How to Transition from Real Estate to PropTech: A Guide for Real Estate Professionals
How to Transition from Real Estate to PropTech: A Guide for Real Estate Professionals
Part 1 – Exploring the PropTech Landscape and Career Transition Opportunities
The real estate industry is undergoing a massive transformation, driven by advancements in technology, sustainability, and innovation. PropTech (Property Technology) sits at the heart of this shift, revolutionizing how properties are managed, transacted, and developed. For professionals with a background in traditional real estate, transitioning to the fast-paced world of PropTech offers a wealth of exciting career opportunities.
But how do you effectively pivot from real estate to PropTech? In this article, we’ll explore actionable steps to help you make the transition, supported by data, expert insights, and industry trends.
- Understand the PropTech Landscape
The first step in transitioning to PropTech is gaining a comprehensive understanding of the industry. PropTech is a broad and rapidly growing field that encompasses a variety of technologies aimed at disrupting and improving real estate processes. These include:
- Smart Buildings: Smart Buildings use IoT and AI to create energy-efficient, responsive environments by monitoring and adjusting systems like HVAC, lighting, and security in real time. Platforms like Neeve.ai enhance energy optimization through AI-driven insights, Hereworks integrates IoT for dynamic workspace control, and Jooxter manages occupancy for efficient space usage. These technologies reduce energy waste, enhance occupant comfort, and improve safety, making buildings more sustainable and adaptable.
- ConTech: Encompasses a vast array of innovations, from drones and robotics to BIM and modular construction, transforming every step of the building process. Tools like DroneDeploy for aerial site mapping, OpenSpace with site documentation with 360° image capture for real-time project tracking, Procore for project management, and Dusty Robotics for automated layout solutions boost efficiency, safety, and collaboration. Meanwhile, AR/VR tools, wearable tech, and cost estimation software streamline logistics, on-site coordination, and financial oversight, creating a more efficient and integrated construction workflow.
- Real Estate FinTech: These solutions are transforming the industry with innovations from companies like Better.com for digital mortgages, Propy for blockchain-secured transactions, Roofstock for real estate crowdfunding, and PropTechAM.ai for AI-driven capital raising. Together, these tools make property investing and financing more accessible, enhancing transparency, efficiency, and security, and simplifying the entire transaction process.
- SaaS Solutions: Cloud-based platforms that help manage properties, improve tenant experiences, and streamline operations. Examples include property management software like Yardi and Altus Group, tenant experience platforms such as HqO, Witco, and Equiem, and maintenance tracking tools like Opago and Plentific, all accessible online for seamless collaboration and real-time updates.
- ESG & Sustainability Tech: Tools designed to help property owners meet environmental, social, and governance (ESG) goals, such as carbon accounting and green building solutions. Examples include carbon tracking platforms like Deepki and BuildingMinds, ESG performance management with Measurabl, asset sustainability software like Prescriptive Data (Nantum AI), and risk assessment tools from Predium, all offering insights to optimize environmental impact, compliance, and operational efficiency.
According to Allied Market Research, the global PropTech market was valued at $18.2 billion in 2020 and is expected to reach $86.5 billion by 2030, growing at a compound annual growth rate (CAGR) of 17.2%. With this explosive growth, there are ample opportunities for real estate professionals who can combine their knowledge of traditional real estate with a technology-driven mindset.
A 2023 report from Deloitte also found that 56% of real estate firms are actively investing in PropTech to improve efficiency, reduce costs, and address growing sustainability demands from tenants and investors.
- Leverage Your Real Estate Experience
Real estate professionals possess a depth of industry knowledge that is critical to PropTech’s success. Many PropTech companies actively seek individuals with real estate backgrounds, as their understanding of client needs, industry challenges, and workflow intricacies help develop, market, and implement solutions that truly resonate with users. This alignment between traditional expertise and innovative tech solutions is driving significant PropTech growth.
A 2023 Deloitte report found that 56% of real estate firms are actively investing in PropTech, underscoring a demand for professionals who can bridge the gap between conventional real estate practices and cutting-edge technology.
- How Real Estate Skills Translate to PropTech Roles
The skills honed in traditional real estate are more adaptable than one might expect in a tech-driven industry. Here’s how key areas of real estate expertise align with PropTech applications:
Acquisition / Fund Management
PropTech Application: Acquisition and fund managers typically analyze investment opportunities and manage property portfolios to maximize ROI. In PropTech, they are valuable in roles that involve investment platforms, data-driven portfolio management, and blockchain-powered real estate transactions.
- Market Insight: According to a report from PwC, FinTech platforms for real estate investment are projected to reach $7.6 billion by 2026, driven by demand for crowdfunding platforms and fractional property ownership models. Platforms like RealtyMogul and Cadre (acquired by Yieldstreet) leverage AI algorithms to analyze market trends and investment opportunities, democratizing access to real estate investments.
