Data & Information Product Director at RICS, Dan Hughes, explains how technology is driving the property sector from a product industry to a service.
What are the new paradigms for the Real Estate industry?
As with many sectors technology has been widely used across the property sector for many years, however it is now coming to a point that it is starting to drive change. From investment in startups, new strategies by major property firms or entry to the market by established major technology firms, technology is becoming increasingly important as a driver for the market.
Who are the new players in the Real Estate ecosystem?
One of the key global developments in the last few years is that the barriers to entry for technology firms have plummeted. There are a number of reasons for this, but increased connectivity and reducing technology costs are two of the key drivers. This means that it is becoming increasingly viable for new entrants into the market to develop a rapid and robust solution to solve very small bits of the whole building life cycle. This has meant that there are a wide number of people trying to solve established problems with technology, many not from the traditional property sector. This in turn then brings other new entrants for example PropTech investors.
What are new forms of business emerging?
‘Disruption’ is a word that is widely used, but I am not convinced that this is either helpful or happening yet. What is happening is that whilst the form of business is staying similar, it is incrementally being done differently. If there was one overall trend that is enabled by technology is that the property sector is having to focus increasingly on being a service, rather than product industry.
Don’t miss Dan as an expert panelist and jury member during the MIPIM Start-up Competition final in Cannes on March 15th, at 15.00
What does professionalism mean to your clients? Check out the this exclusive MIPIM 2017 session sponsored by RICS with Speaker: Sean Tompkins, Chief Executive, RICS