The real estate industry, traditionally known for its conservative nature, is facing a radical transformation driven by the technologies of the fourth industrial revolution. In this scenario, the emergence of Proptech 3.0 marks a key milestone in the modernization of the sector.
The adoption of technologies has been slow: according to the McKinsey Industry Digitalization Index, construction remains the second least digitalized industry in the world, causing projects to take 20% longer than expected and go off schedule. budget up to 80%. Fortunately, all this is changing and innovation is already making its way into all processes in the real estate market: from construction to the purchase and sale of properties.
“We are currently seeing how technological innovation is closing the productivity and efficiency gap that for years held back the real estate industry, and the rise of proptech is an example of how modernity can make its way into a market with deep traditional roots,” he explained. Santiago Grisales Bohórquez, Head of Product at Bricksave Colombia and specialist in Artificial Intelligence and real estate investments.
Derived from the fusion of “property” and “technology”, the term proptech is a direct descendant of fintech and has come a long way since its inception, with the aim of reaching the point where buy and sell properties online, as well as transform the processes of the real estate sector. In its first phase, Proptech originated in the 2000s with the arrival of online real estate portals and websites specialized in the sector. With Proptech 2.0, thousands of startups and platforms such as Airbnb and Zillow emerged, dedicated to simplifying the industry for consumers and making it easier to search for properties.
Currently, we are at an inflection point, in which the integration of advanced technologies such as the Internet of Things (IoC), Artificial Intelligence (AI), blockchain and virtual reality, are redefining all processes in the real estate industry, giving rise to Proptech 3.0.
In the field of construction, BIM technology plays a fundamental role, because it allows all the data of a single real estate project to be integrated into the same digital model to which all the agents involved have access. This results in accurate digital representations of constructions, facilitating better planning and execution. Furthermore, these models and information become a strategic input for the operation and maintenance phase of the assets. In Argentina, there is still a long way to go: according to a survey carried out by the BIM Forum Argentina of 1,566 construction professionals, only 28.2% know of applications in civil construction of 3.0 technologies, and when we talk about 4.0 technologies that number drops to 12.3%.
On the other hand, artificial intelligence brought with it the possibility of analyzing large volumes of data and consequently analyzing markets, predicting trends and guiding investors’ decisions. For example, Bricksave, the leading real estate crowdfunding platform in Latin America, developed an AI algorithm that identifies the locations where the best properties to invest in are located. This not only saves investors the tedious work of searching and analyzing, but also facilitates access to much more precise information, which ultimately helps to minimize risk and maximize results.
Another key technology is blockchain, which is increasingly gaining ground to ensure secure and transparent operations. Today there are platforms that allow the democratization of real estate investments by dividing properties and selling them through fractions in a 100% digital way. “Blockchain technology is redesigning the market structure by eliminating the barriers that were traditionally associated with property. Instead of seeing the real estate market as a space reserved for large investors, technology now allows anyone to participate and benefit from opportunities, effectively democratizing investment,” said Santiago Grisales Bohórquez.
The potential of Proptech 3.0 in Latin America is enormous, and although the adoption of these technologies still faces challenges, its impact is already evident. In the near future, the real estate industry will be unrecognizable to those who once considered it immutable.
Source: Ambito
I am Pierce Boyd, a driven and ambitious professional working in the news industry. I have been writing for 24 Hours Worlds for over five years, specializing in sports section coverage. During my tenure at the publication, I have built an impressive portfolio of articles that has earned me a reputation as an experienced journalist and content creator.