- Skills to Develop: Enhance your tech literacy by exploring solutions like VTS, a leasing and asset management platform, or Yardi, which offers integrated property management software. Familiarize yourself with blockchain technology as it’s transforming real estate transactions, offering enhanced transparency and reducing transaction costs by up to 30% (Forbes, 2023). Data analysis is key; proficiency in Tableau for data visualization or Python for predictive analytics can provide a competitive edge. Deepen your understanding of ESG reporting for investors by exploring courses from the Urban Land Institute or the CFA Institute. Lastly, familiarize yourself with asset management tech through Argus to understand industry-standard financial modeling and portfolio analysis for real estate.
Asset / Portfolio Management
PropTech Application: Asset managers focus on maximizing property performance and value. PropTech’s AI-driven portfolio management platforms such as Proda enable real-time analytics, tenant retention insights, and predictive forecasting.
- Market Insight: A 2022 study by JLL found that 80% of real estate investors now rely on AI and predictive analytics to make data-driven decisions about portfolio management. The same study indicates that integrating data science can increase portfolio profitability by 15-20% due to optimized tenant mix and enhanced risk assessment.
- Skills to Develop: Your skills should focus more on property-level and tenant-level technologies. Prioritize tools that enhance property operations (e.g., Stonal which enhances real estate data management to asset managers) and data analytics that provide insights into asset performance, tenant satisfaction, and operational efficiencies.
Property Management
PropTech Application: Property managers oversee the day-to-day operations of real estate assets, ensuring properties are well-maintained, tenant relationships are managed effectively, and financial objectives are met. In PropTech, they play crucial roles in platforms focused on tenant experience, property maintenance, and streamlined operational processes.
- Market Insight: The global property management software market is expected to reach $24.8 billion by 2027, with SaaS platforms gaining traction due to the increased adoption of cloud-based solutions. This growth is driven by platforms like HqO and Building Engines, which utilize AI to improve tenant engagement, operational efficiency, and predictive maintenance. DoorLoop, a property management software company, recently raised a substantial $100 million Series B funding round led by JMI Equity, further underscoring the sector's rapid growth and transformative potential.
- Skills to Develop: Developing familiarity with AI-driven tools in property management consider exploring courses offered by the PropTech Academy. .
Technical Management
PropTech Application: Technical managers can leverage IoT and Building Management Systems (BMS), such as BrainBox AI and Infogrid, to optimize building operations. These platforms use real-time data from IoT sensors to monitor energy usage, HVAC performance, and occupancy. By analyzing this data, BMS can adjust systems proactively, enhancing energy efficiency, reducing costs, and supporting sustainability through predictive maintenance and automated controls.
- Market Insight: McKinsey reported that smart buildings could reduce energy consumption by up to 30% by using data from sensors to dynamically adjust heating, cooling, and lighting. With IoT-enabled BMS, buildings can not only optimize energy but also extend the life of mechanical systems through predictive maintenance. . By automating maintenance tasks, IoT-powered systems have been shown to reduce operational costs by as much as 20%, according to Deloitte. Other platforms like SmartRent and Brivo integrate IoT for smart access, energy management, and security, enabling property managers to operate more sustainably and securely. Highlighting the significance of these tech-driven advancements,
- Skills to Develop: Proficiency in IoT devices, machine learning algorithms for predictive maintenance, and cloud-based energy management systems will be advantageous. Linkedin Learning as a few courses dedicated to the Smart Building space. Learning to work with energy management software can also help comply with ESG standards, which 85% of global investors now require for commercial properties (JLL, 2023).
Development / Construction Management
PropTech Application: Development and construction managers benefit from ConTech, which includes drones, robotics, and Building Information Modeling (BIM). Tools like Buildxact, an estimating and job management software, and PlanGrid, a construction productivity software, provide end-to-end project management, cost estimation, and real-time site monitoring.
- Market Insight: The construction technology market is expected to grow to $1.5 trillion by 2030, with the adoption of robotics and BIM leading to 20-30% increases in project efficiency (McKinsey, 2023). Drones in construction enable managers to monitor large projects with ease, while 3D printing offers 40-60% cost savings on materials.
- Skills to Develop: Develop skills in BIM software, drones, and 3D printing. Certifications in Autodesk Revit and Lean Construction practices can provide an edge in managing complex development projects with precision and efficiency.
ESG / Sustainability
PropTech Application: ESG managers are increasingly turning to PropTech solutions to achieve sustainable development and energy efficiency. Tools like Deepki and Measurabl offer ESG reporting and energy management for properties looking to achieve carbon neutrality.
