The real estate industry has seen remarkable advancements in PropTech, with a focus on using technology to improve and streamline processes across four key sectors. These sectors serve as the foundational bedrock for innovation in real estate technology, ranging from construction to sales contracts. This article delves into the realm of Non-Core PropTech and its impact on informing the practices of the planning and construction industries.
The landscape of PropTech is continuously changing, with new start-ups emerging and disappearing regularly. As with all technology-based industries, certain sectors tend to adopt and leverage tech on a much larger scale than others, leading to the emergence of trends.
In the PropTech ecosystem, four sectors currently serve as the foundations upon which start-ups and agents are shaping new policies, processes, and practices across the real estate industry. These four sectors can be categorized as Non-Core PropTech and Core PropTech.
Non-Core PropTech, also known as RealTech or Construction Tech, is focused on how real estate is planned, built, and interacted with. On the other hand, Core PropTech is more consumer-driven and focuses on how real estate is consumed, transacted, and owned.
Let’s take a closer look at the two sectors that fall under the Non-Core PropTech category.
NON-CORE PROPTECH (REALTECH / CONSTRUCTION TECH)
SECTOR 1: URBAN PLANNING
The future sustainability of Australian cities, given our status as one of the most urbanized countries on earth, heavily depends on effective urban planning. However, our rapidly growing population is putting increasing strain on critical urban infrastructure, including transportation systems, energy, air quality, and water supply.
As urban planning is set to play a crucial role in the real estate industry’s future, smart businesses have recognized the importance of utilizing technology to streamline the management of this massive ongoing undertaking.
KEY TECHNOLOGY:
- AR
Urban planners, property developers, and regulatory bodies can leverage the power of Augmented Reality (AR) to convert data points into an immersive visual experience. By doing so, they can gain insight into how a proposed construction project may impact the local area’s various aspects, including traffic flow and utility services such as electricity, gas, water, and sewage.
Since providing these services can potentially overload the existing networks, urban planners and utility providers have turned to AR technology to translate data into 3D visual representations. This approach enables all stakeholders to understand the requirements of the project and visualize how proposed solutions could work, promoting effective collaboration towards a successful outcome.
- BEACON
Beacon technology is currently being utilized to develop micro-location data sensors that gather and store information on a cloud. This data is then combined with personal data from mobile devices to provide customized services relevant to the user. Proximity data collected from Beacon technology provides insight into user interactions with their mobile devices, as well as the context surrounding those interactions. This technology allows stakeholders such as governments and local businesses to better understand citizen behavior and needs.
Melbourne is currently in the process of becoming a smart city and has partnered with Vision Australia to trial Beacon technology. The goal of this partnership is to enhance communication, increase accessibility to services, and improve the overall quality of life in the city.
SECTOR 2: DESIGN AND CONSTRUCTION
Design and construction are crucial elements in shaping the appearance and functionality of a property. These practices determine the aesthetic appeal, longevity, and lifestyle options available for occupants. Therefore, designers, builders, and developers are continuously seeking technological advancements to improve the quality of construction, ensure compliance with relevant codes, and enhance the property’s overall appeal.
KEY TECHNOLOGY:
- IoT
The Internet of Things (IoT) is a network of interconnected computers, sensors, and intelligent devices that communicate with each other and a cloud storage system to collect, analyze, and evaluate data. The data generated through this process is then utilized in various ways, such as managing a building’s energy consumption, as well as determining the preferred design and style of dwellings in a particular geographic area.
As a result, this has an impact on building design and construction practices, leading to the creation of efficient and appropriate structures that will be integrated into “smart cities.” In these cities, infrastructure, essential services, healthcare, and residents are all connected through the IoT, creating a seamless network of information and technology.
FINAL WORD
The emergence of Non-Core PropTech is revolutionizing not only construction practices but also the development of Smart Cities that promote interconnectivity and easy access to services. This trend is expected to significantly enhance the liveability of cities in the future, and as technology in these two sectors continues to evolve, further innovation is anticipated in the way towns are planned and homes and apartments are built.
Stay tuned for our next article, where we’ll provide an in-depth view of the four primary sectors that constitute PropTech. These consumer-driven technologies are transforming how properties are discovered and acquired, and we’ll provide an insider’s perspective on this exciting development.
