What does PropTech mean and why it is in vogue?

With the inclusion of technology and the Internet in all the daily aspects of our lives, it is not surprising that it does so in an almost essential way in the businesses of different and very diverse sectors. One of these sectors is real estate, where digital technology is used to boost their business and, mainly, in order to improve and facilitate usability for users through digital platforms. In this case, a term has already been coined to define it. We talk about PropTech.

But, what does PropTech mean?

In the United Kingdom they took charge of naming this trend that reached its popularity as early as 2014. PropTech is really an acronym for the English words “property” and “technology” which in Spanish would be “property” and “technology”, applied technology to property, and that’s where the real estate market comes in.

PropTech is here to stay and improve the traditional “savoir faire” of the real estate market by combining technology, such as the Internet of things or Big Data, in real estate, such as investments, financing and market projects, to improve its profitability in a more innovative way and close to the current public.

Current situation in Spain

While in the neighboring countries historically more advanced at a technological level than Spain, the PropTech is already underway for more time. In Spain, now begins to take off in a remarkable way implementing more agile business models.

To better understand the concept itself, these would be the characteristics that identify a PropTech business:

  • Agencies that use virtual reality (Floorfy, …)
  • Real estate portals online (Fotocasa, Habitaclia, …)
  • Client-to-Client digital platforms, where you can manage sales-purchases without intermediaries
  • Crowfunding investment platforms to democratize real estate investment (Housers, …)

From Amat we have already given our opinion in various media about this phenomenon. At the end of December, we had the professional point of view of Guifré Homedes, director of our Barcelona office, in Grupo Via and La Vanguardia.