- Market Insight: According to the Global Alliance for Buildings and Construction, buildings account for 36% of global energy consumption and 39% of CO₂ emissions. With smart energy systems, building managers can achieve 20-30% energy savings. An increasing number of investors (79%, according to JLL) prioritize ESG in their portfolios, creating a growing market for PropTech that aligns with sustainability goals.
- Skills to Develop: Proficiency in carbon accounting tools, renewable energy technologies, and ESG reporting software can position you to lead sustainable initiatives. Certifications such as LEED (Leadership in Energy and Environmental Design) are increasingly valued by PropTech firms aiming to develop or manage sustainable properties.
Valuation
PropTech Application: PropTech is transforming property valuation through automated valuation models (AVMs) and data-driven appraisals. Platforms like CoStar and HouseCanary utilize machine learning to assess property values in real-time, providing more accurate, data-backed valuations.
- Market Insight: Automated valuation models are set to become a $2 billion industry by 2028, as demand for data-driven valuations increases across real estate markets. According to PwC, using AVMs can reduce the time needed for property assessments by up to 50%, allowing valuation experts to handle more properties with greater accuracy.
- Skills to Develop: Learn to work with machine learning models and big data analytics platforms. Understanding AVMs and developing data analytics skills will help you accurately assess market trends and property values, which are crucial for valuation-focused PropTech roles.
Architecture
PropTech Application: Architects have the opportunity to adopt AI-driven design software and 3D visualization tools to create sustainable, user-focused building designs. Platforms like Autodesk Revit and AI-driven simulation tools optimize design workflows and increase precision.
- Market Insight: The architectural software market is expected to grow at a CAGR of 7.4%, reaching $11.6 billion by 2027. Integrating AI with architecture allows for data-driven designs that align with occupant needs and sustainability standards, reducing material waste by up to 30% (Architecture 2030).
- Skills to Develop: Mastery of Building Information Modeling (BIM), AI-powered design, and 3D visualization tools is essential for success. Gaining proficiency in AI-driven platforms like Spacemaker and PlanRadar enables architects to create efficient, eco-friendly designs that address the evolving needs of tenants and regulatory requirements for sustainable architecture.
As the world of PropTech continues to grow, networking becomes an invaluable tool for finding opportunities, staying informed, and establishing your presence in this cutting-edge industry. In the next article, I’ll dive into practical tips on how to build a robust network in the PropTech ecosystem. We’ll explore key conferences to attend, the most active networking groups and industry forums, top PropTech accelerators and incubators, and other proven strategies to maximize your connections. Whether you’re looking to gain insights, collaborate with experts, or even find your next role in PropTech, the upcoming guide will offer all you need to expand your network effectively in this fast-evolving space.
If you’d like personalized support in your search for a suitable role within the PropTech industry, feel free to email me your CV at jgomes@aviaryconsulting.com. I’ll review your experience and get back to you with guidance to help you make a successful transition into this exciting field.
The Rise of ESG Tech Companies: Transforming the Real Estate Sector
Environmental, Social, and Governance (ESG) criteria has gained significant attention as investors and consumers seek sustainable and ethical business practices. ESG tech companies have emerged as powerful catalysts of change, revolutionizing various industries. In this blog, we will explore how ESG tech companies are leveraging innovative solutions to drive sustainability, energy efficiency, and social impact within the real estate sector.
Sustainability in Building Design and Construction:
ESG tech companies are reshaping the real estate landscape by prioritizing sustainable building design and construction practices. They are introducing cutting-edge technologies and materials that reduce carbon emissions, conserve resources, and enhance energy efficiency. For instance, green building materials like eco-friendly insulation, solar panels, and energy-efficient windows are now widely used, minimizing the environmental footprint of buildings.
Furthermore, ESG tech companies are incorporating advanced building management systems that optimize energy consumption, monitor air quality, and regulate temperature. These smart technologies enable real-time data analysis, identifying areas for improvement and maximizing energy efficiency. Additionally, IoT-enabled sensors and automation systems are being integrated into buildings to enhance energy management and reduce waste.
PropTech Advancements for Energy Conservation:
ESG tech companies are leveraging PropTech to revolutionize energy conservation in the real estate sector. PropTech solutions like smart metering systems, intelligent lighting controls, and automated HVAC systems are enabling precise monitoring and control of energy consumption. Real-time data analysis helps identify energy wastage patterns and suggests optimization measures.
Moreover, ESG tech companies are introducing innovative software platforms that enable building owners and managers to track and manage energy usage across their properties. These platforms provide insights into energy consumption patterns, allowing stakeholders to make informed decisions on energy-saving initiatives. Furthermore, machine learning algorithms are being employed to develop predictive models that optimize energy efficiency based on historical data and external factors. Companies such as Metrikus, are building energy efficiency platforms with all the insights you need to make your building spaces efficient, creating positive change for occupants and the environment.
