Lately, we are fans of long-term predictions for the world of technology.

Who doesn’t like to take out a crystal ball and see what the future holds, right? 🔮

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This time, we took a closer look at the shape of proptech and how it may evolve within the following years. 

A big help for that was the Precedence Research report, estimating the sector in 2022-2032.

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The global proptech market reached USD 30.16 billion in 2022. By 2032, it is expected to be worth around USD 133.05 billion, growing at a CAGR of 16% over the forecast period from 2023 to 2032. 

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A big part of this significant growth is the rocketing technology development visible in artificial intelligence (AI), Machine Learning (ML), Virtual Reality (VR), and the Internet of Things( IoT) in the real estate industry.

Here are the most attention-worthy drivers of the sector:

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Big Data, Big Insights

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Big Data analytics significantly helps real estate companies remain competitive. 

It can forecast demand for different types of properties in various locations and evaluate potential risks associated with real estate investments, such as economic downturns or demographic shifts, allowing stakeholders to mitigate risks effectively.

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Analysing comparable sales and rental data helps set competitive prices for buying, selling, or leasing properties. 

Big Data also enables personalised marketing by analysing customer preferences, search behaviours, and past interactions, leading to targeted campaigns and better customer engagement.

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Artificial intelligence keeps on rocking

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AI algorithms can analyse large datasets to provide accurate property valuations by considering location, property condition, market trends, and comparable sales. They can also help set optimal property prices by continuously analysing market conditions and demand fluctuations.

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Moreover, AI can automate the creation, review, and management of documents such as contracts, leases, and disclosures, reducing the time and effort required in real estate transactions and can detect anomalies and patterns indicative of fraudulent activity, helping to prevent fraud in property transactions.

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A big pro is also the ability to optimise property management tasks such as maintenance scheduling, energy management, and tenant communication, leading to cost savings and improved service quality.

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IoT (Internet of Things) allows incredible Things

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Another superhero in the proptech area is IoT, allowing us to monitor building systems (HVAC, plumbing, electrical) and predict maintenance needs, preventing costly repairs and downtime.

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The Internet of Things enables smart home technologies such as automated lighting, climate control, and security systems, enhancing tenant comfort and convenience. With mobile integration, tenants can control various aspects of their living environment (e.g., locks, lights, thermostats) through mobile apps, improving their overall experience.

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It’s also an excellent support for increased security, as IoT-enabled cameras and sensors can provide real-time surveillance and alerts, enhancing property security.

There are also IoT-based access control systems that can manage and monitor entry to buildings and individual units, offering greater security and flexibility.

One thing is sure - until 2032, the technology landscape will bring solutions we might not even be able to imagine right now.

And we’ll be observing it with a hefty dose of excitement.

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