Why Real Estate Brokers Here To Stay And What Proptech Cos Fail To Fathom

Proptech companies tend to oversimplify real estate, reducing it to a mere set of transactions: property listings, buyers, sellers, and a deal. What they miss, however, is the deeply personal nature of real estate

In the past few years, proptech companies have burst onto the scene with bold claims of disrupting the ‘outdated’ real estate industry. They promise transparency, efficiency, and cost reductions, often at the expense of traditional real estate brokers, who are labeled as unnecessary middlemen. The vision? A tech-driven future where algorithms replace human expertise.

Yet, despite all the funding, flashy marketing campaigns, and cutting-edge tools, brokers remain an integral part of the industry. So, if proptech is truly the game-changer it claims to be, why haven't brokers disappeared?

The answer is simple: Proptech doesn't fully understand real estate. And it’s time we acknowledge that.

Real estate is about people, not just transactions

Proptech companies tend to oversimplify real estate, reducing it to a mere set of transactions: property listings, buyers, sellers, and a deal. What they miss, however, is the deeply personal nature of real estate. For most people, buying or selling a property is the biggest financial decision of their lives. It's an emotional, complex process that can’t be streamlined through a digital interface.

Real estate brokers understand this. A property isn’t just an asset; it’s where people create memories and build futures. Brokers don’t just provide market insights—they offer empathy, reassurance, and guidance through an often overwhelming journey. No app or algorithm can replicate the trust and human connection brokers provide.

While proptech can simplify certain parts of the transaction, it cannot replace the personal touch that brokers bring, especially when high stakes and emotions are involved. Brokers offer something far beyond what data points and virtual tours can provide: they understand their clients’ dreams, fears, and unique needs in ways no tech platform ever will.

Real estate is complex, and algorithms have their limits

The allure of proptech lies in its promise of automation. Yes, it can streamline processes like property searches or paperwork, but real estate transactions are anything but simple. Each deal is unique, and every market has its own nuances. Real estate is not like buying something on Amazon—it involves legal, financial, and emotional complexities that tech platforms struggle to address.Brokers, with their deep local knowledge, negotiation skills, and experience in navigating unforeseen challenges, bring value far beyond what an algorithm can offer. They understand how local economies affect property values, how zoning laws impact development, and how to structure deals in unpredictable markets.

While proptech platforms may offer convenience, they often oversimplify the realities of real estate. When complications arise—and they always do—there’s no substitute for human expertise.

Why consumers still choose brokers: The value of experience and personal service

Real estate transactions are not just complex—they can be highly stressful. Consumers want more than a service; they want to work with someone who has weathered the ups and downs of the market, someone who brings experience, personal service, and dedication to the outcome. That’s where brokers shine. They are on the ground, building lasting relationships based on trust, perseverance, and expertise.

In contrast, many proptech companies rely on algorithms and automated processes, offering a faceless customer experience. When challenges arise, who’s there to offer guidance? Consumers don’t want to navigate one of the biggest financial decisions of their lives alone. They want an expert, not an app, especially when things go wrong.

If proptech is the future, why do they keep burning investor money?

If proptech platforms are as revolutionary as they claim, why do many rely on endless rounds of venture capital instead of turning a profit? The truth is, many proptech companies are burning through investor cash without creating sustainable, value-driven businesses. They survive on hype and investor optimism rather than on the actual value they bring to consumers.

Successful companies prove their worth through the value they provide. When proptech companies attack brokers, it’s not a sign of innovation-it’s a sign of insecurity. Instead of answering tough questions about profitability and consumer value, they deflect by vilifying brokers. How are these platforms making money? What hidden fees are consumers paying? Are they truly offering a better alternative?

In many cases, these companies wouldn’t survive without constant infusions of capital, because they haven’t figured out how to deliver lasting value.

Oversimplification is not a solution, it’s a risk

Proptech platforms thrive on selling simplicity: just click here, swipe there, and you’ve bought your dream home. But oversimplifying the real estate process is risky. Real estate is not one-size-fits-all. Each transaction is unique, each market is different, and each client has specific needs. Stripping away the expertise and personalized service that brokers provide leaves consumers to navigate complex legal, financial, and market challenges on their own.

Yes, technology can make certain aspects of the process more efficient, but it cannot replace the tailored advice and hands-on support that brokers provide when things don’t go as planned.

Collaboration, not replacement: The future of real estate.

The future of real estate isn’t about choosing between proptech and brokers—it’s about collaboration. Proptech can enhance efficiency and streamline processes, but it cannot replace the human elements critical to the industry. Brokers are here to stay because they offer something technology cannot: experience, expertise, and personal service. The proptech companies that will thrive in the future are those that recognize this and work alongside brokers rather than trying to replace them.

Time for proptech to prove its worth

At the end of the day, proptech platforms have much to prove. They’ve positioned themselves as the future of real estate, but until they fully understand the complexities of the industry, they won’t replace brokers. The value that brokers provide is irreplaceable—and no amount of marketing or venture capital can change that.

It’s time for proptech companies to focus on delivering real, sustainable value to consumers rather than attacking brokers. The real estate market deserves better than empty promises and inflated rhetoric. It’s time for these platforms to prove they can deliver the trust, expertise, and personal service that consumers need. Real estate is more than just a transaction -it’s a deeply personal journey. And brokers will continue to guide that journey long after the proptech hype fades.

(The author is Chairman, National Association of Realtors India)