PropTech Jobs has highlighted EVORA Global as a leading sustainable real asset investment and finance consultancy and ESG software provider with specialist expertise in the real asset sector. Their vision is to accelerate the evolution and adoption of real estate sustainability to enhance the wellbeing of the planet and its people. Their mission is to establish sustainability and carbon as foundational factors for investment decisions.
Social Impact and Community Engagement:
ESG tech companies are not only focusing on environmental sustainability but also on social impact and community engagement within the real estate sector. They are employing innovative solutions to promote inclusivity, accessibility, and well-being for both residents and the surrounding community.
Co-living spaces are just one example that is gaining popularity, offering affordable housing options while encouraging communal living and resource sharing. ESG tech companies are developing digital platforms that connect residents, fostering a sense of community and enabling shared resources like common areas, tools, and transportation. Additionally, smart cities and sustainable urban planning are at the forefront of ESG tech innovations. These technologies focus on improving public transportation systems, enhancing pedestrian and cyclist infrastructure, and reducing traffic congestion.
Through innovative building design, energy conservation solutions, and community engagement, these companies are reshaping the way we construct, manage, and live in buildings. The convergence of ESG and technology is driving positive change, ensuring that the real estate industry becomes more environmentally responsible, energy-efficient, and socially inclusive. As investors and consumers increasingly prioritize ESG criteria, the influence of ESG tech companies will continue to grow, propelling the real estate sector towards a more sustainable and equitable future.
ESG talent is in demand:
With the growth of ESG tech companies over the last few years expanding across the UK, the demand for ESG professionals is rising as more companies recognize the importance of sustainable business practices. Proptech Jobs is committed to supporting companies pioneering ESG innovation in the Real Estate sector. In demand roles span across multiple verticals, including impact investing, research, asset management and sustainability data and reporting. We have some fantastic open roles on our platform, check out our high priority Senior Director - Green Finance role Here for more details.
Unlocking Success: How outsourcing remote software developers can empower early-stage UK and European tech start-ups.
Introduction:
In today's digital age, technology start-ups are thriving, and their success often hinges on the strength of their development teams. Finding talented software developers, however, can be a challenging task for early-stage companies. Fortunately, outsourcing remote software developers has emerged as a viable solution, offering numerous advantages for UK and European start-ups. In this article, we will explore the benefits, examples, and drawbacks of outsourcing remote software developers, along with the role of remote work and payroll platforms in simplifying the process of hiring internationally.
Benefits of outsourcing remote software developers:
- Access to a Global Talent Pool:
By outsourcing, start-ups can tap into a vast global talent pool. They are not limited to their local talent pool but can hire skilled professionals from around the world. This enables companies to find developers with specific expertise or niche skills that may be rare or in high demand locally.
- Cost Efficiency:
Hiring and maintaining an in-house development team can be expensive, particularly for early-stage start-ups. Outsourcing allows companies to significantly reduce costs by leveraging the cost advantages of different regions. For instance, outsourcing to countries like India, Ukraine, or Poland can offer competitive rates without compromising on quality.
- Scalability and Flexibility:
Outsourcing remote developers provides scalability, allowing start-ups to quickly adjust the size of their development team based on project needs. It offers flexibility to scale up or down as the business evolves, without the hassle of recruiting and training additional in-house employees.
- Faster Time to Market:
In the highly competitive technology industry, speed is crucial. Outsourcing accelerates the development process by enabling start-ups to access a larger talent pool and distribute tasks efficiently. With a remote team, companies can work around the clock, achieving faster time to market for their products or services.
Examples of Successful Outsourcing:
Several well-known companies have embraced outsourcing remote software developers with great success:
- Slack: The popular communication platform Slack outsourced its initial development to a remote team in Canada. This allowed them to focus on their core business while benefiting from the expertise of a dedicated team of developers.
- GitHub: GitHub, the world's leading software development platform, has remote teams across different countries. They have effectively utilized remote work to expand their talent pool, resulting in rapid growth and success.
Drawbacks of Outsourcing Remote Software Developers:
While outsourcing remote software developers offers numerous advantages, it is important to consider potential drawbacks as well:
- Communication and Collaboration Challenges:
Managing a remote team requires effective communication and collaboration. Different time zones, cultural differences, and language barriers may pose challenges that need to be addressed through clear communication channels and tools.
- Quality Control:
Maintaining consistent quality standards across a remote team can be challenging. Start-ups must establish robust processes, conduct thorough interviews, and establish clear expectations to ensure the outsourced team meets the desired quality benchmarks.
The Role of Remote Work and Payroll Platforms:
Remote work and payroll platforms have played a pivotal role in making it easier for start-ups to hire remote software developers internationally. These platforms offer features such as:
Collaboration Tools:
Platforms like Slack, Trello, and Asana facilitate seamless communication, task management, and collaboration, regardless of team location.
