PropTech has had about $70bn lend into it to-date. But what does it mean to you? In fact, PropTech has become a catchall phrase, and definitions will vary consistent with the environment you're employed in and your exposure to the market. Globally, there are over 7000+ PropTech firms (see Figure 1). Within the last 18 months, within the united kingdom commercial land space, we've seen PropTech evolve and mature significantly. Even so, we’re still within the nascent stages of industry transformation. There’s much work to be done, not only by technology and software vendors but primarily for the normal industry companies; for this is often where the battleground for change will ultimately be fought. Technology is evolving much faster than real estate’s appetite for innovation.
Real Estate has long proven itself to be an impenetrable fortress. If the newest FuturePropTech, CogX, and RealComm events are anything to travel by, the queue of technology companies poised to breach is steadily increasing. Just outside the walls, tech giants are skillfully removing the hinges from the door. Don’t believe me? Take a glance at:
• Google’s recent $13bn investment in data centers and offices across the US and therefore the recent $1bn to create 20,000 Bay Area homes
• Sidewalk Labs’ new smart city dream in Toronto
• Amazon's HQ2, Alexa Smart Homes division and its ever-progressing 288m sqft of offices, retail stores, warehouses, and data centers
• Microsoft's various IoT products, Azure Digital Twin service, $500m pledge to fight to house economically
• IBM’s Facilities Management products and IoT services
• Airbnb’s enter construction with Samara
• WeWork’s ‘Powered by We’ philosophy and its impending billion-dollar IPO (Successful infiltrator who has been performing on the locks from the inside)
Despite the excitement of high-profile activity, there's still a pervasive wariness and distrust about the utilization of additional technology. a number of the larger players are embracing it in theory, but their hands are tied in accessing the complete value of such technologies until their own internal culture has been digitally transformed. it's a huge undertaking.
The connecting data tissue and business IP has largely existed within the memory of employees and an array of fragmented spreadsheets. Within the property industry, R&D spend vs revenue is ~0.08percent and within construction, it's ~1percent. Albeit these numbers were out by 50percent, these figures on R&D inland are shocking as compared to other industry norms.