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PropTech and 7 reasons to be happy about the future

PropTech: What is it?

PropTech is a composite of the words property and technology and is described as follows: PropTech refers to technological applications that optimise or innovate the design, construction, use, valuation, renting and leasing, buying and selling and management of buildings. 

Immowi is also considered a proptech company. We developed algorithms and use AI and big data in order to break down the wall between real estate marketing and sales and to deliver high quality leads for real estate professionals. 

PropTech makes the real estate market more transparent. For example, thanks to big data the value of properties can be determined more accurately and the risk for investors decreases. Sensors ensure more optimal use of properties and better energy performance. This is expected to increase the value.

The question is whether we can create affordable houses and healthy work environments with new technology and also contribute to climate objectives.

Rigid real estate market

Up to now, the real estate sector has not been known for being innovative. This is clear from the fact that while a buyer or tenant often looks online for a new home, the rest of the transaction takes place offline. Only 2% of consumers signed their purchase or rental contract digitally. 

PropTech is currently in the spotlight because it combines social innovations, technical, product innovations and new business models to solve societal issues related to living, working and life. 

Innovative barriers in real estate

The growth of labour productivity in the sector has been stagnant for a long time. Compared to other sectors, hardly any investments are made in research and development. Important explanations for this are:

-Long life of real estate: new technologies therefore only slowly replace the old ones.

-Capital-intensive: This makes it difficult for starting entrepreneurs with a good idea to enter the market. 

-Not a transparent market: Every property is different and there is relatively little public information available. As a result, there is less direct competition in the real estate market, which reduces the urgency to innovate.

New technologies drive innovation

Thanks to new technologies (such as sensors, big data and data analytics), the real estate sector can now innovate more easily. Under the name of PropTech, new technological applications are possible. Investments in PropTech companies have increased tenfold this decade and are expected to increase further in the coming years.

More transparency, better occupancy and additional services

PropTech makes real estate more transparent. Further development of digital market platforms for real estate will make it easier for market parties to find each other. As a result, transaction costs are falling and the value of properties is becoming easier to determine through data analytics. The occupancy of office buildings, for example, is improving as a result of better insight into their use through sensors. Free workplaces are easier to find by means of an app. Finally, there are benefits to be gained from digitising the administrative process.

Increased value through PropTech

PropTech can ultimately increase the value of real estate by:

-Higher rental income because the tenant is willing to pay a higher price per m2 thanks to the higher quality of the property, opportunities for more efficient occupancy and lower energy costs. 

-Lower risk for real estate investors. Big data improves the valuation of real estate. Moreover, the liquidity of real estate is increasing due to the further development of platforms. Finally, Smart Buildings reduce the risk of vacancy because these buildings are more attractive to tenants.

Users benefit

If we list all the new PropTech applications, it turns out that users are the ones who benefit most. A Smart Building better meets their needs and allows them to better control occupancy. Letting platforms enable shorter rental periods and lower transaction costs. The traditional role of the estate agent is therefore under pressure. Platforms can further digitise and take over this role.

From bricks to business

In order to meet the changing demand and the opportunities offered by PropTech, real estate investors will increasingly become like entrepreneurs. They will look beyond the value of the property, the duration of the lease and the creditworthiness of the tenant. A real estate entrepreneur has a business model with which he creates added value and ensures a lasting demand for his “Space as a Service”. 

Immowi Assistance

There is often an invisible wall between marketing and sales. Companies invest in marketing campaigns to generate leads, but do not take the right actions to turn those leads into customers. To remedy this shortcoming, the strategic online lead generator Immowi is adding a new extension: Immowi Assistance. Until now, we delivered high quality leads thanks to online marketing, but with Immowi Assistance we significantly increase the chance of these leads actually becoming customers. Thanks to this approach, companies that do business with us know how to convert their leads and have a platform where the leads are offered on a silver platter, ready to be converted into valuable customers.
Extremely result-oriented
We could make it easy on ourselves and be happy with just bringing in high-quality leads. But it’s frustrating when your hard work doesn’t follow through. Immowi’s great strength has always been that we are very results-oriented. Many marketers have a reputation for selling hot air, because they can’t substantiate their returns. We did that right from the start, and that’s why we were able to grow from one to more than 10 full-time employees in a very short period of time.
With MyImmowi we just go one step further than what classic lead generators do. We go to the point where a lead becomes a valuable prospect. We help our customers convert their leads into customers.
Entrepreneurial mindset always in mind
MyImmowi builds the bridge between marketing and sales. We Make it as easy as possible for the client to contact the lead. You have to keep them warm. If you let a few days or even weeks pass between the moment a lead shows interest in your product and the moment you contact that lead, you will lose him. Then your success ratio will remain low. So, we try to immediately set an appointment in the diaries of our clients’ salespeople. You have to strike while the iron is hot.
Letting sales people do what they do best
Sales people like to sell, but they thoroughly hate administration. They keep track of their leads, their appointments and their deals in Excel, or even with pen and paper. They only keep track of their own prospects. Many companies do not have a sales pipeline. So, you risk sending a quotation to a customer after a successful meeting, but ultimately missing the customer because you forgot to follow up on the quotation. You’re almost done, but because of the lack of a decent digital process you miss out on a customer – and therefore also on turnover.
We pick the low-hanging fruit for our customers. We automate the entire process from lead to customer, and put it into one clear dashboard. This way, as a business manager, you can follow everything from A to Z. How many leads does a campaign produce? How many of those leads drop out along the way? How many become customers? What stage is each lead in? The personnel cost of sales people is very high in many companies. If sales people do not lose time calling leads and recording appointments – which we do – they can focus on what they are really good at. And that is still selling, closing deals.
Measuring ROI to the euro
We bring marketing and sales under one roof. That way, you can make your campaigns much more effective. Imagine that your campaigns for one brand on Facebook and on Google both generate 10 leads, but that 8 of those 10 Facebook leads become customers and only 2 of those 10 Google leads. If you’re purely marketing, you won’t get that information and so you’ll continue to put the same amount of effort into Facebook and Google.
If you also include the sales part and you do get that information, then you can turn the right buttons, redirect your budgets and generate much more turnover.