Remote Payroll Management:
Payroll platforms such as DEEL, Remote, and Papaya Global simplify international payroll management, handling local tax compliance, payments, and benefits administration.
We have highlighted 3 companies that have seen success in helping US, UK and EU start-ups help scale their engineering teams through remote workers from developing countries.
Andela is a prominent technology talent marketplace that focuses on connecting African software developers with companies worldwide. They have a rigorous selection process and offer access to highly skilled developers who can work remotely. You can check them out here.
Rafiki.works is a technology start-up that connects technical talent in Africa to companies in the UK and Europe. They partner with the world’s leading technical bootcamps to help place their graduates into international companies. They help global employers unlock value through skills-based recruitment, taking care of all HR functions, including onboarding, payroll, and compliance for remote employees. You can check them out here.
SovTech delivers bespoke software solutions for growing businesses that innovate using cutting edge technologies and cloud software. They have over 350 software professionals, and work with over 500+ international companies. They cover everything from web, mobile, hybrid app development, to maintenance and support. You can check them out here.
Upcoming UK and EU PropTech Events in the second half of 2023:
In the ever-evolving world of real estate and property technology (PropTech), attending industry events has become an indispensable strategy for start-ups, investors, clients and talent alike. These events provide a unique platform for networking, knowledge sharing, and fostering partnerships.
These gatherings bring together pioneers, disruptors, and industry leaders who are passionate about pushing the boundaries of technology in the real estate sector. Start-ups can showcase ideas, products, or services, gaining exposure to potential investors, mentors, and collaborators. These events often feature pitch competitions, hackathons, and demo days, providing unparalleled opportunities to secure funding, valuable feedback, and industry validation.
PropTech events also act as fertile ground for talent, serving as a platform for aspiring professionals, seasoned experts, and industry influencers. These events facilitate networking and relationship-building, creating opportunities for talent to connect with prospective employers, mentors, and peers. Start-ups looking to expand their teams can tap into a pool of highly skilled individuals who are passionate about driving change in the real estate industry. On the other hand, professionals seeking career growth can find avenues to showcase their expertise, gain visibility, and explore new job prospects.
With only 7 months left of 2023, we have highlighted some key events in the UK and EU that you shouldn’t miss out on:
14 June 2023- PropTech Vienna (Vienna, Austria)
PropTech Vienna offers a unique platform for keynotes, roundtables, panel discussions and pitches on the latest digitization trends in the Real Estate industry. PropTechs, Startups, Investors, Business Angels, VCs and Industry Associations in the CEE region will be in attendance. The event showcases 40 + speakers, 300 thought leaders, and 40 + PropTech start-ups. The event is right around the corner, tickets can be found here.
13-15 June 2023- PROVADA (Amsterdam, Netherlands)
Provada is known for being the largest real estate fair in the Netherlands. The event has 275 + exhibitors, 250 + speakers, and 24000 + visitors, ranging across project developers, investors, builders, architects to financiers, advisers, brokers and housing associations - and more than 70 municipalities, provinces and the central government and the public sector. You can purchase tickets here.
29 June 2023- BWT UK - (London, UK)
Built World Technology is an event curated by SPACE+ for progressive property leaders, landlords, occupiers and investors to tackle their built world technology challenges. Tickets can be purchased here.
6-7 September 2023- PropTech Connect (London, UK)
London’s PropTech Connect is Europes largest PropTech event that cannot be missed. 3000+ attendees, 100+ speakers, 1000+ companies and 15000+ meetings. Some of the biggest names in Real Estate attend the event every year, including Blackstone, CBRE and JLL. Their mission is to connect executives, investors and entrepreneurs shaping the future of real estate technology. Tickets can be purchased here.
7-8 September 2023- REAL PropTech Conference 2023 (Frankfurt, Germany)
The REAL PropTech Conference gives the largest overview of the construction and real estate industry in the DACH region of GreenTech, ConTech & PropTech. The event hosts a hackathon, where talents have the opportunity to compete to win a prize of 5,000 euros. At the same time, attendees can explore structured network and exhibition areas to experience various trends in real estate innovation. Tickets can be purchased here.
4-6 October 2023- EXPO REAL 2023 (Munich, Germany)
EXPO REAL is an international trade fair for real estate and investment, and offers the ideal platform for a constructive and forward-looking exchange for all stakeholders in the real estate industry. It brings technology start-ups and participants, experts and investors together directly, where PropTech start-ups can present their solutions, services and ideas for the property sector. You can purchase tickets here.
25-26 October 2023- Urban Tech Forward (Warsaw, Poland)
Urban Tech Forward brings together industry leaders on a mission to accelerate the development of net-zero cities. Designed to rethink spaces where people live and work, through the prism of decarbonisation and resilience, it brings together urban tech innovators, VCs, real estate developers, policy-makers and the most prominent entrepreneurs to shift the way we build and make real progress on achieving a zero-carbon future. You can purchase tickets here.
