New opportunities have appeared during the COVID-19 pandemic
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Today, we will take a look at PropTech companies that are growing even more due to COVID-19. Due to the increase in non-face-to-face transactions, many companies have entered the PropTech market. In the following article, we will help you discover what changes have occurred in the era of COVID-19.
PropTech Companies in the Spotlight
PropTech is a compound word of “property” and “technology” and refers to an industry that develops various services using information technology (IT). New technology is opening up opportunities for PropTech companies during the COVID-19 crisis.
According to international media (Bloomberg) and the PropTech industry, Zillow Group recorded surprising sales in the third quarter of last year. Zillow is a PropTech company headquartered in Seattle (USA) and is the #1 online real estate platform in the U.S. It provides consumers with a variety of information created through big data and machine learning.
The real estate market is paying attention to the growth of PropTech companies that have emerged while the economy as a whole was in crisis due to COVID-19. With the explosive growth in housing demand and low interest rates on loans, preference for online real estate platforms has risen. In the midst of this, the market share of PropTech companies such as Zillow has expanded.
Industry experts are also analyzing the impact of generational change. In September, U.S. home sales were at their highest level since 2006. A new market is opening up as millennials, who have risen to the top of the main housing purchase class, pursue reasonable consumption. Their needs now match the services and technologies provided by PropTech companies.
The growth of PropTech companies domestically as well as internationally has been outstanding. OlimPlanet had an opportunity to expand its business area as the non-face-to-face market grew due to COVID-19. For the past 5 years, OlimPlanet has developed and provided a House View Service that uses virtual reality (VR), augmented reality (AR), and mixed reality (MR) technologies to make the tour feel real. They no longer have to build an actual model house, but can make a digital one based on the given design information.
Since COVID-19, construction companies have limited offline operations such as model homes, and have benefited from this new technology. From January of this year to the 10th of September, the number of visitors to the company’s Home View Service increased by 169% compared to pre-COVID-19 numbers.
Recently, exhibition projects beyond the real estate sector have also expanded. The number of projects that have introduced realistic content was 57 as of October this year, up 73% from just 33 last year. Accordingly, PropTech companies are planning to expand their businesses to various fields such as product distribution, shopping, and education.