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. 

 

  1. 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. 

 

  1. 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. 

 

  1. 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. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

by admin-proptech

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.

by admin-proptech

Sustainability & Emerging Technologies

Sustainability & emerging technologies: a revolution in the real estate industry

The push towards sustainable living has become tremendously prominent in the last decade. Not just amongst activists, but support for the cause has extended its roots into business models of startups, and investment decisions made by Venture Capitalists (VCs).  New players are constantly emerging in the fight to combat climate risk by providing sustainable living alternatives, and the growing number of Proptech companies across the globe are at the heart of this change.

Today's real estate industry is more dynamic than ever, and the need to adapt is imperative. The Proptech sector has been and will continue to be a catalyst in propelling real estate to the next level. To further aid the growing trend of sustainability within Proptech, sourcing the right experts and creating a culture to foster awareness and education about sustainable opportunities in property is vital in keeping the industry alive. As we now transition into the post-pandemic phase, we need to re-imagine the world of real estate in 2020 and beyond. With these efforts, Proptech can be navigated as a powerful tool to work in tandem with the changes happening in the world, instead of against it.

Sustainable real estate- the way forward

 "Sustainable development calls for concerted efforts towards building an inclusive, sustainable and resilient future for people and planet."- The United Nations (UN)

With its densely populated nature cities around the world have contributed to at least 75% of global greenhouse gas emissions (CO2). According to the C40/Arup Deadline 2020 report, energy usage in buildings accounts for more than 50% of total city emissions. High levels of emissions can be attributed to the inefficient management of buildings that come from the heating, cooling and electricity usage. The World Green Building Association (WGBA) particularly notes that ''upfront carbon- emissions released before a building enters its use phase- accounts for approximately 50% of the entire carbon footprint for new construction occurring in the next 3o years".

Buildings no matter what form, are here to stay and working towards creating and maintaining a resilient built environment is important. It is crucial to decarbonise buildings by adopting energy-saving and clean energy strategies to meet the goals of the Paris Agreement.

In the light of this, whilst we cannot completely eradicate the negative consequences of climate change, initiatives have come forward to encourage and inspire developers to innovate and improve how development processes are carried out from manufacturing, transportation of materials for construction and end of life phases of all built assets. Notably, BREEAM is a globally recognised method to assess the level of sustainability of new developments against a set of standards established to measure the environmental performance of buildings. A key part of BREEAM is its focus on sustainable values for built assets in three areas:

1) Reduction of carbon emissions

2) Low impact & high-quality design

3) Adaptability to climate change

4) Protection of ecological value and biodiversity

 

Proptech as a solution

Opportunities to take sustainability to greater heights are immense and the PropTech world stands to be a key player in this realm. The UK Proptech Association also highlights that COVID-19 has brought about a change in real estate where Proptech has prevailed in comparison to traditional real estate.

Investor appetite in the RE industry is also being influenced by climate change as we witness the general tightening of environmental, social and corporate governance (ESG) requirements. A 2020 PwC Emerging Real Estate Trends Report echoes similar sentiments, where "shareholders enquiring about the environmental impact of buildings has gone up five-fold". Clearly, investors are drawn to seek out solution-based companies.

Core values of these companies can be strengthened through building capacity from within by hiring talent to push forward their environment and social responsibility goals. At the end of the day, the people are the pillars of an organisation and embedding a strong culture of innovation amongst individuals will provide a comparative advantage.

When considering the issues that sustainable Proptech companies aim to solve, we can take a look at particular technologies that have been implemented.

Firstly, blockchain technology is a receiving interest amongst property professionals for smart contracts. To put it simply, smart contracts allow for the digital execution of deeds over a distributed ledger platform. Leaxcoin, for instance, is a global currency using Ethereum to manage real estate transactions from purchasing real estate to property registry. All of which can be done online! This can effectively reduce paper usage as well as speed up transaction processes which can then translate to cost-saving measures.

The Internet of Things (IoT) is another tool that is growing in popularity to incorporate sustainability into a building after it is built. For example, Google Nest is a proptech solution that is specifically consumer-focused on creating an energy-efficient home. The smart thermostat monitors your activity and builds a schedule around this data through sensors.

CarbonCure, a Canadian startup has developed a system to contain carbon dioxide within the cement used for buildings. As CO2 is injected into the cement during the mixing stage, minerals are formed to improve the compressive strength of the concrete. With stronger concrete, concrete producers can manufacture high-quality building materials and but also use less cement. This not only reduces emissions but also save costs due to lower quantities of cement being used.

When it comes to building and planning, VU.CITY uses 3D modelling techniques and data analytics, allowing city planners and developers to create models and immediately test their proposals within an accurate context. The platform essentially helps people visualise, analyse and collaborate to make better decisions for future built environments.

Skills and technology are complementary

We can agree that in an increasingly digitised world, many operations are becoming automated. It saves money, time, energy and the environment. However, technology is certainly not a substitute for human interaction. A candidate with the necessary core skills to understand, deploy & manage the technology will be a key differentiating factor generating problem-solving strategies.

For clean energy companies such as Greenbird and Arbnco, data is at the core in creating sustainable building technologies and smart cities. Implementing solutions based around the needs of customers are important for these companies and this is where software developers play a major role. Developers with a solid foundation in programming languages like Java and the ability to build backend services in a cloud-based environment are very much desired skills and are always in demand.

Whilst a good understanding of technology is needed, the changing landscape of real estate has prompted the need for a diverse skill set. Particularly within the aspects of sustainability, Proptech solutions need to be implemented at a strategic level and the robustness of this can be determined by hiring Innovation and Sustainability directors, as some large real estate management firms have done. These roles will be crucial and keeping up to date with the progression of the industry in the digital age and what tools can be used to examine the customer experience and the value extracted from real estate.

Overall, from an employment perspective, a high proportion of job roles within Proptech start-ups have remained live despite the uncertainties over the COVID-19 pandemic. Over the next few years, we can anticipate higher demand for specialists who will bring fresh knowledge and expertise to the forefront of the sustainable Proptech business.

Looking ahead...

Sustainable Proptech is a growing sector, and there is no denying that talent & expertise from other industries will be seeking out new opportunities in high-growth startup environments.

Human needs are constantly changing and Proptech companies offering sustainable solutions will place them in an advantageous position. But, the key difference here is the ability of these companies in carrying out strategic talent acquisition. This will help to build a talent pool that will support the values and growth of their business over time. Proptech startups must also ask themselves whether they are doing enough to develop a culture that people will want to be a part of in the long term?

The real estate industry is being shaken up and companies need to remain agile and get up to speed with current technologies in this environment. Proptech companies planning for the future should work towards attracting and retaining highly skilled experts as they venture into an age of embracing digital transformation.

 

by Marc