The field of property investment is ever-changing in the UK, and as future investing varies, technology will continue to grow alongside property companies. It has been predicted that a swathe of talented entrepreneurs with ideas on how to optimize the industry will migrate, and funding will increase for startups as they converge with the market to forge new ways to invest.
To be successful with investment in the future and enjoy a varied portfolio, proptech must be adopted into your investment techniques, and intertwine with the traditional investment methods. But what exactly is proptech, and what options can it give investors for the investment opportunities of tomorrow? Check out our guide, with some modern methods on how to make the most out of your investment.
What is proptech?
Proptech is a term that refers to the development of new innovations in technology, products and apps in the property investment industry. Technology is one of the major developing arms in many sectors at the moment, and property is no different. Proptech is a bit of an abstract concept and can mean a bunch of different things.
- Proptech in Software can refer to any of the website or app that simplifies the investment process and helps to connect potential investors, landlords and tenants. Examples of these include intuitive end-user smartphone apps such as Airbnb or WeWork, or detailed information packages on investment properties for buyers to view online.
- Physical, hardware developments in proptech are also helping every step of the way. As the ‘internet of things’ becomes more popular within the home and workplace, tech such as smart lighting and camera security systems are growing in popularity.
How might proptech help me make an investment decision
Making a decision on a property that is sometimes thousands of miles away can be difficult, particularly for international investors This is emphasised even more so when considering that a lot of promising developments are off-plan – meaning that the investment project is still in planning stages.
While there are many benefits to off-plan investment, including early-bird access to a developing area and typically a reduced cost. There is still some understandable doubt surrounding what the finished product will look like, and how long it will take to be completed before you can start making money back in the form of rental yield from tenants.
Virtual reality and its integration into proptech and property investment is helping to bridge the gap between these investors and their development aspirations. By giving potential buyers an authentic, first-person insight into what a project will look like, property investment companies such as RW Invest can better help people make a well-informed decision on their investment going forward.
One popular sector that proptech is integral in going forward is the increasing demand for ‘smart buildings’. Tenants and landlords that want to be more environmentally conscious and energy-aware are investing in buildings with features such as intelligent security systems, energy management and insulation, and lighting. These sorts of buildings are popular commercially and more cost efficient going forward, making them more attractive to tenants in the future.
Another prediction made for proptech and its place within your potential investment is the focus that future development will have on the digital connectivity of a completed building and apps for the end-user. Looking at accommodating these features should be crucial for an investor who wants to future-proof their property, as the ability to alter a building’s amenities through smartphone control will again no doubt entice tenants.