REAL estate lags behind most asset classes in the digitisation and adoption of technology. The industry is made up of numerous intermediaries – transactions tend to be fiercely negotiated and not standardised – data related to transactions, financing and operations is typically incomplete and lacking transparency. Commercial real estate as a sector is therefore primed for transformative change that can bring about significant efficiencies and competitive advantage.
COVID-19 has only served to magnify this need. According to a recent study by the Australian Property Council, Australian property companies have been embracing proptech at an accelerating pace. Metaprop, a leading proptech VC firm predicts that innovations of this type will add more than $USD205 billion in value to the industry worldwide in the next five years.
Today, various market players – from property owners, through managers, to designers – are supporting start-ups, investing in innovations, and testing new proptech, much of this driven by the need to make buildings more sustainable, healthy, efficient and attractive. Proptech is increasingly seen as a competitive differentiator and a basic requirement for success in the commercial real estate sector.
But with so many new and maturing technologies to choose from, how can one cut through the noise and determine which proptech solutions are right for their organisation? The rapid increase in the number of proptechs, the competition between them and the breadth of their involvement in the sector make it difficult for real estate owners and managers to decide which to invest in and roll-out. Many proptechs have excellent tech but offer solutions to problems that aren’t a big priority. Others lack the ability to communicate their value proposition and can’t get in front of the right people. The end result being lost opportunity for all players across the value chain.
The commercial real estate industry is at a unique inflection point. Success will be largely dependent on finding the right proptech companies and collaborating with them to develop their tools and optimise their impact. Like any emerging space, proptech will have its winners and losers – but what is clear is that real estate investors and owners need to get more actively involved to help shape the best outcome.
The Proptech NEXT Summit, taking place from 8-9 December will bring over 200 real estate owners, managers, investors and proptechs together to discuss how tech is transforming real estate, network and form partnerships. It will connect technology decision makers with proptech companies offering solutions that are tried and proven as well as exposing them to some of Australia’s best kept up and coming proptech secrets.
By John Pozoglou
Founder & CEO, FuturePlace