A new study from Juniper Research has found that revenues generated for vendors by Proptech rental platforms will reach $6.5 billion by 2023, up from an estimated $290 million in 2018. Proptech refers to the use of technology to digitally transform the property industry.

According to the new research, online rental platforms such as Flip and Avail are rapidly gaining traction in the rental market, by enabling landlords and tenants alike to deal with high charges and complicated agent processes. These solutions, by incorporating a superior online listing, legal and payment service, will propel the total number of Proptech-facilitated home rentals to 22 million by 2023, up from 3.6 million in 2018. This will force real estate agents to rapidly adopt online-focused business models to remain relevant.

The research found that online conveyancing platforms, which take complicated legal processes and streamline them using simple online platforms, will deliver annual consumer savings of $1.5 billion by 2023, as well as eliminating a large cause of frustration.

Research author Nick Maynard explained: “The rise of online conveyancing platforms is a wake-up call to the wider conveyancing industry, which must work to reduce costs and customer frustration. If it fails to do this, it will become increasingly bypassed by newer, more technically adept players.”

The research also found that commercial property is being heavily disrupted by Proptech, with office-sharing vendors such as WeWork growing rapidly. This will lead to total annual platform revenues for shared office space companies of over $13 billion by 2023. Platform vendors in this space are, however, taking large risks, by securing long-term leases in expensive commercial markets. Juniper recommends that vendors minimise lease length to reduce future risks in a highly cyclical space, such as economic uncertainty or weak demand.