PropTech: The technology that has revolutionised the property market

29 Mar 2022 | Blog

The property market is constantly developing given external societal changes that clearly affect supply and demand, as well as wishes, preferences, and needs. On the other hand, however, main changes within the industry are intrinsic as technological advances driven by the sector’s professionals mark turning points in the property market’s way of working and the services provided to the consumer.

In this respect, digitalisation has completely revolutionised the property market over the past 10 years. As Vicenç Hernández Reche, Tecnotramit’s CEO, pointed out in a recent interview: ‘Many companies aiming to become benchmark within the industry have disappeared completely over the years because of the unstoppable digital disruption.’ As is stated also by the author of the book ‘PropTech Revolution’ (Spanish title, ‘Revolución Proptech’): ‘large, traditional companies not only faced an already complicated digitalisation -subject they could no longer put off-, but they also needed to tackle start-ups whose origins were technological and conquering markets in a wide range of sectors and industries.’

The main culprit? The so called ‘PropTech’, expression from the words ‘property’ and ‘technology’. It can be defined as ‘a group of breakthrough technologies assigned to cover needs in the property field by optimising, improving, or reinventing any service essential to the sector.’

The origin of this concept is from the turn of the century with the emergence of platforms and companies such as Idealista, Rightmove, AirBnB, or Homeaway. They created a digital trend that ended the canons of a stagnant sector that had run out of innovative ideas concerning operations and relationships with clients. PropTech growth has intensified as of late, so much so it has become an archetype within the industry from which more traditional companies are drawing inspiration.

Vicenç Hernández Reche reflects in his last book, ‘PropTech Revolution’ -considerations concerning the property market’s transformations and innovations-, about all of the aforementioned aspects and many more. Profound dilemmas current to managing property sector companies are addressed, such as the needed leadership from more traditional companies, innovative models on how to generate significant changes, and what practices must be adopted in order to be disruptive in its own markets and other ones that are still to be explored.