![What is PropTech? 2023 Guide [+15 Fastest-Growing Startups]](/static/30b22f491351020676dc57eb2b3ed1cf/c74de/what-is-proptech.webp)
Property technology, or PropTech, is not just an emerging buzzword but a transformative force in the real estate landscape. In fact, the global PropTech market value was $25 billion in 2021 and is forecasted to grow over 15% by 2030.
This impressive growth trajectory underscores the sector's importance and the increasing reliance established real estate companies place on these innovations. PropTech is changing the way we buy, sell, and invest in property.
To help you stay ahead of the curve, in this guide, we’ll equip you with:
- 3 PropTech trends to watch in 2023
- 15 of the fastest growing PropTech startups
- Key benefits of PropTech solutions - now and in the future
Let’s jump in!
What is PropTech?
PropTech, or property technology, refers to the digital innovations and technological advancements that are disrupting and transforming the real estate industry. PropTech includes a wide range of applications, from online buying and selling platforms and property management software to innovative architectural technologies, smart home solutions, and even the use of drones for property surveys.
PropTech aims to make real estate transactions and property management more efficient, transparent, and user-friendly. This can be achieved by either improving existing processes using technology or by introducing entirely new business models.
To help you visualize the multitude of companies in this sector, the following PropTech market map displays top companies classified by their specific niches:
How is PropTech Changing the Real Estate Industry?
The real estate industry in 2023 is undergoing profound transformations powered by PropTech. The sector is not only digitizing but revolutionizing.
A few key ways we are seeing PropTech change the industry in 2023 are:
- Virtual Reality (VR) and Augmented Reality (AR): VR and AR have transformed property viewing, allowing global exploration without physical visits. This not only reduces costs but also lets agents tap into a broader audience. Augmented Reality adds value by letting users visualize potential property changes instantly, as seen on popular TV shows like Your Home Made Perfect.
- AI in Real Estate: Powerd-by real estate APIs, AI refine property searches by tailoring suggestions to buyer preferences. Highlighted by TechCrunch, its capacity for in-depth data analysis aids in risk assessments and real-time property pricing, benefiting both sellers and buyers.
- IoT in Modern Buildings: Modern buildings, powered by IoT, champion sustainability with optimized resource use. Enhanced security features bolster safety, and innovations like smart climate control and predictive maintenance elevate occupant comfort and building longevity.
The PropTech industry is vast, targeting a wide range of end-users, from real estate professionals to property owners and construction firms. The true power of technologies such as VR, AI, and IoT are in PropTech companies developing highly-targeted software solutions for specific subsections of the industry.
15 of the Fastest Growing PropTech Startups
As technology continues to weave its way into the real estate sector, a new breed of startups is emerging at the forefront, challenging traditional paradigms and setting new industry standards.
From AI-driven real estate data analytics to cutting-edge smart home solutions, these trailblazing PropTech startups are not just growing rapidly, but they're also shaping the future of real estate.
Here are 15 of the fastest-growing names you should be watching:
TurboTenant
Property management tool that helps landlords streamline their rental processes.
What you need to know:
- Offers features such as online rental applications, tenant screening, rent payments, and marketing
- Free for landlords and property managers, but charges fees to tenants for screening reports and rent payments
- One of the leading proptech tools in the US, with over 300,000 landlords and 2 million tenants using its platform
Kin Insurance
Modern home insurance company offering affordable prices thanks to their technology and direct-to-consumer model.
What you need to know:
- Focuses on providing coverage for properties in regions that are prone to natural disasters
- Member-owned insurance company
- The model of selling direct to customers and using unique technology allows Kin to keep costs low and pass savings on to the customer.
Homeday
Platform that connects property owners with the best local estate agents to sell their homes.
What you need to know:
- Uses a proprietary algorithm to match property owners with estate agents based on their location, property type, sales experience and customer ratings
- Offers sellers a free valuation service, a fixed commission rate and a satisfaction guarantee
- Backed by Project A, a leading venture capital firm, and has gained great traction in the German market, with plans to expand internationally.
HomeViews
PropTech tool that provides verified resident reviews of the UK's housing developments.
