Proptech is taking over the CRE industry
According to Deloitte, today, the value of the property is not defined solely by the space and its location but by the blend of real estate information technology and superior tenant / buyer experience.
Here is a list with some of the emerging tech trends we should watch in the CRE industry:
- Haptics – Haptic technology delivers the ability to feel even while you’re experiencing things in virtual reality. A revolutionary piece of tech for experiencing an even more true-to-life version of the world in the metaverse, as well as being transformative to the way we work remotely.
- Miniature servers – Climate-controlled, portable server rooms are becoming more commonplace as they increase flexibility and an occupier’s ability to customize their space.
- Digital twins – A digital twin is a digital representation of a physical asset, such as a building, that allows for predictive modelling.The Hickman building, in London, is using such technology. It has been designed to meet Great Portland Estates’s vision to continually innovate to enhance occupiers’ workplace experience. The smart building links a digital twin with Sesame, GPE’s workplace app, to allow occupiers the chance to make the most of every day.
Hickman Building is the first building globally to achieve the prestigious SmartScore ‘Platinum’ rating. WiredScore launched SmartScore, the certification for smart buildings, in April 2021. Providing a global standard, SmartScore identifies best in class smart buildings that deliver an exceptional user experience, drive cost efficiency, meet high standards of sustainability and are fully future-proof.
- Cloud Computing and Storage – The whole idea behind the cloud is to let companies store their data, say client or property details, online without having to manage onsite data centres or organize paperwork. This means they no longer need to worry about data security and accessibility, system maintenance, and room for document storage.
- Blockchain – Blockchain technology is favoured by real estate developers for construction projects and by agents for making secure payments. Investors can benefit from this real estate tech trend for fractional property investment, while landlords can use it to sell portions of their stake in a given holding.
- Robotic Process Automation (RPA) – RPA is a general notion for any software that automates manual, repetitive, and rule-based processes and tasks.The most obvious area of application of this disruptive technology is the real estate back-office, e.g., the generation of brochures and invoices, management of payments, renewals and credit applications, multi-tenancy risk control, and more.
- The Independent Data Layer (IDL) – We increasingly depend on data to make the buildings better, safer, and smarter. Purpose-built to provide a reliable and straightforward solution for not just extracting data from buildings systems, but also for managing storage and access IDL is a new approach which creates a clearer air gap between the responsibilities of the landlord (which is to present data consistently in a structured way) and the onsite service provider or tenant (which is to use that data to deliver better outcomes).
When it comes to property management, data is the undeniable king. It informs better spending, better energy use and, ultimately, drives cost efficiencies and a more enjoyable in-building experience. But whilst data is an all-powerful, must-use tool, it’s also highly problematic, with data acquisition one of the industry’s biggest challenges in achieving digitisation.
- Smart Buildings / IoT and Green Building Technology – has been on the real estate agenda back from the early 2000s, but today they are much more affordable.With the increased demand for digital systems to track and improve energy use, manufacturers and installers increasingly adopt efficiency-enhancing building materials and systems. One way to do this is to install low-carbon heating and cooling systems, such as heat pumps and energy-efficient A/C.
- Virtual Reality – The use of virtual reality (VR) and augmented reality (AR) is not a new trend, but it is something that the pandemic has definitely accelerated. Amid closure policies, many agents and property owners had to resort to virtual property tours as the best alternative to live showings. This practice exhibited major benefits over traditional property showings, demonstrating its potential in the future as well.
- The Metaverse – The global metaverse real estate market alone was valued at $821.9 million in 2021, with a projected increase to $5.95 billion by 2028. This growth is supported by developments in other real estate tech trends like VR, AR and the introduction of blockchain technology to real estate.
- Online real estate marketplaces – While online marketplaces are nothing new, they are only growing in popularity, because they allow users to refine their search by a number of important factors including size, price, neighbourhood, or amenities. Most online real estate marketplaces listings include professional photos and even virtual tours of a property. Users can gain access to all of this without ever speaking directly to a realtor.
- Digital mortgages – Thanks to technology, mortgage lenders now offer online tools, enabling consumers to complete mortgage loan applications from the comfort of their homes.