It’s long been no secret, that construction and real estate are two of the most relevant sectors in the global economy.
These two categories are the Yin and Yang of the urban world we build, that encompasses where we live and work. PropTech, or property technology, refers to the adoption of technology to improve the way we buy, sell, and manage real estate. This includes online platforms for buying and selling properties, virtual tours, and other tools that make the real estate process more efficient and convenient.
ConTech on the other hand, refers to the use of technology to enhance the way we design, build, and maintain buildings and infrastructure. This includes, in turn, the use of advanced materials, robotics, and other technologies to make construction faster, safer, and more sustainable.
According to a recent analysis by Grand View, the worldwide building and construction tapes market is expected to reach USD 6.13 billion by 2027. It is estimated to display a CAGR of 4.5% over the forecast period.
The global real estate industry was valued at USD 3.69 trillion in 2021 and is predicted to increase at an annual compounded growth rate (CAGR) of 5.2% from 2022 to 2030.
What goals are PropTech and ConTech startups solving in the Built World?
More and more real estate and construction companies are using technologies from PropTech and ConTech ventures. But for this, it is important to understand what goals PropTech and ConTech industries are pursuing.
Transparency – for transactions like buying and selling property.
First and foremost, PropTech technology can ensure transparency. For instance, it can submit data that assists consumers and companies in making educated property decisions. In addition to that, property technology may assist simplifying communication between buyers and sellers, making the process more efficient and accurate. But probably the most obvious goal is to allow agents and brokers to interact with more potential buyers as well as sellers.
Easy said, PropTech helps the old-fashioned sector in evolving and adapting to changing times. It’s becoming clear that technology will play a critical part in the future of real estate.
Technologies and Trends
AI and machine learning
Artificial Intelligence for example can generate predictions and can improve decision making for real estate maintenance and commercialization.
Virtual Reality and Metaverse
Thanks to VR, it’s possible to create simulated environments to provide potential clients visualization of how the final property will look like. This will improve the home buying experience for clients.
This technology has the potential to greatly improve the real estate business by removing the need for middlemen and bank checks while also protecting against fraud and data breaches. Simplified, the use of blockchain will streamline property transactions.
According to Finledger, a record $13.1 billion was invested in real estate tech and proptech businesses during the first half of 2022, with industry venture financing growing by 5.65% ($700 million) compared to the first half of 2021.
In the ConTech industry, modern technologies are increasingly being used to speed up processes and reduce construction, as well as operating costs. ConTech allows traditional building procedures to be advanced by new software and hardware innovations.
If you haven’t worked in the construction industry in recent years, you might be surprised at how technologically advanced it has become, with new developments altering the game every year.
Some of the goals of ConTech include include improving efficiency, reducing waste and errors, and enhancing collaborations among team members.
Technologie and Trends
The Green Construction
Green construction is a mega trend already generating excitement in investment rounds, and more ConTech businesses are concentrating on assisting in the development of sustainable, energy-efficient homes. And it has to be said, that this implies smarter, more sophisticated appliances.
There are many technological trends out there, already existing and evolving every year that support these goals. Some of the most popular trends in this industry are listed here. So, let’s take a deeper look at it.
AI and machine learning
These technologies can be used in the built world to identify possible issues by drawing on information from prior projects or data in the system. Artificial Intelligence for example can generate predictions and can improve decision making for construction processes.
Virtual Reality and Metaverse
Because of VR, it is possible, to create simulated environments on your computer. VR and the Metaverse are a virtually-designed world, with less physical constraints, which might lead to more inventive concepts of how the built environment should appear, function, and work for humans in the future.
The popular technical trend of 3D printing shortens construction time and enhances sustainability. Moreover, 3D printing has the potential to alleviate the housing crisis.
With a worldwide market value of $13 trillion, construction is one of the world’s major sectors, accounting for 13% of global GDP. The construction industry is growing and growing and won’t stop in the near future, since it is at a 7% CAGR.
It is easy to see, that in our fast-moving technological world, we need companies with the necessary knowledge for the Built World. With the help of sustainable and fast-learning technology, it is possible for us to make our world a better place.