What you need to know:
- Helps property buyers and tenants to discover and compare developments based on the experiences of real residents
- Has over 10,000 reviews for more than 1,000 developments across the UK, covering different sectors such as build to rent, retirement living and student accommodation
- Works with developers, landlords and the government to recognise high performers and help to improve standards in the property industry with in-depth reviews and detailed insights
Acaboom
Market appraisal toolkit that helps real estate agents win more instructions and fees.
What you need to know:
- Covers all stages of the market appraisal process, from before to after the appraisal, with interactive presentations, personalized videos, local market data and digital agency agreements
- Provides smart follow-ups and client nurturing features, such as notifications, market update reports and feedback requests, to help agents stay in touch and top of mind with their prospects
- Offers bespoke designs and integrations to suit different agency needs and branding
Ohmyhome
One-stop platform for property transactions that optimizes the way people buy, sell, rent, research, market, or manage a property.
What you need to know:
- Leverages on its unique data matching technology to help homeowners sell at record prices and buyers find the right homes based on their preferences
- Offers a range of property services, such as agent services, renovation services, home services, e-signing, and Singpass verification features for security and convenience
- Leading proptech company in Singapore that has served over 13,100 families
Roofr
All-in-one sales toolbox for roofers.
What you need to know:
- Successfully targets a niche in the real estate market with modern, functional tech
- Offers accurate and affordable measurement reports with new features like multi-family ordering and faster turnaround times.
- Helps roofing companies generate both residential and commercial real estate leads automatically with its Instant Estimator, which gives instant quotes to potential customers based on their roof size and type
Pacaso
What you need to know:
- Founded by Zillow alumni Spencer Rascoff and Austin Allison, and has raised $215 million in funding from investors like SoftBank and Fifth Wall
- Differs from timeshares by offering true real estate ownership, flexible scheduling, and professional management services.
- Expanded to Spain as its first international market, and plans to grow in other popular second-home destinations around the world.
Briq
All-in-one financial automation platform built for the construction industry.
What you need to know:
- Aims to reduce spending, increase profitability, and improve efficiency for construction firms by automating repetitive tasks, simplifying workflows, and generating robust reports
- Integrates with existing accounting software and provides a cloud-based platform that looks like a spreadsheet, but with smart suggestions and alerts
- Offers a construction payments platform called BriqCash, which allows customers to send and receive invoices, track cash flow, and access physical and virtual debit and credit cards
Mynd
End-to-end real estate platform that helps investors find, buy, lease, manage, and sell residential investment properties.
What you need to know:
- The end-to-end management and real estate technology investment solution is powered by INVESTimate, a home-valuation tool that determines the investment potential of any home in the U.S. using AI and machine learning
- Enables investors to manage, buy, sell, finance, and insure their properties through its digital platform
- Targets Americans who want to access the single-family rental real estate market as a way to build generational wealth remotely and confidently
EliseAI
Conversational AI assistant that uses machine learning to automate the communication between prospective renters and apartment operators.
What you need to know:
- MeetElise’s AI assistant, named Elise aims to increase the conversion rates and productivity of leasing agents by handling incoming calls, texts, and emails from leads 24/7
- Integrates with various property management software and tools, such as Yardi, Entrata, Knock, and Latch, allowing the tool to access real-time data
- Their mission is to modernize the apartment leasing experience through artificial intelligence
Knock
Home trade-in platform for homeowners who want to buy and sell their homes at the same time.
What you need to know:
- Allows homeowners to sell their old home and buy a new one in one seamless transaction, targeting families who prioritize having a stress-free and seamless experience
- Offers a Home Swap program that allows homeowners to access financing from Knock to buy their new home before selling their old one.
- Knock covers the mortgage payments, utilities, taxes, and insurance for the old home until it sells
eXp Realty
Cloud-based real estate brokerage, offering agents the tools, technology, leadership, and community they need - all in a single digital platform.
What you need to know:
- Cloud-based real estate brokerage that offers virtual tours, 3D models, and floor plans to its agents and clients
- 4th largest and fastest growing realty brokerage in the US, with operations in Canada, Australia, and the UK
- Operates via a gaming-style, cloud-based virtual world called VirBELA, where agents can collaborate, train, and socialize with avatars
McMakler
PropTech startup that combines a personal, real-estate advisory service with digital tools to optimize the marketing and financing process for both sellers and buyers.
