PropTech is defined as the application of new technologies to the real estate sector.
It encompasses a wide range of technological solutions and innovations designed to improve, optimise and modernise a number of real estate factors, including the residential, commercial and industrial sectors.
PropTech, by definition, is about making the entire real estate lifecycle – from buying to selling, from managing to renting – more transparent, efficient and accessible.
In general, articles make the link between PropTech and real estate crowdfunding through the use of online fundraising platforms.
However, SIPA Crowd Immo is breaking new ground in the property market through the proliferation of its unique and profitable concept: participative shareholding.
In this article, we’d like to explain how these two ground-breaking innovations can be linked.
Data analysis
PropTech can help a real estate crowdfunding company to collect, analyse and learn from real estate market data.
This includes analysing the property market by providing data on:
- Market trends, such as increasing demand for housing, the rise of shared workspaces, or buyer and tenant preferences.
- Property prices : PropTech solutions can analyse property prices in specific neighbourhoods and provide data on inherent fluctuations over time. They can, for example, show how house prices have risen or fallen in recent years.
- Rental demand: this can be analysed in a given region by identifying the most sought-after types of property (flats, detached houses, offices, etc.) and providing information on occupancy rates and average rental periods.
- Occupancy rates: PropTech in definition can help investors and landlords to assess the performance of their properties and make more accurate and secure decisions about the management of their assets.
- Comparative analysis: Investors can more easily compare the performance of different property markets and appreciate the difference in rental yields between different cities.
- Growth projections: Using historical data and predictive analysis models, PropTech can generate growth projections for the property market. It can estimate, for example, the expected price growth for houses or residential buildings in a city over the next five years.
- Competitive analysis: Real estate players can carry out their competitive intelligence more easily by obtaining information on new real estate projects underway, but also on competitive rental rates.
- Regulatory compliance analysis: PropTech can analyse local and national regulations that have an impact on property investments, such as short-term tenancy laws or environmental regulations.
Property investment management
PropTech is revolutionising the way companies manage their property investments.
Investment management solutions enable real-time monitoring of the performance of each project. For example, SwissProp Tech is a Swiss organisation that offers data analysis and business intelligence solutions for real estate investors.
Cash flows are analysed in detail to facilitate decision-making.
Managers can analyse the profitability of each investment using customisable dashboards and adjust their strategy accordingly.
Results: financial resources are better used and returns are more optimised.
Assessing profitability
PropTech’s valuation tools offer greater visibility of the profitability of potential returns on property finance offers.
These tools incorporate financial models such as :
- acquisition costs,
- rental rates,
- occupancy rates,
- interest rates.
These analyses enable the viability of a property project to be accurately determined. As a result, investors can identify the most profitable opportunities and minimise their investment risk.
Automating administrative processes
Automation can be a major asset for employee share ownership because it simplifies tedious tasks such as :
- generating legal documents,
- contracts,
- partnership agreements.
Each transaction is completed more quickly. What’s more, the collection and verification of financial information can be automated. All in all, it saves time for real estate professionals.
Blockchain and tokenisation
Let’s imagine the future of participative real estate shareholding with blockchain and tokenisation.
PropTech in definition can help companies develop technological solutions for managing property asset tokens.
This would guarantee full traceability of transactions and enhance security.
In addition, regulatory compliance would be simplified thanks to smart contracts that would automate compliance processes.
Tokenisation also opens up the possibility of allowing investors to trade shares in properties, but that’s another topic altogether…
Do you have any questions about our offerings? Would you like us to help you invest safely and sustainably in Switzerland? Contact one of our customer advisers now to help you make the right choice and invest with confidence.
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