Advances in technology continue to transform multiple industries. Every aspect of our world has changed dramatically within a short span of time. Airbnb is bigger than the world’s top five hotel brands combined, but doesn’t own any real estate. Uber is said to be the world’s largest taxi company but doesn’t own any vehicles. Leading communication channels such as Skype and WhatsApp no longer need traditional telephone infrastructure.
Unsurprisingly, there is also a long line of startups promising to bring automation and “uberize” real estate as well. The arrival of WeWork and Airbnb was just the beginning. But what does this mean for the industry — and more importantly, for investors?
The Acceleration Of Technology
As the pace of change accelerates, it can be challenging to keep up with the latest trends and associated industry buzzwords. The emergence of real estate technology is often referred to as “proptech,” and by joining forces with financial technology (fintech), it is already disrupting the world of real estate.
A new era of trust and transparency is making investing in property more accessible to everyone. For many years, investors have accepted that the world of real estate involves navigating time-consuming and laborious processes, not to mention exorbitant transaction fees. However, new players are removing traditional pain points to create a very different future that should be celebrated rather than feared.
Investors now have a variety of options that are making the market more accessible and creating an era of unprecedented opportunity for everyone. My partners and I started our firm, for one example, to help open up access to real estate investment opportunities. Most of us, if we’re lucky, get to invest in one real estate property at a time — the one we live in. We may dream of more, but the minimum buy-in cost is more than we can afford. In the digital era, that’s an antiquated model of real estate investing, and that sense of…