Challenges Faced in the Proptech Sector
PropTech is not a new phenomenon, but it is in the eyes of the market it serves. It has only been recently that substantial amounts of funds have been invested into PropTech. It is a subsidiary that has quite the oppositions even though tech solutions for Real Estate problems are the unspoken desires of stakeholders.
The following are some of the challenges faced in the proptech industry
Lack of Adoption
The Real Estate industry is populated by owners and investors above 30 years old, an age group that has a poor reception to technological innovation and adoption. And though this reception is on the verge of getting better, this age group require more energy to convince to incline towards technology. Even after they have accepted the tech solution, they most often times do not adopt it and prefer to do things the “old way”.
Insufficient funding at start up stage
The PropTech industry has only in the past few years has been able to attract a significant number of high level investment. The majority of the available market segments are not yet reacting fully to how much this new wave of companies and products will affect them. Which means engagement rates, adoption and willingness to pay for products are strong oppositions to proptech startups.
This is a challenging situation to be in, as investment into startup proptech companies might be harder to acquire from investors who are after metrics involving themselves into such companies.
This is true with any startup, the unknowable future of a product or company. People, and companies will be slow to react to new tech products and innovations available to them in Real Estate as the adoption of such is really only just starting. Many newer innovations have an aura of uncertainty around their usefulness, survivability and stickiness among their desired customers. Even early adopters of such products approach them carefully, treading neatly before allowing them to integrate entirely into their workflows or life.
Resistance to Change in the Industry
All in all, each of these points boils down to a common theme, there is a resistance to change in the industry as a whole and even those who’re putting lots of money into it. Real Estate is one of the last strongholds of largely untouched ground when it comes to tech, and people are noticing, making changes but not until they see the opportunities are ripe.
Last updated 1 year ago
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