How proptechs in Latin America are changing the real estate game

Contxto – Real estate is changing as we know it—and for the better. Many of the ways in which buying, selling, or leasing a piece of property is becoming a simplified experience thanks to a variety of factors, many of which are addressed by proptechs in Latin America.

Money problems? No problem, say proptechs

For one, the types of customers in the market have grown more diverse in needs, habits, and budgets. 

Mexico-based Aptoclick for example has millennials and low-income individuals in mind. Through its marketplace, the startup showcases properties that have been foreclosed and thus can be bought at a more accessible price. To guide buyers through the process the startup also has a network of brokers. 

In addition, if the buyer has credit-related problems, the startup works with the user to find the mortgage loan that fits their needs. Aptoclick also plans to enable a completely online process for requesting a mortgage.

• Related article: Real estate in Mexico after Covid-19, how proptech will revolutionize it

Meanwhile, Brazilian Kzas uses artificial intelligence (AI) technology to match a potential buyer with the property that matches their needs. It also launched Kzas Krédito, an algorithm that based on the buyer’s income, age, and other profile-related factors, helps them find the financing option that suits them best.

Tech to the rescue

The advent of the internet and our blessed smartphones is also changing the real estate game in terms of tech. This need has been further driven by the ongoing coronavirus pandemic. A clear example of this is the use of remote tours to showcase a property to a potential buyer. 

Brazilian Loft is embracing digital deeds to make the experience of buy or selling a home completely online and legit. Digitizing agreements between parties is also embraced by other startups that work with rental properties.

If estimating the price of your property is the problem, Argentine Mudafy created an algorithm that gives owners an estimate of its value.

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Proptechs are bringing about change and putting traditional players on their toes. However, in many Latam countries, there is still one major obstacle even tech can’t resolve: bloated bureaucracy. 

Oftentimes, when buying or selling a home, the process of registering it before a notary is a long and expensive process. If a startup were to emerge and somehow streamline that, well it may not be rocket science… but it would definitely be disruptive.

Related articles: Tech and startups from Mexico!

-ML