Picture this: you live in a high rise building, on level 136. A drone comes to your window to deliver your 8:15 breakfast order. You load up your VR workspace and crunch some numbers from home office in the sky. After lunch, you travel vertically to your coworking space, down a few levels to the gym, then later to the street with shops, cafes, and newsstands.
Is this the future of urban living? That's what Andrew Baum, visiting professor of management practice at SAID University of Oxford seems to think. As an advisor to institutional property investor about global property investment strategy, Baum predicts that PropTech is the next significant trend that will shape the way we live. PropTech is intimately linked to the first stage of smart city development.
What is PropTech?
PropTech is the new FinTech. FinTech revolutionized the financial world; it gave us online banking, crowdfunding, and P2P lending. Proptech is a newly minted business term for property + technology. Traditionally conservative, the Real Estate industry is too slow, reactionary, and rigid to keep up with the growing demands of smart city development.
PropTech startups are formulating, innovating, daring to ask the typically overlooked questions while addressing the prevalent issues concerning the Real Estate Industry.
- Why can't we buy houses online?
- Why does it take three months for a property purchase to go through?
- How much is every available property worth in the city of my choice?
- How can real estate be prepared for the digital present and future?
- How can every phase of the real estate cycle be digitized?
The Real Estate industry is easily one of the biggest industries, all of the commercial and residential assets in the world total to more than USD 217 trillion - which makes up roughly 60% of all global assets. Yet innovation has bypassed the industry for various reasons, namely outdated practices, tools, and marketing strategies.
Realizing immense future opportunity, startups, innovation hubs, and collectives are popping up around Europe with the goal of supporting and promoting innovation in the field of property technology.
PropTech startups to watch:
This Berlin-based startup rents furnished apartments via their native platform. Landlords must sign a contract for a period of at least 31 days to one calendar year. This cuts out the hassle of Airbnb hosting and makes passive income for the owners of the 17,000 apartments in Berlin, Frankfurt, Hamburg, and Munich currently available on the platform. Wunderflats recently raised three million euros in a successful funding round.
vonPrivat24.de offers their customers relevant time and work relief in real estate marketing. Potentially cutting out the need of a realtor - once you place a listing on vonPrivat24.de, the ad is automated on all major German real estate portals and 100 other surrounding portals. This cuts down on the manual entry of data, which saves the landlord a significant amount of money - up to 50 percent compared to individual bookings.
2018 PropTech events:
FUTURE: PropTech Berlin September 13, 2018 350 participants gather from around the globe to discuss PropTech solutions with a focus on the German-language market.
PropTech real estate initiatives and communities to join:
PropTech Now! Berlin Berlin, Germany
PropTech Now! encourages reflective discussions on PropTech during their monthly meetings.
German PropTech Initiative Berlin, Germany
The German PropTech Initiative links the real estate founders of digital business models in German-speaking countries.
High Rise Ventures Berlin, Germany
High Rise Ventures is a PropTech company builder from the founder of Kiwi - a keyless entry system for multi-family homes. Based in Berlin, High Rise Ventures aims to help early and seed startup tech companies develop appropriate new business models for their technologies and make them successful in the real estate industry.
The German Tech Entrepreneurship Center Berlin, Germany
The German Tech Entrepreneurship Center (GTEC) has launched its first PropTech Innovation Award. GTEC invites startups of all stages around the world to apply, share knowledge, and formulate standards in the new industry.
Berlin Startup Jobs: PropTech Berlinstartupjobs.com
View job openings for PropTech startups.
PropTech companies are positioning themselves to disrupt the Real Estate industry. Research and join a PropTech community in your area to stay on the cutting edge of PropTech development.