The Fourth Industrial Revolution is also being fostered here by the situation of COVID-19 and new conditions for how we live, eat, interact and function.
Innovations that support social distancing and remote work are being developed at leaps and bounds. And we’ll see FinTech, PropTech, HealthTech, EdTech — all ending with “tech”—making a step forward in the nearest future.
It is not an event of one day but rather a long journey.
In the meantime we have enough (or not quite enough) time, let’s see what changes we ‘re already seeing this year in the PropTech.
Take your seats, ladies and gentlemen, and follow the main real estate tech trends of 2020!
Okay, sit. Why should a well-established property developer take over smart homes or brick-and – mortar RE agency in the world-invest crazy sums in VR software?
The answer lies in a few real facts. You go here.
Fact n ° 1
58 per cent of top managers of commercial real estate believe that smart home facilities (e.g. lighting / climate control/) are essential for a better renter experience.
Truth n ° 2
59% of RE development professionals agree that partnerships between RE firms and technology startups are likely to attract greater financial support
Fact n ° 3
Proptech has a huge effect on commercial property growth according to 86 percent of RE backers, 31 percent of whom favor investments in PropTech to conventional real estate projects.
Truth n ° 4
Smart buildings were the most appealing innovation option for 36 per cent of PropTech investors.
Proof n ° 5
Most angels (65 percent) target PropTech commercial real estate while only 33 percent consider the leisure industry.
Truth n ° 6
Asset security and emergency contact details are key mobile device capabilities that offer superior customer experience for 56 per cent of executives.
The above indicates a general trend, which has now become a modern standard.
So, there is no other choice — you either join or drop out of the PropTech team. We’ll pick the first one. And you guys?
10 Trends in residential and commercial immobilier technology
Focus on emerging trends in real estate innovation rendering developers and companies extremely wealthy.
Investments in environmental and safety tech
User / tenant experience is becoming as important as ever to industrial RE companies.
Today, even the most seasoned landlords are waking the issue or keeping tenants at night.
More than 50 percent of respondents-property firms claim environmental and security engineering innovations would boost user experience, according to Deloitte.
This very survey says that 43 per cent of consumers are more likely to pay a premium for living in a smart apartment where lightning sensors and smart plugs can save money.
Others like the idea of adding emergency contact information to a mobile app, as it provides greater security. And smart locks with keyless access to a property of course contribute to the security of the customers.
Smart Cities & Constructions
Place isn’t the most important factor for renters to make rental decisions.
The IoT elements embedded into such revolutionary electricity, health, parking and car charging systems and behaviour analysis software for property maintenance, planning and tenants will become the order of the day within a few years.
Singapore, Hong Kong and China are among the countries leading in implementing IoT technologies.
Possible outcomes of smart cities include better quality of life, efficiency in government, faster economic development and public safety.
Developing this definition demands that all actors – local agencies, service providers, societies and residents – join together.
Some examples of smart technologies in cities:
- Eaton Lighting Join partners Telensa to provide smart street lighting;
- Dubai Smart Sustainable Cities;
- Plan city of tomorrow in Warsaw;
- Blueprint for Cisco ‘Intelligent Urbanization.’
Investments in data governance
Data governance is becoming more important for businesses that are reaping the benefits of Big Data and AI approaches for market analysis and forecasts.
Deloitte estimates that two-thirds of respondents in Asia plan to increase investment in the development and construction of data governance frameworks.
The main objective is to align new systems with existing processes, demands, roles and responsibilities.
These frameworks should be flexible and scalable, as the volume and complexity of data continues to grow.
If you are only taking the first step on this path, consider adding to your roadmap the following tasks:
- Define the roles and responsibilities of the data management;
- educate all parties about data ownership;
- Classify any type and format of the data;
- Choose appropriate Data Governance tools and software.
This is one of the industry’s most prominent disrupters in the nearest future.
The mix of recurring and constant costs has also driven public leasing demand. Automated technologies such as robotics are intended to cut prices for businesses and rationalize the use of labor.
As PwC states in its Study on New Trends in Immobilities 2020, the phenomenon has just showed up.
It will take the real estate companies at least five years to incorporate robotics in their business.
Robotics will undoubtedly change the workplace where the bulk of human physical work will be replaced with robo-helpers.
As for real estate, some repetitive back-office processes (invoice processing, NAV calculations and document screening) and customer support can be changed in the front office. Robots are currently used primarily in the construction and construction sector.
PwC, for instance, introduced Skyline Robotics not so long ago — the first robot window cleaner to remove the risks associated with this operation.
First, the US, then the UK and other countries — the world community in the real estate industry is steadily embracing this bold technology.
Why will driverless cars be beneficial to the real estate sector? While someone might think that all the hype about autonomous vehicles from Google and Uber is farfetched, they might become a real go-to for RE businesses.
The value of public transit and property assets constructed around transport hubs will grow with driverless vehicles.
It means that the price of commercial and residential property that had not previously been so attractive to renters because of its distant location can be equal to other offers.
