, Emerson states: “It is imperative for any property agent, whether lettings or sales, to keep abreast of the digital transformation revolution which is occurring at this moment in time. This will not only ensure that they are engaging with the most relevant products for the short and medium-term, but they are also in a position where they can strategically place themselves to continue to deliver and exceed client and customer demands.
“Whilst a complete end-to-end solution has not been entirely adapted on a property sale, it is still possible to not only list and remotely market property but be in a position where a potential buyer can now view full 3D interactive videos, floorplans and effectively filter out potential choices to a much more granular detail.”
Due to this, Emerson says, the viewing to sale ratio has decreased. Estate Agencies have become more efficient as a result of this shift to dynamic, small teams using “carefully integrated digital solutions”.
What are the proptech trends for 2021
The only certainty in the world map of proptech, with London only second to New York in the proliferation of proptech start-ups, is that nothing is certain. At present, around the world, the real estate sector is pouring investment into artificial intelligence, big data, building information modelling, IoT, VR and AR, and the shared economy.
So, as a bit of a side bet, investors are spread betting, unloading cash on anything that has the potential to be the next big thing.
We have put together a non-exhaustive index of the sectors and technologies that are most apparent both here in the UK and across the globe, with of course commercial real estate being the number one big earner in the real estate vertical.
A to C
3D Modelling, 3D Printing, Accelerators, Agent Matching, Agent Services, Analytics, Artificial Intelligence (AI), Asset Management, Auction, Augmented Reality, Augmented Valuation, Big Data, BIM, Biometric Security, Bitcoin, Broker Free Listing Search, Build-Buy-Manage-Rent-Sell, Cad, Chatbot, Coliving, Commercial Real Estate, Compliance, Construction, Construction Management, Contech, Conveyancing, Co-Working, CRM, Crowdfunding, Cryptocurrency, Customer Experience (UX), Cyber Maturity.
D to O
Data Protection, Data Valuation, Design, Development, Digital Twin, Drones, ESG, Facility Management, Fintech, Funding, Geolocation, Geospatial, Home Services, Indoor Mapping, Infrastructure & Sensors, Investment & Finance, Investment Management, Investment Platforms, IoT, Lead Generation, Legal Tech, Leasing Management Software, Lending – Mortgages, Lending Peer to Peer, Lending Tech, Lettings, Listing & Search Services, Location Based Services, Logistics, Long Term Rentals/Sale Search, Management & Maintenance, Marketing, Marketplaces, Money Transfer/Remittance, Mortgage Tech, Modular, Online Agent Brokerage, Online Agent Lettings, Online Agent Sales, Online Agents, Open Banking.
P to Z
Payment Operations, Payments/Billing Tech, Platforms, Portals, Portfolio Management, Property & Infrastructure, Property Management Solutions, Property Marketing platform, Property/Building Management, Real Estate Investment, Real Estate Marketing Solutions, Real Estate Tools, SaaS, Sales & Marketing, Shared Economy, Shared Services, Short Term Rentals, Smart Building, Smart Buildings, Smart Cities, Smart Cities & Mobility, Smart City Sustainability, Smart Homes, Smart Real Estate, Smart Services, Software Providers, Space as a Service, Start-ups, The Shared Economy, Valuation Tools, Venture Capital, Virtual Reality and Virtual Viewing.
Andrew Stanton is the founder of Proptech-PR, a consultancy for Founders of Proptechs looking to grow and exit, using his influence from decades of industry experience. Separately he is a consultant to some of the biggest names in global real estate, advising on sales and acquisitions, market positioning, and operations. He is also the founder of Proptech-X Proptech & Property News, where his insights, connections and detailed analysis and commentary on proptech and real estate are second to none.