There is an urgent need for sustainable solutions to slow down climate change and develop a better future. Wondering why the urgency? Already, buildings account for 39% of worldwide energy-related carbon emissions: 28% come from operating emissions, which are caused by the energy required to heat, cool, and power buildings, and the remaining 11% come from construction and materials.
Well, the solution is already here - the PropTech sector is leading the way in the global real estate industry. Adapting to this cutting-edge yet sustainable technology, can help reduce a massive amount of challenges commercial real estate face on a daily basis.
Consider this situation - the need for energy is growing as living standards improve. Due to limited energy resources, this results in power outages. Here, you can maximise your energy utilisation with smart lights and thermostats. This is one smart solution powered by proptech.
Follow this article to explore how data-driven insights and cutting-edge technologies of Proptech provides better sustainability solutions -
The Sustainability Principles in Real Estate
Before you jump into finding smart solutions, you must be clear about what’s ideal for real estate. Yes, even though proptech is a futuristic idea but promises sustainability. You must also focus on the preliminary idea of ‘less resources & more saving’.
That’s why before investing into any cutting-edge solutions, let’s get a clarity on the principles -
By integrating ESG principles into its foundation, sustainable real estate goes beyond conventional construction methods. This change is demonstrated by the 2022 Global ESG Benchmark for Real Assets (GRESB) study.
The study notes that more than a thousand real estate firms and funds are currently actively participating in sustainability evaluations.
Imagine using these insights to build stronger relationships with communities, investors, and tenants that share your dedication to sustainability, in addition to increasing asset value.
The following key concepts constitute sustainable real estate:
The primary sustainability concerns that commercial real estate faces
In today's economic environment, managing a CRE portfolio is undoubtedly difficult due to factors like growing global energy prices, investor-led ESG standards, and a post-pandemic shift in building utilisation. In order to maximise operational efficiency, minimise environmental impact, improve tenancy experience, and deliver value for money, businesses are being pushed to do more with less.
Proptech proves essential in this situation because it provides data-driven energy efficiency solutions, such as retrofits, that reduce costs and increase a property's overall worth. By connecting trash generators with recycling facilities, such technology can maximize waste collection and encourage the business to adopt the concepts of the circular economy.
In summary, proptech is an essential ally in your quest for sustainable real estate development, whether building new or revitalising old structures. It's exciting to think that by adopting these technologies, you're not just building structures but also fostering ecosystems where companies coexist peacefully with the environment.
Now, let’s find out what Proptech has to offer for all your challenges in bringing sustainability…
6 Role Proptech Plays to Offer Real Estate Sustainability Solutions
Cutting consumption of energy
One of the primary areas where PropTech sustainability is significant is energy use. For example, smart home technology allows homeowners to monitor and control their energy usage by automating home tasks like temperature management and lighting.
Ownership of such gadgets can help homeowners lower their carbon impact.
Simplifying the Management of Resources
Proptech software offers innovative approaches to real estate resource optimisation. A smart building management system, for example, can be used by managers and property owners to monitor and regulate the quality of the air, water, and waste. The environmental impact is lessened as a result, making it one of the most important examples of sustainable real estate development.
Empowering Intelligent Urban Design
Real Estate in the Ecological Sector Proptech software can help policymakers and urban planners create smart, sustainable cities. Through data analysis and artificial intelligence, these solutions give them valuable insights into urban dynamics, population density, and the needs for smart infrastructure. This thorough information enables planners to make critical decisions about the allocation of resources, the use of land, and the transportation network.
Advancement in accountability and transparency
Two key elements of real estate sustainability trends—accountability and transparency—are being propelled by proptech.
Businesses are looking into how blockchain technology may be used in the sector to provide secure and impenetrable real estate transactions. They are also investing in systems that give comprehensive data on energy performance metrics and sustainability so that stakeholders can support environmental goals and make decisions that can be justified.
Eco-Friendly Real estate Service
An effective proptech software connects to the building's intelligent systems by gathering and analysing building data, as well as the condition of equipment and processes.
The program then transfers the data to a centrally maintained tool where all of the actions and performances are recorded.
A further example of this idea in the sustainable growth of real estate is the purchase of proactive maintenance software, which makes use of scheduled and preventative maintenance data to ensure optimal asset performance.
Monitoring and Controlling Air Quality and Water Use
Creating a proptech solution with multifunctional Internet of Things sensors is one of the most crucial elements of sustainable real estate operations. Apart from quantifying water usage, it also helps to track temperature, CO2 concentrations, humidity, human activity, and barometric pressure—all of which are essential for effective water management.
A variety of data sources are combined to provide building managers with real-time notifications when predefined KPIs are not being met.
Now that you know how proptech can bring home smart sustainability, let’s check some of its top tools -
Five Fresh Proptech Startups for Sustainable Solutions
Proptech solutions are already being used by more than half of real estate firms, and by 2032, the market is predicted to be valued at $119.9 billion!
Let’s check who is making this buzz!
Cohesion
Cohesion, a leader in smart building technology worldwide, links and centralises building system data into a single platform using its real estate software. By automating vendor management, building inspections, and maintenance, their facilities management software relieves FM personnel of time-consuming tasks. It unveiled a specially designed generative AI assistant in 2024 to provide CRE managers with real-time data analytics-based advice.
Clockwork Analytics
The fault detection and diagnostics platform from Clockwork examines hundreds of building data points and identifies the ones that have the most effects on building performance. Building managers can improve equipment reliability and optimise energy performance with the aid of its automated analytics.
Fixflo
This proptech business from the UK swiftly rose to the top of the maintenance management software market in the nation. YPP and Dandara Living are two of the top BTR landlords among its clientele. Its software ensures quicker and simpler compliance by automating predictive maintenance and streamlining reactive maintenance.
Briq
This $150 million AI business, ranked by Business Insider as one of the most promising proptech startups in the US, uses AI technology to streamline financial procedures in the building and real estate sector. Through its creative application of AI, Briq simplifies financial and ESG reporting.
Final Thoughts,
Living in the top of a twenty-storeyed apartment can offer you the best view. In fact, such properties are one of the primary beauty needs of most clients. But the real estate business suffers a lot of sustainable challenges that go behind producing such beauty.
But with PropTech automation, you can achieve smart solutions. By transforming the real estate sector with improving sustainability, client satisfaction, and operational efficiency, your estate business can prosper like never before.
Currently, most real estate firms are revolutionising the management, purchasing, and selling of properties through the use of cutting-edge technology like artificial intelligence (AI), the Internet of Things (IoT), and virtual reality.
In fact, commercial building systems are integrated into a single network using IoT, which optimises maintenance and energy consumption. You can easily expect benefits like reduced expenses, better tenant experiences due to improved building functionality, and efficient use of resources.
Hence, no more worries about how to dig in greener solutions. You have proptech to overcome all sustainable challenges. Go Smart!
FAQs
What's the idea of 'sustainability' in real estate?
The environmental and social effects of the real estate sector, as well as the opportunities and risks that follow, are referred to as sustainability.
What is PropTech?
Proptech, often known as property technology, is the nexus of the real estate sector with digital solutions, software, and technology that maximises property management, research, marketing, and sale-purchase.
How does PropTech contribute to sustainability?
PropTech's contribution to sustainability in real estate consists of - Energy-efficient building and transportation innovations that reduce carbon emissions and energy use, hence supporting sustainable development.
