The given clear momentum of proptech according to the Global PropTech Confidence Index, indicates it won’t be too bold to bet on the sector. Rather the question is who will capture the digital business of real estate?
We already know that in the digital age technology is transforming real estate. But what’s critical to thrive, is it either the openness to innovation or the power of experience in real estate or even is it a combination? Can today’s market leaders beat disruptive competitors at their own game?
Capture the Digital Business of Real Estate
The world’s largest asset class is very slow in adopting new innovations as we know. The same is true when it comes to culture. May be the factor which is more important because it’s the foundation of innovation.
This lack of openness and the sheer size of the asset class with it’s huge potential of disruption makes the industry vulnerable. In other words a very valuable target for outsiders as we can see in other major industries. Industries which are more complex than the property industry is.
Of course the new ecosystem of cretech isn’t perfectly working. Many startups won’t survive not last due to a lack of expertise in real estate. Despite a wall of money, investors will be selective. The increasing competition for capital will consolidate the sector and some investors will lose money.
But it’s the disruption not the disruptor which transforms an industry as mentioned in the award winning book ‘Digital Vortex’, from the Global Center for Digital Business Transformation.
The point is the ability of awareness and the understanding of the new world of technology in real estate particular for the incumbents.
So how to take advantage and capture the digital business of real estate?
Let’s talk big picture on the current and future state of the CREtech landscape. CREtech is a nascent industry, but much of the tech revolution’s trajectory in commercial real estate has already mirrored the massive and rapid technological changes seen across other industries: finance, healthcare, and insurance, to name a few.