It can’t be repeated often enough that technology is changing the game in real estate. Proptechs are disrupting the status quo and those who aren’t already thinking about what users are going to need in the future will get left behind. Property Forum presents 5 key statements from the first day of MIPIM PropTech Europe in Paris.
- Artificial intelligence will change the way we use technology
The number of devices connected to the internet is going to skyrocket within the next few years. It can be difficult to learn how to use so much technology, but with the help of AI, technology is going to become so effortless and integrated to our life, we won't even notice it. We will be able to have all the benefits of being hyperconnected without actually feeling connected ourselves. AI will be able to perform any logical task, but at this point it seems that AI will never be able to have emotional intelligence, so that is the area where human input will be the most valuable.
- We are still at the beginning of the life cycle of proptech
Even though there are already tons of proptech companies out there, we are still at the infancy of the cycle. The amount of capital invested in proptech is growing rapidly and will likely continue to do so. Luckily, real estate companies are more open to partnering with proptechs than banks were when fintech appeared. Cooperating with real estate start-ups can help older companies reinvent themselves. Also, it can help them keep up with the rhythm since corporates can't move as fast as start-ups. Unsurprisingly, real estate experts expect more M&A and more partnerships in the future.
- But we're in the advanced phase of the property cycle
It is time for real estate companies to prepare for a potential downturn. Capital will flow to those with an edge. Those will be successful who can find the right balance between innovation and skills.
- Those who don't make a move now will get left behind
It might be a smart idea for large companies to invest in their potential disruptors. For example, proptechs can help large advisory firms understand what clients will need in the future. Based on this, it is possible that some of the largest consultancy firms might become holdings (of smaller companies offering different solutions) in the future. Let’s not forget that proptechs are usually disrupting processes, not entire professions.
- The whole industry must become digital
It is not enough for single companies to digitise, the whole real estate industry needs to become digital. Every single company needs to allocate resources to create something that users will need in 10 years. Unfortunately, based on PwC’s global survey, real estate CEOs are not concerned enough about the pace of technology and they are less willing to spend money on technological advancement.