It was, therefore, no surprise that the digital solutions most often deployed during the initial expansion of tech-driven innovation in real estate centered around leveraging data and empowering channels of communication with customers. Businesses in the sector sought advantages in strategies based on having more and better-organized information than their competition. While this first generation of digital transformation did indeed add a considerable positive influence on profitability, the next iteration of technologies is introducing far greater avenues for transformation.
In many ways, there have been changes in customer behavior that have driven evolution in the real estate industry in recent decades. Whether one considers Gen X or Gen Y demographic of customers, transformation flowing from improvements in mobile connectivity and services facilitated by the internet were primarily responsible for the adoption of technology. With Gen Z being even more accustomed to these conveniences, such service enhancements have more than enough reason to advance further. However, some of the most interesting new possibilities that technology is enabling are proactive rather than reactive.
It’s not coincidental that real estate-related startups WeWork and Airbnb, are two of the most universally acknowledged and celebrated success stories of recent years(1). The opportunities for innovation within the sector are dramatic. Artificial intelligence and machine learning are empowering data-driven decision making, augmented and virtual reality are revolutionizing aspects as diverse as design – sales & sensors and IoT based systems are redefining possibilities in facilities management. ‘Prop tech’ – as these innovations and many more are being labeled – is emerging as one of the most groundbreaking transformation drivers in any sector of the economy.
Both customer-facing and internal processes of real estate businesses are entering an exciting new era of innovation. For instance, within the sphere of internal business processes, real estate enterprises are increasingly keener to adopt software solutions that enable a customized suite that encompasses listings, leads, and record management as well as CRM and ERP functionality. In an analogous fashion, virtually every single aspect of a real estate business is exploring possibilities for tech-driven enhancement that can radically enhance an existing business model. Not only are the resulting efficiencies compelling due to the upgrade they offer businesses, in comparison to their legacy operations, but the advantages being leveraged by early adopters are also resulting in improved results in performance metrics relative to their competitors.
An industry-wide consensus on the limitations of fragmented and isolated digital solutions targeting individual aspects of a real estate business is driving a preference for comprehensive solutions that can address the entire gamut of requirements in an integrated and synergistic manner. With each element of the business resulting in a direct and immediate influence on another functional attribute, few sectors are as vulnerable to the weakest link in their operations as real estate. Property 365’s extensive and powerful functionality is built on the core capabilities of Microsoft Dynamics 365. While being specifically configured towards industry-specific solutions, it also leverages previous learnings from the roll-out of similar innovations in other industries. The emphasis is on facilitating the entire gamut of interdependent functions and business avenues, from tech-enhanced marketing and property sales to the management of commercial real estate assets. Technology, in real estate, is a powerful tool that optimizes the potential for profit, streamlines customer-facing operations and allows for ease of access and operational control. Some of the most empowering technology-driven functional advantages for real estate enterprises include:
The many aspects of a real estate business are nearly all limited by the performance of related functions that fall within the ambit of the enterprise as a single entity. Truly dramatic operational advantages are only really possible in the industry, if the entire business operation is enhanced, rationalized and made internally coherent. This co-dependent requirement for a platform that can leverage individual innovations and an overarching solution concurrently requires the deployment of solutions that are comprehensive while retaining the possibility to incorporate further iterations of technology as they emerge.
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Technology improves real estate profitability by leveraging real-time data, empowering customer communication, and unlocking proactive operational advantages. The first generation of digital transformation focused on better organised information than the competition, which boosted margins. The next iteration introduces far greater opportunity through AI and machine learning for decision making, AR and VR for design and sales, and IoT for facilities management. Together, prop tech innovations optimize the potential for profit, streamline customer-facing operations, and allow for ease of access and operational control across every part of the business.
