PropTech on Fast Forward

Ozant Liuky/Pixabay

Proptech's time hath arrived. Per latest global reports doing the rounds, investments in proptech startups (firms innovating property technology) have exceeded US$ 9.7 billion in the first half of 2021 already - the hottest H1(half-one) on record. 

The number of tech startups across the real estate industry has grown from below 2,000 to nearly 8,000 in the last 10 years, as real estate entities look to apply new technologies like computing power, analysis, automation and connectivity.

Countries with considerable growth in proptech include the USA, Brazil, China, India, the U.K. and Germany.

Yeah? What are Proptech Firms Bringing to the Screen?

Okay, so here's what we know. Though the real estate sector has been quite slow in embracing technology, the pandemic has erased that reluctance. Now, every real estate company has realised that technology is the future of the sector. 

As a result, we are witnessing better home searches, more free tools to zero in on the right property, 3D walkthroughs plus other digital assets to shortlist choices, and an array of digital tools to buy properties with secure payments and digital signatures. 

In short, proptech startups today have ensured that you can buy your residence without having to step out. Like ever. 

What's Next?

While there are numerous tech developments in property transaction and construction, one new direction caught our attention. 

Esusu, a startup founded by children of immigrants who saw how their parents were disenfranchised, is now helping people build credit through renting. 

Here's how it works - Esusu collects and reports on timely/delayed rent payments to major credit bureaus. In fact, the startup connects the three major credit bureaus -- Equifax, Experian, and TransUnion -- with 30% of the largest landlords on the National Multifamily Housing Council list in the USA. 

Rent is the most substantial monthly payment that a family makes regularly, and why should that information not be used to correctly rate credit for the rent payer?

Who Does that Help?

The underserved. People who do not have access to credit cards and other financial products to help them build credit scores, in order to qualify for housing finance and own or build their homes. 

So if one pays their rent timely for a reasonable period of time, it results in a healthy score that is acceptable to mortgage companies. On the flip side, it warns landlords of renters who are rent defaulters. 

A true win-win right there.