How the UK Property Market’s Wealth of Data is Driving the Rapid Developments in PropTech

Rob Simmonds
Rob Simmonds

Property technology, or PropTech, is a key emerging trend within the real estate industry, with both investment in property software development and adoption of software solutions on the rise in the United Kingdom. Much has been made of the drivers for this adoption, such as the success of technology solutions in the transport, tourism and fast food industries, but one driver that is playing a vital role is the market’s abundance of data.

Nevertheless, the importance of data is something that has been overlooked by analysts. In this blog post, we take a closer look at the influence of data on PropTech development and the specific data that has encouraged adoption.

The Influence of Big Data

Big data has been one of the major technological disruptions across almost all industries over the past decade, and while the real estate industry has been slower to react to it than many other sectors, a growing number of companies are starting to realise its importance to the way they do business. This has been one of the single most important drivers behind the aforementioned rise in PropTech adoption in the United Kingdom.

In general, the property market generates a wealth of data, from a variety of sources. This may include, for instance, data about the market itself, house prices, rent rates and legislative changes. It might also consist of information about home owners, tenants and agents. Within this, analysis can be carried out, patterns can be observed, and conclusions can be drawn about trends, demographic shifts and more.

“The data that the real estate sector generates from its assets, tenants and clients offer the industry tremendously valuable potential for further development.” explains Alexander Betz, Head of the Digitalisation at PATRIZIA.

For this reason, the kind of property management app UK real estate businesses are likely to be interested in is the kind that will allow this data to be obtained, accessed and organised easily and efficiently. These demands are crucial in pushing through advances in PropTech and are one of the reasons why Engage’s various software portals prioritise communication, allow for customer feedback, and provide access to real-time information.

Wider Industry Changes

The UK property market also has access to additional data which has contributed to the rapid rise in PropTech adoption. For example, there is the information presented through a report by the British Property Federation, showing that there are now more buy-to-rent homes that are either completed, under construction or being planned outside of London than there are in the capital – the first time that has been the case.

Essentially, this means that the industry itself and the demographics are shifting from the established norm. For landlords, lettings agencies, property developers and others involved in the industry, analysis needs to be carried out, in order to cater for these changes, and this has made many individuals and businesses more open to the idea of using property software and other PropTech solutions to assist with this challenge.

Furthermore, the UK property market has access to wider data about customers and what they respond to. In particular, there is ample evidence pointing to customer experience being the main battleground in the digital age, as opposed to product or price. In fact, many customers, across a whole range of different industries, admit they would gladly pay more for the exact same product if it guaranteed them a better experience along the way.

What this means is that any property management app UK landlords or real estate agents adopt needs to be able to deliver in terms of improving the experience for tenants or clients. As an example, the Engage resident portal provides a number of self-service options, allowing customers to swiftly access documents, make payments and check statements, while the property management team can use the platform to share news and information.

The Final Word

Ultimately, the UK property market is increasingly data-driven, and this data can be used to identify industry and demographic trends, and to deliver a greater customer experience. Nevertheless, for those in the industry to actually take advantage of this data, they need to be able to quickly and easily gather it, access it, organise it and then analyse it. This has helped to drive the rise of PropTech, with real estate businesses seeing it as a means of not only collecting data, but also acting upon the insights they eventually gain through analysing that same data.

 

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