Real estate is undergoing transformation and the major players in the industry are aware of the impact it has on selective levels and the new arenas it opens up for much integration.
FREMONT, CA: The tides of changes, especially from digital technologies to platform models, have ruptured banking, manufacturing, and insurance along with other sectors. But industries like real estate has a minimal impact so far and is not regarded as an exceptionally innovative sector, with comparatively less research and development, and labor productivity. The scale of real estate markets portrays a grave potential for change, and the impacts the transformation could have given the right factors, are immense.
Factors that ignite the transformation in the real estate sector are identified to be on the horizon. Almost 52 percent of "Hire, Rent, and Real Estate Services" have adopted digital technologies, even though it is sporadic in the application, a concrete 22 percentage of the industry is predicted to be affected by the digital disruption. At all levels of the real estate industry, not more than 8 percent of the CEOs believe that the current business model will survive a large-scale digital disruption.
One notable change, which was experienced first by the computers and then by smartphones from the last twenty years, is the enduring shift from hardware to software as the principal driver of revenue. The weight of the connected era contributes to increased differentiation and additional value being generated by the software and the digital services it enables in the future.
The real estate players are more aware than ever as they realize that organizational and personnel changes are as important as the technologies that unlock new doors for development. But, with the emergence of proptech, the results are much better than expected and harder to be ignored. In the most pragmatic sense, proptech relates to those technologies that simplify the process of buying, selling, or managing a property. This definition also provides scope to be expanded to allow reference to innovative technologies, procedures, standards, and use cases that are transforming the real estate scene.
Smart houses are the most obvious examples of proptech, but with the introduction of new processes, standards, and conventional approaches will have a significant impact on the development process, investment decisions, managerial aspects, and the usage of various types of real estate. As the rate of change accelerates, fantastical views of the future materialize into reality, the real estate industry will change, regardless of the fact whether the incumbents are ready or not.
See Also: Top Proptech Solution Companies