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If you ask this question to an average proptech startup's CTO, the answer would probably be no, and that's because techies know little about the real estate market their tech aims to serve.
In fact, you should not be surprised if you hear a techie say that the next 100k lines of code coming out of his computer will change the economy. Thankfully, that's not how it works. 😅
3 Big Ways The Economy Is Shaping Proptech
💻 Interest Rates: When interest rates drop, property sales skyrocket, meaning proptech is busy in search and discovery, and transaction enabling development. This is also a time when real estate companies are flushed with money and hiring is at peak.
However, as interest rates increase, transactions and revenues drop, leaving lesser money on the table for manpower. Proptech now needs to refocus its faculties to create tech that replace manpower as much as possible.
💻 Macroeconomic Trends: In the last two years, the Delta-Omicron tag team have radically changed the macroeconomic environment. First, as office realty went into suspended animation and home ownership got front row tickets, rent-to-own solutions and alternative financing tools, became proptech priorities.
Also, socially-distant tools to manage construction sites accelerated the adoption of AI-driven site monitoring tech.