What is PropTech?
There are many ways to define PropTech but maybe the best definition that includes all the views around this concept is this quote by by James Dearsley:
Proptech is one small part of a wider digital transformation in the property industry. It considers both the technological and mentality change of the real estate industry, and its consumers to our attitudes, movements and transactions involving both buildings and cities.
Go ahead and watch this concise and insightful video on PropTech, its different segments and how it changes our lives now and in years to come.
PropTech is still a new trend but it does not hold it from being very precisely segmented. In the following picture you see how PropTech shares connection to Real Estate Fintech, ConTech, and Collaborative Economy (aka. Sharing Economy).
In order to map the market segments I would recommend you to have a close look into this comprehensive
segmenting by AXA -the French Insurance giant- which illustrates exactly the borders that we can imagine for
different market segments. You will also see some mostly French startups that have a big role in each section.
The rise of Unicorns
Most probably the most prominent unicorn we know in PropTehc is Airbnb. Do you know some other startups or Unicorns as big players in this industry?
A unicorn is a company worth over $1 billion. The first company which acheived this milestone was Compass, following up by Homelink and SMS Assist short after. Opendoor is also very important game player in PropTech since its services cover a majority of market segments of PropTech under one name.
Among the names mentioned we see Homelink, a Chinese real estate platform
which makes the PropTech not only limited to the US and Silicon Valley.
Hence, we should know this industry as a global existence. Compass made a networks of
real estate brokers, Homelink is a portal, SMS Assist in practice acts as a tool to manage the proprties.
Coming back to the magnificent Opendoor which I praised earlier, they have developed an algorithm for buying and selling homes online.
What makes Prop Tech really practical and a trend for investment and new arrivals is
an undeniable tendency for investors with a mindblowing 6.4 billion USD over the past 4 years collected by more than 800 registered real estate startups.
Final words would be I advise professionals and scholars to keep in touch and get us posted
in the comments about how you think will be the next evolution in PropTech?
and do you think Blockchain can affect all spectrum of PropTech industry including Online Paperworks -like what MyNotary does in France to get rid of never ending and boring paperworks-, Payment security, etc.?
Meanwhile waiting for your thoughts we will gather an update for you on probable changes Blockchain ft. PropTech will bring to this new but evolving industry and update this post very soon! While PropTech disturbs Real Estate industry, Blockchain will be there to disturb to assist this juvenile industry, that the question!?