Compared to fintech, proptech started its journey later, but today it already offers more and more solutions for real estate players—whether in residential or commercial properties. Numerous startups have appeared on the market, and there are countless innovations addressing a wide range of problems. In Hungary, the industry has only recently started to become truly significant, a trend accelerated by the pandemic, the energy crisis, and the growing commitment to sustainability.
Previously, the real estate sector was among the least digitalized industries, largely because between 2015 and 2020 the sector was highly successful, so players were not forced to manage resources efficiently. Now, however, times are changing, which is also driving digitalization. We are living in a historic era where we have experienced a global pandemic, now face a war, and additionally a global energy crisis—particularly in Europe.
Proptechzoom conducted a comprehensive survey among real estate stakeholders, identifying five main reasons for the lag in real estate digitalization:
Transparency is a sensitive issue, and motivations are unclear.
Market success slowed down these processes, as there was no perceived need.
The uniqueness and project-based nature of real estate, since it is not mass production—repetitive processes are much easier and more cost-effective to digitalize.
The rigidity of the market, for two reasons: properties take years to build and cannot be changed mid-process, and leases are signed for 3–5 years, so the market does not follow every shift immediately.
The investor-driven nature of the market: everything is calculated on ROI, while innovation rarely pays off in the short term.
Today, proptech (property + technology) can solve many real estate challenges, and the market is almost overwhelmed with options. It is difficult to find the best methods for consumers, and technologies must also be aligned to ensure compatibility. The pandemic amplified the spread of new technologies, from planning (e.g., BIM) to touchless solutions and occupancy data, and now artificial intelligence (AI) is taking center stage.
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