What you need to know:
- Uses artificial intelligence and algorithms to provide a transparent and realistic valuation of properties based on current market data
- Raised over €66 million in funding from investors such as Target Global, Israel Growth Partners, Baillie Gifford and Warburg Pincus, and has a valuation of €96 million
- Operates in Germany, Austria and France, and has over 350 local real estate agents in more than 100 locations, as well as over 500 financing partners
Pandaloc
Peer-to-peer real estate marketplace that flips the script and focuses on owners reaching out to potential tenants.
What you need to know:
- Landlords contact tenants directly, instead of the other way around. Tenants create their profile and describe their search, and landlords can reach out to them with suitable offers
- In addition to the peer-to-peer marketplace, Pandaloc provides free software for landlords to manage their properties, from online advertising to rent payment
- Aims to target the younger generation who may be more likely to rent than own real estate assets
Who Can Benefit from Property Technology?
It's essential to recognize that the advantages of PropTech aren't limited to just industry insiders. As we’ve seen above with the fastest growing startups, PropTech can target a wide range of end customers. Let's delve into a few of the key groups of people who can benefit from PropTech:
- Homeowners & prospective buyers: For those looking to buy a home or those who already own one, proptech offers enhanced search capabilities, virtual tours, and streamlined real estate transactions. In general, this group can benefit from a more modern, individualized home buying or selling process.
- Real estate professionals: Agents, brokers, and other professionals in the real estate world can capitalize on PropTech technology, from AI-driven market analysis to predictive pricing algorithms, enhancing their reach and efficacy in the market. For this group, it’s all about helping them sell more residential and commercial properties, thanks to greater efficiency, better market timing, and more effective marketing strategies.
- Real estate developers: With PropTech, developers gain timely insights into both residential and commercial market trends. Smart construction technologies mean efficient and adaptive project executions, aligning with the contemporary demands of buyers and businesses. Real estate tech stands to benefit this group by highlighting cost savings and routes to greater efficiency.
- Urban planners and local governments: PropTech solutions can provide urban planners and local governments with vital data-driven insights. This empowers them to design and govern cities that cater to evolving residential and commercial requirements. This group is looking for ways to better leverage big data to drive decision making.
- Residential and commercial real estate investors: For investors in both sectors, property technology companies enable better property valuation, risk assessment, and understanding market trends. Investors can also benefit from features like efficient property management tools, ensuring maximized returns for their residential or commercial investments.
PropTech's reach extends far beyond the primary real estate sectors, integrating advantages across diverse industries. Other groups that stand to benefit from tailored PropTech solutions include:
- Mortgage brokers and financial institutions: Automated and transparent loan processes.
- Construction companies: Enhanced project management via smart tech.
- Home maintenance companies: Proactive service through IoT predictions.
- Insurance agents: Tailored policies based on real-time property data.
- Facility managers: Efficient building management and optimized utility use.
- Architects and interior designers: VR and AR tools for better design visualization.
- Property managers: Digital tools for tenant communication and building maintenance.
- Relocation companies: Streamlined moving and housing solutions using digital platforms.
The Future of PropTech
The future of PropTech is not just about enhancing real estate transactions; it's about revolutionizing the way we interact with, invest in, and envision our built environment. As technology and real estate converge, we'll witness a smarter, more efficient, and personalized property landscape. Stay tuned, as the buildings of tomorrow will be deeply intertwined with digital innovations, making our cities more livable, sustainable, and adaptable than ever before.
Conclusion
The evolution of the real estate industry is intrinsically linked to the advancements in PropTech. With significant market growth and the emergence of influential startups, PropTech has solidified its role as a foundational element in modern real estate practices. Professionals and stakeholders must stay informed about these developments to remain competitive and capitalize on emerging opportunities in the sector.
Looking for a PropTech software development company? At SoftKraft we’ll work closely with you to understand your specific goals, map out a strategic solution, and build software efficently. Get in touch for a free project quote!