Currently, in the technological world order, each sector is going through the challenge where the paradigm shift is moving from an era of industrial past to a digital future. In this same way, the property and real-estate industry has not been left out either. There has been a relevant transformation with the advent of the fourth industrial revolution. It has continually redefined the relationship between digital environments.
If you think about it, there are new and modern technologies along with emerging businesses and alternative solutions entering the mainstream in a short time. But sometimes, when the flow of emerging technologies becomes vast, it becomes unclear for businesses to exactly analyze exactly what lasting impact these changes will have on their current portfolio.
Image Courtesy: vts.com
The current scenario
Industry leaders and real estate decision-makers have noticed the ginormous steps forward which the other industries have made with the adoption of technology. They include FinTech in financial services and are looking at how they might fare in the coming time. The property firms are also being forced to respond to the disruption facing occupiers in order to stay relevant to their customers.
Furthermore, as in other industries, fast-growing businesses are emerging with new solutions to industry pain-points and are coming up with more effective and efficient ways of engaging with customers or transacting. Property firms now find themselves having to keep up with new competitors, as well as with existing peers.
Real estate demand is moving more quickly than at any other point in my career. Landlords are having to delve into the operations of the business in a way that’s more akin to hotels and in a way that we’ve never had to do before.
How do we define PropTech?
PropTech: The term for property and technology has many guises globally, with words such as PropTech, RealTech, CREtech, ConTech and Real EsTech often used interchangeably and with multiple meanings. For the purposes of this survey and report, we have used PropTech to cover all technological and digital innovations relating to the property.
Collaborate to achieve more
If we take into account a majority of real estate businesses, you will find that not all of them are naturally responsive to the fast pace of digital innovation. And the key factor behind this is that before this time, real estate had little or nothing to do with it. Equally, while many sectors have proven themselves particularly vulnerable to digital transformation – retail and financial services, for instance – property is, by its nature, less open to disruption. Despite relatively slow progress in adopting PropTech, we have seen a noticeable increase in engagement with technological innovation across the industry. We have been through a period of acceptance, in the past 12 to 18 months (see chart) – and this is an essential precursor to wider adoption.
Speaking the same language
Increasingly, there are signs that those within the technology world have increased their understanding of the real estate industry. They are starting to explain their solutions in language that real estate firms understand – and are articulating the ‘value-add’ in more accessible ways. Bridging the gap between real estate and technology experts – an outcome that property leaders seem overwhelmingly keen on – PropTech firms are starting to develop solutions to problems that many real estate firms were looking forward to solving.
How emerging technologies are fueling the real estate industry
Big data helps for accurate appraisals and precise assessment of properties. Big data also provides an opportunity to target a specific audience through personalized ads and recommendations.
Shift to the cloud
With anywhere, anytime, any-device access to data and apps, those involved in real estate are now able to improve their overall productivity, including streamlining the negotiation and closing of more deals, faster.
Real estate blockchain
By enabling blockchain in real estate, the property agents can improve the property search process and expedite pre-lease due diligence. It also enables transparent and relatively cheaper property title management along with smarter decision making and better cash-flow management.
AR & VR
Real estate property manager and owners can enhance their users’ experience on the website where a virtual presence of the property highlights Points of Interest allowing potential buyers a better understanding of the property.
As the real estate sector is growing, the long war for talent will get more intense. Local knowledge is becoming more sought after than it is now. In the current scenario, relatively few people have the kind of expert knowledge required. The ecosystem of real estate software solutions available in the market is vast and there cannot be a better time to dive in and seep all the knowledge one can.