Technology is changing the world of property all over the world. Here are our 10 key takeaways from PropTech360, Israel’s first global real estate and technology summit, hosted in Jerusalem last week.
- The future is technologies that can improve user experience. Proptechs all over the world are finding solutions to problems that users, owners and managers of real estate face in their daily lives.
- The real estate industry has picked up on technology, now we need to think innovatively and react quickly. Construction is the sector in most desperate need of innovation. Architects and planners also need to embrace technology as the cities of the future are going to be built by data.
- There are currently three large transitions going on in real estate. Companies are investing in OpEx rather than CapEx, users are interested in experiences rather than objects and decision-makers are finally choosing data and technology over intuition.
- An increasing share of transactions will take place online which will increase liquidity. Governments in many countries are slowing this process down.
- Blockchain presents a huge opportunity for the real estate industry to use new distribution channels. It allows us to tokenize real estate investments, which means that non-professional investors can at last invest in high-class properties. Blockchain is beneficiary for investors as well as banks.
- With the help of blockchain, paper contracts can be converted into smart contracts. Digital leases greatly benefit the tenants. For example, if a store is not profitable, the lease is automatically cancelled. Still, it's not likely that contracts will be based on size, not footfall or revenue
- There's no retail apocalypse, it's an evolution. There will be a lot of changes and in the end, retailers will have a better understanding of what customers want.
- Shopping will always be a part of a functional city. Malls are not dead, but only top-tier shopping centres in good locations will do well in the future.
- Online retailers are becoming omnichannel sellers by opening physical stores (click-to-brick phenomenon) as with more ways one can reach more customers.
- The quality of data available is improving with the help of technology, and business decisions should be based on high-quality data. For example, up until now, high street footfalls were often counted by students using clickers every quarter. Now, laser scanners are being installed in many locations that provide much more frequent and accurate data.
