Bright Spots in Proptech

Real estate technology has faced some growing pains of late, but these challenges also highlight the sector’s potential for continued evolution and innovation. While the struggles of a few high-profile startups have sparked questions, many sub-categories of real estate tech remain strong, and are helping reshape the industry in meaningful ways. These include:

Resident Self-service

• What it is: Tech that empowers residents. Self-service technologies eliminate friction points associated with leasing, WiFi setup, utility setup, etc., by bypassing middlemen and putting residents in the driver’s seat.  
• Why it’s hot: Self-service helps both owners and residents, especially in a post-COVID world where flexibility is king.
• Case Study: Tour24 allows owners to create a curated self-guided tour experience. This lets residents conduct tours at their convenience – including after hours and on weekends and holidays.
  • It gives owners insights into how tours are performing, enhancing the leasing process while centralizing operations.
  • Tour24’s software revenue has grown 75% YoY.

Sustainability

• What it is: Technology that helps monitor and optimize building resource efficiency, which can often lower electricity, heating, water, and waste bills.
• Why it’s hot: Operators are pursuing efficiencies in every aspect of their operations. That extends to resource efficiency. Many ESG technologies present major cost-saving opportunities, yielding a strong ROI.
• Case Study: Parity is a remote HVAC optimization and service company for multifamily and hospitality. It manages the daily performance of HVAC systems by automatically optimizing control adjustments in real-time.
  • By limiting energy waste across properties, Parity improves building efficiency and guarantees savings back to owners with payback as little as 2 years.
  • Parity successfully closed a $20M Series B this past July to support market expansion efforts.

Artificial Intelligence

• What it is: Tech that utilizes generative AI and machine learning across a wide range of different applications
• Why it’s hot: The AI trend is here to stay, and these tools are poised to make a tremendous impact on operations — from resident communications to market analysis to back-office work.
• Case Study: PredictAP, a machine-learning-enabled invoice ingestion and coding solution for real estate accounts payable, leverages AI and historical invoice data to code new invoices more accurately and efficiently.
  • The platform reduces the time needed to process each invoice by 80-90%.
  • PredictAP has grown recognized revenue 250% YoY.