The latest buzzword in the property sector is PropTech and within the past few years technology has been challenging the way people view and purchase properties. The construct of PropTech is simple- start-up companies begin listing properties on their apps and websites after entering into partnerships with established and highly reputable estate agents, the end result? Companies such as: Zoopla, Purple Brick & Housesimple.com are born.
In most recent times, not only have these companies found their footing in what was once a niche market, they have begun extending into other aspects of property business such as: handling property viewings, negotiating offers of which all occur online. After the initial start-up phase, most PropTech companies can keep relatively low overheads which can be reinvested into making sure servers and apps are updated with the ability to handle extreme amounts of traffic during peak times. Social media, smartphones and the ever-growing influence of the internet has almost rendered traditional housing estate agents obsolete.
Virtually all searches for properties begin online so it relies upon real estate agents to keep up with the industry investing a variety of tools to remain on trend and not to fall behind its competitors. The stronghold that PropTech companies possess within the market looks set to soar further in 2019, despite the uncertainty of the current UK property market due to Brexit. Currently, it’s reported that online real estate owns 5% of the current market which is projected to reach between 15 to 20% by the year 2020.