The COVID-19 may have turned 2020 upside down, but it has also sowed innovations in the real estate market. Back in the day, Proptech companies were struggling to survive and find funding. Then came 2019, the breakout year for Proptech.Although the pandemic has crushed the real estate sectors, it propels real estate innovations to newer heights.In this article, we'll delve into the potential innovations in the Proptech industry for the post-pandemic world.
How has COVID-19 ignited Proptech innovation?
Before the COVID-19 outbreak in 2019, the investment in Proptech was at an all-time high. Solutions like I-buying, coworking, and co-living were becoming the new normal when the pandemic curbed the sector's exponential growth. The real estate sector, too, has taken a substantial blow at the beginning of 2020. Sure, the outbreak has a significant impact on the Proptech industry altogether. But what we need to remember is that recessions are temporary, and this industry isn't becoming obsolete anytime soon. We can expect to see a recovery within the year, and as usual, the market will worsen before we can enter remission. Technology is deemed beneficial for the real estate industry and will be used throughout as an asset – to improve efficiency and convenience.
However, after a temporary reduction investment at the beginning of the year, Proptech is rebounding as consumers expect more innovation and transformation to fight against the time of crisis. The COVID-19 pandemic has created new opportunities for the sector.
For example, with budgets and optimism in the real estate sector shrinking, only those Proptech companies that can exhibit value are likely to thrive. New Proptech technologies have begun to emerge to accommodate changing market demands and consumer expectations.
Touchless access and asset control
The way we touch and come in contact with physical surfaces is not the same anymore. Day-to-day surfaces, like door handles, elevator buttons, and light switches, are potential infection areas.This increased caution against physical contact has spurred the development of touchless asset control systems.
Touchless asset control redefines how we enter and move around buildings. Attributes like access verification, contactless integration, smart lighting, and voice recognition ensure safe space usage and provide secure and convenient building navigation. Adding simple automation within the workspace in a pandemic environment can limit viruses and bacteria's spread within the office.
Employers can use occupancy level monitoring solutions to keep tabs on social distance measures. These tools feature built-in capacity counters to help office managers determine office space density. Like metered highway entry controls, we can control people's entry to high traffic areas like the cafeteria and elevator access lobby. In that case, smartphone apps can check the capacity levels beforehand to ensure that it would be safe for them to stay within that room while maintaining proper social distancing rules. Thermal cameras with AI people recognition can be added to boardrooms to keep track of occupancy and used for setting limits and on-demand sanitizing service orders as soon as everyone leaves.
Space planning
Increased focus on physical distancing has also encouraged employers to create safe workplace conditions. Space planning is a newly emerging Proptech trend designed to offer companies the best of both worlds: safe office space and a collaborative environment.
Smart space planning solutions include sensors paired with machine learning algorithms, enabling employers to view their workplace better. With insights into metrics like employee density and usage, employers can make informed decisions to eliminate employees' crowding and office rearrangement.
Space planning technology also allows employers to utilize strategic investment plans to optimize their office space further. For instance, after concluding on-site operations with physical distancing implementation, employers can evaluate usage patterns to use the remaining space better. In offices that used to have full capacity can now run more efficiently with space.
Tech-assisted property tours
To comply with the social distancing guidelines, brokers and developers provide technology-assisted virtual tours to potential homebuyers. Agents can use technologies like BIM, AR, and VR to offer video tours to help homebuyers and renters get all information without physically visiting the property.
Self-guided, 3D digital property tours are also on the rise. With the help of an in-app interface, renters can visit the properties virtually without the risk of contracting viruses within surfaces. Virtual reality is one of the few methods that one can use to view an entire property remotely. Another approach to consider would be a live stream that the property owner could host, sending an invitation to potential clients for a more in-depth tour of the property with more information than just images. This method can be more alluring for potential clients and investors, as they will receive a more catered experience for their tastes.
Remote construction
Construction documentation platforms enable remote work by allowing managers to immerse themselves in the construction site process without actually being on-site. These solutions map visual information to floor plans and categorize different construction layers to support drafting and optimize workflows.
In addition, tools that streamline engineering processes, like AI-based areal data translation solutions, are also rising. With these tools, it can be much easier for developers and architects to predict particular designs' stability and access the entire construction blueprints remotely. Keeping some people away from construction sites can reduce traffic on the actual construction sites, decongesting the number of need people on site.
Smarter valuation and appraising
Real estate valuation is a cumbersome process. The broker meets in-person with the owner to determine a fair price for the property. Real estate appraising solutions streamline the valuation process, enabling brokers to work remotely.
Appraising tools utilize AI to analyze several databases to facilitate commercial appraisal procedures. Though automated valuation may not be as accurate as manual inspections, it is a worthy asset in these times of crisis.
Cloud-based appraisal solutions also help investors perform property valuations and appraisals without hiring an appraiser.
Multiple interconnected assets
The COVID-19 pandemic has crippled investment decisions and asset management solutions. Advanced analytics derived by combining information from numerous sources offers real estate professionals an opportunity to make data-backed, informed decisions.
For instance, construction managers can combine data from different applications into a single platform to analyze assets and improve forecasts. AI-powered real estate tools help construction managers get actionable insights to monitor their operations.
These data can change developers' outlook on creating specific temporary office spaces that will run smoothly on half capacity within the room. Ensuring a safe environment will benefit all stakeholders, as they will feel safer with their investments, knowing that the risk is minimal to reduce liability.
Conclusion
Most commercial spaces are still struggling to strike a balance between safety and operability. Companies need to mantain profitability, along with keeping a close eye on national and regional safety regulations. Many cuts are being made, as sustainability is on a sharp decline in the industry. The future seems to be harsh but should be taken with some optimism, as the technology within real-estate is only becoming more useful and innovative. Technology never takes the hit. It's the market and people that do. But with new developments like smart office planning and remote real estate solutions, Proptech may guide property operations to the new normal.