“Property Tech” – The Latest Buzzword in Real Estate Investment
It seems long overdue, but two of the biggest wealth-creating industries, technology and real estate, are now coming together to create technology-enabled real estate investment. Examples abound, from the launch of online property portals Zillow and Trulia in the US and Rightmove in the UK, to OfficeRnD for planning, creating, and managing office space, to crowdfunding sites, which allow small investors to become involved in property finance. In fact, one of the most exciting developments in property tech is the emergence of investment platforms that expose the property market to investors in a way that does not require substantial capital outlay.
One real estate tech site in particular, Estateya, not only allows agents or private individuals to list their properties for sale, but it also allows for the creation of large and small group investment projects so members can take part in these investment opportunities, whether by creating them or investing in them. In addition, the site is also a social site where members can communicate with each other, post on the feed, follow properties that have been posted, comment on articles, and more.
Property tech is about challenging and transforming the real estate investment sector, and moving into 2016, it is nicely poised to do so. According to the Financial Times article, Tech Innovators Aim to Shake up Property Industry, “Investors worldwide put a record $1.4bn into real estate tech start-ups in 2014 according to figures collected by start-up tracker Crunchbase. The US took the lion’s share with $950m; the next-largest investments were made in India, China and Europe, of which nearly three-quarters was in the UK.”