As you may have read in the Real Estate Crowdfunding 101, 102, and 103 articles, crowdfunding is a relatively new phenomenon that has changed traditional methods of raising capital for real estate investments. However, crowdfunding is just one piece of the larger picture: namely, that technological innovation is inherently disruptive. How has this disruption affected the world of real estate elsewhere?
Historically, the real estate industry—particularly the commercial side—has been slow to adapt to rapid increases in technological innovation. While other industries have welcomed innovation with open arms, real estate has not been so quick. However, the efficiency and success in other industries have inspired many property technology companies (dubbed “proptech”) to quickly rise in the real estate world. Although real estate has not caught up to other sectors quite yet, there has been a significant change in a relatively short amount of time. This article will discuss some of the emerging trends in the real estate industry spurred by technological innovation.