Overall, the PropTech industry is a vibrant and rapidly evolving space, and attending events within this ecosystem offers immense benefits for start-ups, clients, investors, and talent. From providing a platform for start-ups to secure funding and partnerships, to enabling clients to explore cutting-edge solutions that transform their operations, to connecting talent with opportunities for growth and learning, PropTech events serve as a trifecta for all stakeholders involved.
By embracing the power of these events, the real estate industry can forge new frontiers, drive innovation, and shape the future of property technology.
We at PropTech Jobs keep our fingers on the pulse, keeping track of industry trends, whilst identifying innovative start-ups looking to hire exceptional talent as they scale their operations. Keep an eye out for our latest job openings here.
Exploring the trends in the tokenization of Real Estate
What is real estate tokenization:
Tokenization of real estate is a growing trend that has gained significant traction in recent years. It refers to the creation of digital tokens that symbolize ownership or stakes in real estate properties. These tokens are commonly constructed using blockchain technology, which enhances transparency, security, and liquidity in real estate investments. This process allows for the division of ownership in real estate assets into fractions, and even facilitates fundraising through security token offerings conducted on decentralized cryptocurrency exchanges to trade these tokens. This mechanism also has the potential to eliminate intermediaries, heavy paperwork, associated costs, and the risk of fraud within the real estate sector.
How tokenization can benefit the real estate industry:
- Increase Accessibility:
One of the primary benefits of tokenizing real estate is the increased accessibility it offers to a broader range of investors. Traditional real estate investments often require large capital commitments, making them inaccessible to smaller investors. Tokenization allows fractional ownership, enabling individuals to invest in a fraction of a property, lowering the entry barriers and democratizing access to real estate investment opportunities.
2. Liquidity and Fractional Ownership:
Tokenization brings enhanced liquidity to the real estate market. By dividing properties into digital tokens, investors can buy and sell these tokens on secondary marketplaces, enabling them to exit investments more easily than in traditional real estate transactions. Fractional ownership allows investors to diversify their portfolios by investing in multiple properties with smaller amounts of capital, thereby reducing risk.
3. Global Investment Opportunities:
Tokenization of real estate opens up investment opportunities in international markets. Blockchain technology facilitates cross-border transactions by streamlining the process of transferring ownership and eliminating the need for intermediaries. Investors can access real estate assets in different geographical locations without the usual complexities associated with international investments.
4. Enhanced Transparency and Security:
Blockchain technology provides a transparent and secure environment for real estate transactions. Property details, ownership records, and transaction history can be stored on the blockchain, ensuring immutability and reducing the potential for fraud. Smart contracts, coded into the blockchain, automate and enforce terms and conditions, reducing the need for intermediaries and enhancing trust between parties.
5. Fractional Ownership and Shared Economy:
Tokenization aligns with the growing trend of the shared economy. By dividing real estate assets into tokens, multiple investors can share ownership and benefits, such as rental income or capital appreciation. This shared ownership model not only enhances liquidity but also promotes a more inclusive and cooperative approach to real estate investment.
6. Potential for Increased Real Estate Market Efficiency:
Tokenization has the potential to increase market efficiency by streamlining the entire real estate lifecycle. From property listing and fundraising to purchasing, selling, and managing assets, blockchain-based platforms can automate and digitize these processes, reducing paperwork, minimizing costs, and improving overall operational efficiency.
7. Regulatory Considerations:
The tokenization of real estate also presents regulatory challenges and considerations. Different jurisdictions have varying regulations regarding securities, property rights, and investor protection. Regulators are working to establish frameworks to govern tokenized assets and ensure compliance with existing laws. As the technology evolves, legal and regulatory frameworks will likely adapt to accommodate the tokenization of real estate.
The US market:
The US has led the charge of tokenization in real estate for the last few years, with frontrunner companies such as Roofstock raising $240m at a $1.9B valuation back in March 2022.
We have highlighted 4 leading US companies in this sector that are currently hiring for multiple roles.
Founded in 2015, Roofstock is a San Francisco-based real estate investment marketplace with a mission to make real estate investing radically accessible, cost-effective, and simple. With $5 billion in transactions since its launch. This puts Roofstock in a strong position to become the world’s leading real estate investment marketplace. Roofstock is currently hiring for multiple roles in the US across Engineering, Business Development, Property Management and Legal Counsel.
HoneyBricks offers investors a unique opportunity to gain exposure to the commercial real estate market in a new and exciting way. Through its platform, it allows investors to tokenize investments in approved projects, thus providing fractional ownership of assets backed by the Ethereum blockchain. HoneyBricks is currently hiring for multiple roles in the US and Canada across engineering, investor relations, marketing, product and operations.