Prop tech is the label given to the wave of innovations transforming the real estate sector through digital technology. It covers artificial intelligence and machine learning for data-driven decision making, augmented and virtual reality reshaping design and sales, IoT and sensor-based systems redefining facilities management, and integrated software platforms covering listings, leads, records, CRM, and ERP. Prop tech is emerging as one of the most groundbreaking transformation drivers in any sector of the economy, with both customer-facing and internal real estate processes entering an exciting new era of innovation.
Artificial intelligence and machine learning are empowering data-driven decision making across the real estate sector. Rather than relying on intuition or fragmented spreadsheets, real estate businesses can now use AI to surface insights about pricing, demand, tenant behaviour, and portfolio performance. The shift from reactive to proactive operations is one of the most interesting new possibilities technology is enabling. AI models also help identify properties or deals that match very specific buyer or investor criteria, which lifts conversion rates and reduces the time spent on opportunities unlikely to close.
Augmented and virtual reality are revolutionizing aspects of real estate as diverse as design and sales. AR and VR enabled house-hunting is one of the clearest examples, since prospective buyers can walk through a property virtually before committing to a physical visit. Designers can also use AR to overlay proposed changes on existing spaces, which accelerates planning approval and client buy-in. With customer bases displaying a full-spectrum and insatiable appetite for technology, AR and VR have become next-gen conveniences that the most competitive real estate businesses are already deploying.
IoT and sensor-based systems are redefining possibilities in facilities management. Connected sensors across a property capture data on energy use, occupancy, temperature, air quality, security, and equipment health in real-time. Building managers can act on the insights to optimise utility costs, schedule predictive maintenance, and respond faster to incidents. For commercial real estate owners juggling sustainability goals and tighter regulatory environments, IoT becomes a foundation for both compliance and operating cost savings. Smart building solutions also lift the value of the asset itself in the eyes of tenants and buyers.
Customer behaviour has driven evolution in real estate over recent decades. Whether considering Gen X or Gen Y, transformations flowing from improvements in mobile connectivity and internet services were primarily responsible for technology adoption. Both generations grew accustomed to researching property online, using digital communication, and expecting fast responses. Gen Z is even more accustomed to these conveniences. The result is a customer base that simply will not engage with real estate businesses still operating on legacy processes, since their entire expectation of service is shaped by digitally native experiences elsewhere.
WeWork and Airbnb are two of the most universally acknowledged and celebrated success stories of recent years. It is not coincidental that both are real estate-related startups. Their stories illustrate the dramatic opportunities for innovation within the sector when technology is applied imaginatively to traditional property models. Both companies built platforms that connected supply and demand in entirely new ways, unlocking value from existing real estate stock without owning all the buildings themselves. Their scale shows what is possible when real estate meets technology with genuine ambition.
An industry-wide consensus is forming on the limitations of fragmented and isolated digital solutions targeting individual aspects of a real estate business. The preference is shifting to comprehensive solutions that address the entire gamut of requirements in an integrated, synergistic manner. With each element of the business directly influencing other functional attributes, few sectors are as vulnerable to the weakest link in their operations as real estate. Truly dramatic operational advantages are only possible when the entire business operation is enhanced, rationalised, and made internally coherent through one connected platform.
Property 365 is a real estate platform built on the core capabilities of Microsoft Dynamics 365 and configured specifically toward industry needs. The extensive and powerful functionality leverages previous learnings from the rollout of similar innovations in other industries while focusing on the unique demands of real estate. The emphasis sits on facilitating the entire gamut of interdependent functions, from tech-enhanced marketing and property sales through to the management of commercial real estate assets. The result is one platform that supports listings, leads, record management, CRM, and ERP together rather than in silos.
Intwo helps real estate businesses with technology through Property 365 built on Microsoft Dynamics 365, plus the wider Microsoft cloud ecosystem. As a Microsoft Solutions Partner and Azure Expert MSP our team handles implementation, AI and AR integration, IoT for facilities management, and ongoing support. We also cover manufacturing, distribution, retail, and professional services alongside retail. The goal is to help real estate businesses perform to their optimum potential through one integrated, prop tech ready platform.
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