The real estate sector is experiencing a transformative shift, driven by technological advancements collectively known as “proptech” (property technology). These innovations are reshaping how we live and work, focusing on sustainability, data-driven decision-making, and adaptability to new lifestyle preferences.
Insights from industry experts Philip Major, investor associate at R-LABS, and Lynette Keyowski, managing partner at NAR REACH Canada, provide insight into the evolving landscape of proptech and its impact on residential and commercial real estate.
Adapting to new lifestyle preferences
Post-pandemic, the rise of remote work has significantly altered residential and commercial real estate demands. Major notes, “Remote work can help address density and affordability issues in urban areas. Winners in the commercial sector will be those who can optimize unused spaces.” He mentions LOFT, a company offering flexible office spaces in cities, as an example of adapting to these changes without relying solely on central business districts.
Converting commercial spaces to residential areas, while popular, poses logistical challenges. Major suggests a trend towards luxury rentals and condos incorporating amenities like daycare centers and restaurants directly into the building to cater to urban dwellers’ evolving preferences.
Sustainability and energy efficiency
The push for sustainability is gaining prominence in real estate, especially in commercial properties. Major mentions that LEED certification is a growing trend driven by tenant demand. Tenants with strong ESG initiatives prefer sustainable buildings, influencing property values and development costs.
Companies like Measurable, tracking carbon emissions, are becoming essential. Developers now consider the entire building lifecycle, including end-of-life recycling options, to enhance project sustainability.
Leveraging data and AI
Data-driven decision-making is revolutionizing real estate investment and management. Keyowski notes a significant trend in the 2025 REACH Canada cohort: “AI is used to cut costs, automate tasks, and enhance backend processes.” This trend spans the industry, supporting personalized real estate services, from property valuations to virtual tours.
Keyowski mentions the “Netflixization” of real estate, using data to tailor user experiences. This trend makes homebuying more interactive and personalized, improving consumer engagement with listings and agents.
Major points out how AI is slowly being adopted in commercial real estate, with companies like Hatch acquiring AI-driven platforms to help developers understand complex data points for optimizing property investments.
Addressing housing affordability
Affordability remains a critical issue in the real estate market, and alternative financing options are emerging as a solution. Keyowski highlights the rise of ‘alternative financing’ options aiming to keep borrowing and administrative costs low.
These tech-enabled solutions offer diverse options like Halal mortgages, creative down payment financing, and leaseback home purchases.
Under-the-radar innovations
Despite technological advancements, some tools are underutilized by the public. Keyowski mentions backend tools like online MLS systems and showing suites that facilitate seamless real estate transactions.
Innovative solutions like digital mortgage platforms and offer transparency tools have the potential to streamline the homebuying process, although industry adoption is slow.
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