Top Proptech Trends in 2024 – by Wes Snow CEO of Ascendix
Wes Snow CEO of Ascendix, ‘As we step into 2024, the proptech arena remains dynamic and full of transformative potential, and AI and machine learning aren’t the only trends driving progress. So let’s look at six top proptech trends that professionals and companies should keenly follow to stay at the forefront of the ever evolving proptech industry.
Co-Renting & Co-Living Marketplaces Call it ‘adult dorms’ or ‘community living,’ the reality is still the same – co-living and co-renting are a proptech trend to watch amidst rising home prices and inflation. Most co-living platforms like Allihoop, Common, and Badi act as real estate marketplaces where users can look for a property, learn more about the community life, and get in touch with the property operator.
For the future of proptech, shared spaces and customized experience mean the increasing need for: Smart home automation to make one’s stay comfortable; Smart building systems, since more tenants equals higher resources consumption; Managing co-working and ‘co-leisure’ spaces will require property management tools with advanced messaging & booking functionality and integration with event management tools in some cases.
Since managing co-renting spaces includes a bigger number of properties management tasks, some tasks like rent collection and maintenance request processing will require automation; Co-living and co-renting platforms often function as mid-term rental portals, which, in turn, calls for AI property matching algorithms, AI lease abstraction, and chatbots that are ready to process tenants’ requests and inquiries 24/7.
Neighbourhood Social Networking Apps will become a part of community living aka co-renting & co-living, helping potential tenants find and connect with the future co-renters based on interests and location and even compare property ratings and reviews like in the ‘real estate Tik-Tok’ app Playhouse.
Commonly, neighbourhood social networking platforms like Nextdoor resemble social media where users create profiles, communicate with each other, post news, and engage in discussions. The core functionality of such apps will be: Simplified user registration and personalized profile creation.
Location-based matching (requires third-party integration with geolocation services) and NLP-powered community search; Robust chat functionality for private messaging and group discussions; Group management and moderation tools to ensure the group upholds the Trust and Safety programs.
Fractional Investment and Crowdfunding Platforms The democratization of real estate investment will stay a part of top proptech trends next year due to the lower investment barriers it offers, higher diversification, greater liquidity, and increased flexibility.
The worldwide crowdfunding market, valued at $10.8 billion, is projected to experience a significant surge, reaching an estimated $250 billion by the year 2030. Yeap, according to the proptech forecast, crowdfunding platforms like PeerStreet and RealtyMogul, as well as fractional ownership platforms like Picaso will face growing competition.
For real estate platform development, this particular proptech trend means: Higher focus on data analytics functionality (powered by AI in most cases); The need for AI legal compliance analysis and AI contract summarization modules; Streamlined due diligence and risk assessment processes; Increased emphasis on digital security.
GreenTech and ESG Considering that approximately 40% of global carbon dioxide emissions come from the real estate sector, it’s no wonder that the future of proptech will include solutions promoting greater transparency in ESG practices.
Proptech sustainability solutions poised to achieve the highest popularity in 2024 are: Energy efficiency technologies aimed to reduce energy consumption, hence carbon emissions; Renewable energy sources, coupled with advanced technologies for their efficient management; Smart building systems for enhanced resource utilization and operational building efficiency; ESG data collection platforms for real-time monitoring and reporting of environmental, social, and governance metrics.
IoT and Smart Home Automation With the growing focus on energy efficiency & sustainability and personalized living experiences, IoT and smart home automation will be an irreplaceable part of any property that aims to optimize resource utilization, enhance user comfort, and contribute to a sustainable future.
For proptech software outlook, this trend means: The rise of advanced property management systems that integrate with IoT and smart home automation devices, enabling real-time monitoring and control of building systems;
Predictive maintenance analytics – with IoT sensors, property operators can monitor the equipment and building infrastructure in real time and address potential issues before they escalate; Integration of renewable energy sources such as solar panels and smart grids; Higher focus on connectivity between various smart devices within a property for user-friendly experience.
eSigning Generally, the digital signature market is expected to experience a Compound Annual Growth Rate (CAGR) of 20.8% in value from 2023 to 2033. Currently, the market is dominated by DocuSign – the company’s share is 67.6% globally. ESigning will stay a part of any proptech solution that implies real estate deal management. With eSigning, documents can be signed remotely in minutes, expediting the deal closure and eliminating the need for face-to-face meetings.
For real estate software development, eSigning as a proptech trend means: Increased demand for individual eSigning solutions or proptech software with eSigning modules, especially if we’re talking about document management systems; Building an individual eSigning solution will require further integration with other systems, such as crowdfunding platforms, or document management platforms; Some eSigning solutions might come with biometric authentication for enhanced security.’
To learn more, or if you need a partner to execute any form of Proptech Software development then use this LINK and the Ascendix team will be more than happy to give you service and assistance.
On the Market secure Leaders Roman Group as a client in a deal that leaves Zoopla in the cold
For anyone who had any doubt what would be the significance of the Co-Star Group buying OTM, the announcement today that Michael Cook, from the Leaders Romans Group has signed a deal with OTM, bringing a network of over 250 agents with it – shows that a big shake up is in the air.
Not only is this a triumph for Jason Tebb (President) of OTM, it is a deal that sees Zoopla losing a very large player as now LRG will list on two sites, missing out Zoopla. The bigger question is who else will follow and more to the point why has LRG gone down this route?
Everyone knows I an a big personal supporter of OTM/Jason Tebb president, because unlike the other UK property portal CEO’s his DNA is agency, he gets the business at a granular level. Also his personal engagement which repaired the damage done by his predecessor shows that the door is always open.
And Jason is super focused in taking the crown from Rightmove as he comments, ‘incredibly exciting time for our agents, with the acquisition by CoStar Group set to accelerate our target of becoming the market leader, bringing industry-leading global expertise and significant financial firepower to help deliver even more value for all our customers.’
Michael Cook CEO of LRG has also gone on record to say that it was the innovation and continued development of OTM that was a factor in deciding to do this historic deal.
Andrew Stanton is the founder and CEO 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 and editor of Proptech-X Proptech & Property News, where his insights, connections and detailed analysis and commentary on proptech and real estate are second to none.