Arrived is out to revolutionize the way we invest in rental homes and vacation rentals. The company seeks to make wealth-building through real estate more accessible through its streamlined and intuitive platform. Arrived is currently hiring in the US for product design and operations roles.
RealT is a fractional and frictionless real estate investment platform reinventing ownership. Investors around the globe can buy into the US real estate market through fully-compliant, fractional, tokenized ownership. RealT is currently hiring for 2 Full Stack Developers in the US.
The UK and European market outlook:
If we take take a look at real estate tokenization in Europe and the UK, there is a growing trend across the UK, Switzerland and Liechtenstein, with the latter being the first nation in the world to come up with a comprehensive tokenization law. The revolution is being led by blockchain firms that release security tokens supported by tangible property assets. Similar to stocks, these tokens symbolize ownership rights. Although cryptocurrencies remain largely unregulated in the UK, real estate security tokens are subject to regulation and are categorized as investment instruments.
We have highlighted 3 companies in the UK and Europe to keep an eye on.
Definder, is a leading innovator in the tokenization of Real Estate sector in the UK. Their Smartlands platform enables investors to participate in institutional-grade deals with a much lower buy-in threshold than investing directly through the same sponsors. Investors can position themselves alongside experienced asset managers and benefit from risk-adjusted returns.
Bricktrade is the UK’s first construction financing platform accepting cryptocurrencies for property investments. Bricktrade connects property developers with investors on a blockchain-powered real estate marketplace, allowing everyone to own a part of a property without any loans, deposits, and the standard paperwork.
Algae is a mobile application that makes it easy to invest in real estate investment projects through blockchain technology from as little as 10€. Their mission to democratize real estate investment at your fingertips. Algae is looking for a Co-founder COO to join their team. You can view the role on our platform here
Find the latest job opportunities in the PropTech industry on our website. We combine new technologies and human expertise to provide our clients and candidates with the best quality of services.
Artificial Intelligence (AI) in Real Estate
What is Artificial Intelligence (AI) in Real Estate?
AI technology refers to sophisticated algorithms and data analytics to make accurate predictions about future scenarios. What makes the use of this technology beneficial is the ability of a given piece of software to analyse and interpret that data to the point where it can then automate processes in more intelligent, creative and flexible ways. In the property market, this kind of advancement has yet to fully take place. However, artificial intelligence will re-design the property industry in the near future. In fact, numerous changes are currently underway: residential real estate agencies have now shifted to electronic platforms, artificial process optimisation and robotics are becoming increasingly important in the construction sector, while smart buildings with advanced building control are now prevalent in the field of facility management (Hajnal, 2020).
The real estate AI business is growing with new companies entering the industry at a high pace - from American Bracelet & Skyline AI to German Architrave GmbH and English LandTech. With more startups emerging in the sector, it is worth exploring new career opportunities being created, which we will discuss in more detail later in the article.
How is AI changing the Real Estate industry?
The real estate industry is experiencing a digital revolution that is affecting not only its nature in terms of the markets and work environments but is also influencing its progress. This tech disruption is closely linked with the emergence of a phenomenon known as PropTech. According to Siniak et al (2020), « PropTech is characterised by the massive implementation of emerging technology such as home matching tools, drones, virtual reality, building information modelling (BIM), data analytics tools, artificial intelligence (AI), Internet of Things (IoT) and blockchain, smart contracts, crowdfunding in the real estate sector, fintech related to real estate, smart cities, regions, smart homes and shared economy ». The utilisation of these technologies will not only improve the efficiency of operational tasks but also change decision-making processes. By recognising relationships and patterns in large data sets, the effects of possible future scenarios can be examined more closely.
By means of so-called Smart Contracts, relevant information from contracts and documents can be extracted and used meaningfully. This will increase the transaction speed and reduce the search and sorting effort. Accordingly, algorithms can check virtual data rooms for completeness or, in the case of a sufficiently solid database, identify suitable investment targets according to the portfolio matrix. In asset management, the possible use of artificial intelligence ranges from personalised customer contracts through contract management to intelligent building services management. In addition, property valuation, property management and facility management will increasingly change. Possible applications in these areas include simplified collaboration, peer-to-peer transactions, supply chain management and data management (PwC, 2018).
Types of AI innovation in Real Estate
- Advanced property analysis
AI-powered software can be a solution for improving the ability of a real estate business to provide accurate, comprehensive information about property to clients.
Skyline AI uses proprietary AI to collect data points from a variety of sources and analyses past transactions to help get a sense of which neighbourhoods are up-and-coming and which are heading for a potential downturn. By analysing property owner behaviour, this tool can also help commercial real estate investors find distressed properties, off-market deals, and opportunities for value creation.
