Upcoming Proptech Trends for the 2024 Real Estate Industry
Now that the 2024 London Proptech Show is behind us, we have received a glimpse into the industry’s ongoing and future trends. Using these, real estate agents and adjacent industry professionals can prepare for the latest tech developments in the property market. Find some of the most emergent trends below.
And That’s a Wrap.
After 2 days filled with wide spread networking, knowledge sharing, product demos and business development, the 2nd edition of the @ProptechShow comes to an end. Thank you to all our sponsors, exhibitors, partners and all to make the event a grand success. pic.twitter.com/FN5whpPj4a
— London PropTech Show (@ProptechShow) February 28, 2024
Further Digitalisation & Data-Driven Smart Homes
Multiple times in the two-day conference, speakers and panels stressed the importance of data analytics. Taking a data-driven approach, real estate companies should be able to mitigate risk when investing in construction, maintenance and other forms of industry spending. Of course, this necessitates the further digitalisation of real estate and the wider commerce sphere.
This comes as no surprise to industry professionals who have watched many other sectors turn digital over the last decade or two. Thanks to the internet, a lot of work and entertainment industries have become fully integrated into the technology we use today. For example, the iGaming space started as the digital counterpart to traditional casinos. Their websites contain hundreds of games, including themed brands like Slingo Deal or No Deal, while tracking sophisticated metrics that allow providers to manage their online casinos efficiently. In past years, it has been challenging to introduce data-driven decision-making into real-world spaces. Now, with the mainstreaming of smart home technology, that is changing.
As smart technology continues to develop, it’ll become more cost-effective for tenants across the world. Every smart home is different, so there will always be variability between properties. Some will just have one or two pieces of smart tech while others might have a fully connected ecosystem of appliances. Less-developed homes present a great resale opportunity, while the technology itself improves the quality of life for tenants, especially those in older age brackets according to research. Fundamentally, smart devices are also capable of gathering and tracking data that both tenants and real estate professionals can use to manage their property more efficiently.
Sustainability Still Drives the Industry
Sustainability was another ongoing concern during the show’s conferences, particularly the reduction of carbon emissions when developing properties. Where new technologies and a healthy amount of concern intersect, the real estate industry will need to adapt to regulations that aim for more sustainable property development. Fortunately, a lot of proptech use cases streamline and simplify pre-existing supply chains. This means that companies on the cutting edge of proptech can cut both costs and carbon out of their business operations.
Alongside environmental sustainability, energy sustainability is also a huge motivator for today’s industry. Developers will focus more on building net-zero constructs that use green energy, to make them less susceptible to anticipated price shifts in natural resources. Smoothing out energy price volatility should have a notable effect on rental prices, hopefully driving more business toward real estate companies.
Generative AI Will Impact Proptech
Developers and real estate businesses have been using AI for quite some time. Typically AI’s role was on the backend, helping the business keep its ledgers in order or streamline logistical concerns around real-world activities. After the rise of generative AI in 2023, proptech will receive some more exciting use cases for AI.
Two gen AI qualities make it a potential game-changer for real estate. The first is its ability to understand context, which is necessary when evaluating properties. At any one time, a property will have material, economic and tenant-based concerns that must be balanced. While humans will stay involved in decision-making, gen AI tools that make more complex decisions can help speed up those processes.
Secondly, its ability to generate written and visual content may take customer-facing services to the next level. 3D tours already exist, in use by giant realty firms like Sothesby’s, but gen AI could make them more accessible and interactive. Smaller real estate operations could create similar tours without spending as much. Then, when on the tour, AI could generate design and decorative changes on the fly to better show clients the property’s potential.
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