There are several PropTech softwares currently changing the property development world, and with funding in the sector rapidly increasing – in 2019, for instance, global funding for PropTech reached almost $14 billion – this trend shows no sign of slowing down anytime soon.
PropTech softwares range massively in scope, scale and purpose (a function of the term’s broad definition) so we’ve compiled a list of 5 of the most disruptive, innovative and transformative PropTech softwares currently on the market. Firstly, though, what is PropTech?
What is Proptech?
Space Plus one of the leading event organisers in property space, said : “ Property technology (or PropTech) is any technology, software or hardware that can be used to streamline, improve or optimise real estate or property needs. There’s no one set definition for the term, however proptech can generally be categorised into one of four separate areas: “
- Smart Buildings
- Shared Economy
- Information Aggregators
- Efficiency Drivers
Smart Buildings
Smart building PropTech includes everything from IoT sensors, through to cloud-based computing, artificial intelligence and both virtual reality (VR) and augmented reality (AR). Smart technologies enable predictive maintenance, better occupant satisfaction, improved efficiency, and reduced downtime.
Shared Economy
Arguably the most well-known example of a company utilising PropTech to facilitate its shared economy strategy is AirBnB, which utilises a decentralised, peer-to-peer business model that’s made possible using PropTech solutions.
Data Aggregation and Validation
In today’s world, big data has a significant impact on the way the property market is shaped. PropTech software which aggregates information and data enables property developers to make better, more informed decisions on potential assets and investment opportunities.
Efficiency Drivers
A 2019 report by KPMG found that across development, asset management, and investment and financing, the single-largest predicted driver for increased investment in PropTech solutions was that of improved efficiencies. This could be software that enables space optimisation, through to software that highlights and improves a building’s overall energy efficiency.
What Are the Most Important Functions of Property Development PropTech Software?
Property developers require PropTech solutions that: help them find property more quickly, better visualise and plan their developments, and software which enables more easy connection with contractors. In other words, developers want site finding tools, procurement tools, mass modelling tools and even construction management tools.
Site Finding Tools
Prospecting for new investment opportunities has traditionally been a time-consuming and laborious process for property developers. With PropTech platforms like Landstack, however, seeking out data on planning applications, allocations and land availability assessments has been made much easier.
Procurement Tools
Platforms such as C-Link make it quicker and more straightforward for small to medium-sized property developers to procure the services of vetted contractors for their projects. Given how difficult the procurement process has become for buyers in recent times – thanks to the supply chain problems caused by Brexit and the Coronavirus pandemic – any PropTech solution that streamlines this aspect of development is welcome.
Mass Modelling Tools
Software like VU.CITY and other similar PropTech modelling tools enable developers to appraise sites more quickly, speed up the planning process, and save both time and costs. What’s more, such modelling tools make it easier for investors to see and understand the potential a development holds; that makes selling or leasing earlier on in the development process much more likely.
Construction Management Tools
With regards to managing a development project, developers want to be able to closely work with their constructors, architects and project managers. Software like Fonn enables project collaboration, provides the Scope of Works (or WBS) all in one place, and give management tools including Gantt Charts and spreadsheets.
Cloud-Based PropTech Solutions
Increasingly, PropTech companies are switching to cloud-based computing to offer their clients greater flexibility and cost-effectiveness. Popular property SaaS (Software as a Service) include: Notarize, PlanRadar, AlphaFlow and Leasecake. The 5 PropTech softwares we’re particularly interested in, though, here at SPACE+, are listed below.
5 Property Development PropTech Softwares
C-Link is an intuitive, easy-to-use procurement platform which enables property developers and buyers to easily connect with contractors to get the materials and workers they need for their development. Alongside this, C-Link also provides a supply chain CRM to keep everything in one easily accessible location, as well as the ability to automate both tenders and contracts.
Pricing: £199p/m for their Network package (billed annually)
The self-billed “future of real estate finance”, Fandango provides a platform for borrowers, within the real estate market. Utilising a secure cloud platform, Findango offers an end-to-end software solution so that borrowers and lenders can more easily connect, communicate and deal with one another. Although currently focused primarily on borrowers, the company states that options for brokers will be made available “in the future”.
Pricing: 0.25% commission
Using data from a variety of providers, including Bing, the Environment Agency, the Land Registry, Ordnance Survey and Royal Mail, Landstack provides developers with standardised planning data in one location. Combining features listing land boundaries, local planning, land ownership, constraints and more, Landstack makes it easier for developers to get more accurate, detailed reports of potential sites (and the obstacles, therein) at an earlier, more helpful stage.
Pricing: N/A
Fonn is a construction management tool software that offers solutions for virtually everyone involved within the real estate sectors, including contractors, architects and, of course, property developers. With a plethora of useful features, not least of which the ability to import and view ifc files from your computer, tablet or phone, Fonn offers an all-in-one project management solution, and even if you cancel your subscription, all data which was available to you continues to be so for a period of 12 years (in read-only format) regardless of your subscription status.
Pricing: £249p/m (for businesses with £1 million turnover)
Aprao is an intuitive software that offers developers a tool to carry out appraisals more quickly and easily. Providing developers with the ability to run financials from anywhere, easily share information with one live document, and create data-rich reports, Aprao’s software has been used by the RICS, Home Builders Federation, United Trust Bank, Kitewood Estates and more. One of Aprao’s property developer clients stated that it saved their firm “80% on the time taken to run appraisals.”
Pricing: Free (for basic package), £299p/m for grow package, £1,499p/m for professional package
Final Thoughts…
PropTech continues to advance at a startling rate, with it estimated that the PropTech market will account for over $85 billion by 2032, with an annual CAGR of almost 17% when compared with the 2022 market size. Clearly, then, this is an industry that will carry on developing and offering property developers new and innovative solutions regarding finding new investment opportunities, managing investments, appraisals, and more.
If you’d like to get more insights, then registering to an event discussing PropTech and adjacent technologies is definitely a great idea. Space Plus, one the leading event organisers in the property space, offer a range of programs such as the one upcoming in November where a whole host of progressive and alternative property leaders will be talking.