In many countries, electric driverless buses are already being tested and are projected to become a faster, more cost-effective and safer mode of transit.
Another positive effect is less parking lots and garages, since Millennials tend to prefer crewless taxis to private cars.
AI to plann and evaluate
The deployment of both traditional AI methods (machine learning) and advanced real-estate technology — computer vision — is simply unfolding.
And their capacity for volatility in the building of sites and the property market is vast.
For eg, a US startup Indus.ai is providing neural network-based applications for property development companies.
The contractor installs cameras around building sites to make development works more effective. Cameras send videos over hundreds of related videos and images to trained networks. The result the networks generate helps agents make more informed decisions.
LocateAI is yet another example. A company assists businesses in selecting retail sites. Using AI technologies, experts analyze data and behaviour, internal and external market factors for consumers and assist in the development of competitor beating strategies.
Automated Leasing Management
AI solutions can boost lease management and make traditional (short- and long-term) forms more flexible.
Who does need this? In 2018 there was a rise in demand for scalable leasing models among tenants in the US and UK, according to Deloitte. The business change was recorded by 76 per cent of survey participants.
AI methods can help dealing with manual lease administration tasks which often lead to errors, lower speed and satisfaction of tenants.
Invoice processing is just one use case of deployment of AI technologies in the industry.
Companies such as Diffe.rent, Apartment Ocean and Travtus have smart solutions to automate routine tasks for RE agencies: leasing, maintenance and communication , customer support, marketing, and viewing set-up.
We like this trend that originated from the entertainment industry: solo viewings online, 360-degree videos, VR lighting, 3D floor — to name a few.
All these cool things boost the interest of tenants and their desire to look around dozens of assets to finally select an ideal one. Especially now, under conditions of “social distance.”
Potential renters and investors will reach any building either from desktops or mobiles, walk through spaces, install furniture to see how it would contribute to space, speak to a real agent and much more.
The commercial sector is a later adopter of DR technologies in the real estate industry, just like residential RE projects. Asian countries again rank among the leaders that leave Europe far behind.
There are a few ways to faster and more efficient implementation of DR:
- Using Pre-Development Technologies;
- Make predictions, and arrange project communication;
- Partner with stakeholders and tenants who may contribute to the development of projects.
The automation of workplaces
PwC cites the trend is emerging real estate industry trends. Workplace automation is equating to artificial intelligence and autonomous vehicles in terms of importance.
Today we will see a big shift in the orientation of organizations from tech-driven workspaces to people-centered environments. The key concept is to have more options and versatility – flexible plans with private nooks on demand, separate conference and collaborative zones, long-term rented office spaces, and so on.
More and more companies are taking into account the preferences and needs of staff while planning space-equipment amenities. Many staff would like gaming areas and others would need places for contemplation.
What’s more, businesses are becoming more mindful of societies and the well-being of people. Instead of investing in a modern office building with hi-tech technologies, they prefer to make current buildings more eco friendly or fix a transport issue.
The widespread use of IoT elements in smart homes poses several security issues which make players in real estate feel vulnerable.
PwC ranks that factor among the key disruptors. Omnichannel security is not only a problem, but also a broad business concept related to the employees and their training.
It’s not enough to focus entirely on third party apps and service providers; staff should be prepared with an appropriate range of skills to provide minimal risk for quicker implementation of new technology.
Deloitte proposes a few ways to tackle health problems:
- Create a viable policy on cybersecurity by engaging stakeholders in this process;
- Automate as many procedures as possible to reduce the human and data breaches;
- Check the possible providers of third party data;
- Build predesigned security systems;
- Include advanced user authentication access rights mechanisms such as face recognition , voice analysers, fingerprinting, geofening and geotagging.
The Future of Immobilities
The above is rather immersive, aren’t they? However, with these technology trends in commercial real estate and residential property the future of real estate may be even brighter:
Senior hi-end housing with advanced safety and flexibility;
Real estate as a service concept providing an unforgettable user experience;
Advanced authentication methods such as iris recognition cameras, DNA sequencing, vein readers, etc.;
Sustainability and construction ‘greening;’
Number of warehouses increasing;
Robots. More robots.
Inmovable properties and technology: business case TOG
Speaking of the developments in real estate technology in 2020, we can’t help but notice our top client — the TOG Office Company.
TOG is a developer and supplier of UK-based coworking space; the team creates uniquely built facilities and proposes flexible terms for businesses to thrive.
Today, TOG has 50 + buildings throughout the UK and Germany. The pillars of the TOG assets are: considered design (variable design and workspaces), focus on productivity (spacious natural light rooms), favorable contract terms, and location (every building is close to traffic interchanges.
Bold and sci-fi-like trends in immobilization technology are already disrupting the landscape.
What to expect in the coming months? Even wider digital reality deployment, robotics coupled with autonomous vehicles, old & good IoT and big data taking on new forms, and more.
Governments, businesses , and society will need time to become accustomed to a new environment and the consequences of the global lockout. Real-Estate-as-a-service model, senior living and sustainable communities with a focus on security are likely to take root and develop next year.