2. Real estate brokerage
The residential real estate market is the field where AI has made the most spectacular progress. This section of the real estate market simply moved to virtual reality and numerous sites are increasingly replacing real estate agents’ jobs by structuring, filtering and introducing supply in a variety of ways. Machine-learning interfaces and chatbots are already benefiting a lot of businesses by collecting customer data and helping with improving lead generation and content marketing (Hajnal, 2020).
Springbok AI help organisations of all kinds and sizes get the most out of Artificial Intelligence by optimising their processes and/or exploring new growth opportunities with them. Whether organisations have no prior knowledge of the technology or already have resources dedicated to it, Springbok can help at every step of a company’s journey with AI.
3. Property valuation
The spreading of so-called non-traditional methods has been a feature of property valuation’s evolution over the last decade. Some of these methods include hedonic valuation, the use of nervous system networks and contingent valuation. Since AI has the ability to analyse patterns in vast amounts of data, it can be used to make reasonable predictions of the future value of a property. The methodologies, often described as «mass appraisal», are focused on the systematic and automatic analysis of broad databases, with self-learning models supporting them. The number of property attributes or market data points can exceed tens of thousands, which is definitely a kind of analysis no human analyst or market research is capable of conducting (Hajnal, 2020).
Enodo is an automated underwriting platform for multifamily real estate. Its machine learning capabilities can help clients calculate market rents, find comparable properties, and identify lucrative investment opportunities. For those considering doing renovations, it can also help estimate the future value of any added amenities.
4. Property Management
Real estate businesses can track rental and property listings, requests for maintenance, tenant applications, and other information with AI software. These results of the tracking can help to identify the most common maintenance issues, tenant characteristics and preferences, price trends in certain areas, and seasonal availability.
Proportunity offers a service similar to that of Skyline AI for those in the residential real estate industry. Operating in 50 markets, this tool gathers property value data, crime rates, transportation data, and school district ratings to fuel its automated valuation model and predict which properties and neighbourhoods will give you the highest returns.
Impact of AI on real estate recruitment
Although digital transformation in the real estate sector is still in the early adoption stage, the industry is nonetheless facing seismic shift (Piazolo et al, 2020). The implementation of technologies such as data analytics, artificial intelligence, machine learning and robotics are changing operations. Highly administrative roles and tasks that need a human effort (property agents for example) are becoming largely obsolete. This statement underlines that a task-based approach demonstrates how high the percentage of jobs is concerned: almost one in two jobs in the property sector.
However, thanks to the emergence of new technologies, new jobs will be created in the real estate sector as well. For example, the real estate industry has reaped tremendous benefits and development from data analytics and photo capturing technologies. As mentioned, digitisation is also driving employment and many new jobs will emerge as a result.
Some of the AI real estate companies currently recruiting are:
- LandTech, the UK’s fastest-growing Proptech company. Simplifying planning research and giving planners and architects all the information they need on a single platform. LandTech is currently looking for a Senior Software Engineer, who will be working in a cross-functional product development team, reporting to the Head Of Engineering.
- Architrave GmbH leads the digital transformation in Real Estate Management. They use high-level automation through Artificial Intelligence, efficient workflows and data-based decisions that significantly increase productivity with a fast ROI. Advantages other industries are now also benefiting from. Architrave is currently looking for a Senior JavaScript Engineer as well as a Customer Support Agent.
- Wayhome offers a completely new way for people to get on the housing ladder without needing to take out a mortgage. Homeowners get capital to buy a home worth up to eight times their income with only a 5% deposit. The open positions are in Tech (e.g. Senior Frontend developer) and Engineering (e.g. Senior Devops/Secops Engineer).
- Unity Technologies is the world’s leading platform for creating and operating real-time 3D (RT3D) content. Unity’s platform provides a comprehensive set of software solutions to create, run and monetise interactive, real-time 2D and 3D content for mobile phones, tablets, PCs, consoles, and augmented and virtual reality devices. Unity is currently looking for Senior Data Scientist, Software Engineer…
- Beyond Pricing is the #1 Revenue Management Platform for short-term rental owners and managers to acquire, keep, and grow revenue. Beyond Pricing are always on the lookout for talented developers and engineers.
- Localize is the world’s first real estate marketplace designed to level the playing field for homebuyers and renters — arming them with information once reserved only for savvy real estate pros. Localize is now hiring for Senior Data Scientist, Backend Engineer, Senior Business Analyst, and Client Success Manager.
It is important to mention that the IT positions require substantial previous experience, companies expect candidates to demonstrate varied knowledge of programming languages and a relatively impressive record of projects. On the Business Development side, positions mainly target senior-level professionals as the startups are expanding and therefore are seeking experienced leaders who would take the business to the new level, this is particularly true for the companies going global. Finance-related positions are quite rare in the sector with nearly all the positions centred around companies focused on financial solutions for homeowners.
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