The Fourth Industrial Revolution is already being fostered here by the situation of COVID-19 and new conditions on how we live, consume, interact and function.
Innovations that enable social distancing and remote work are being built at leaps and bounds. And we’ll see FinTech, PropTech, HealthTech, EdTech — all starting with “tech”—making a step forward in the nearest future.
This is not an experience of one day but rather a long journey.
In the meantime we have ample (or not quite ample) time, let’s see what improvements 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!
Well, wait. Why would a well-established property developer take over smart homes or brick-and – mortar RE agency in the world-invest insane amounts in VR software?
The solution lies in a few simple facts. You go here.
Proof n ° 1
58 per cent of top managers in commercial real estate agree that smart home facilities (e.g. lighting / climate control/) are important for a better renter experience.
Truth n ° 2
59% of RE growth professionals agree that partnerships between RE companies and technology startups are likely to draw greater financial support
Truth n ° 3
Proptech has a huge effect on commercial property growth according to 86 percent of RE investors, 31 percent of whom favor investments in PropTech over conventional real estate ventures.
Truth n ° 4
Smart buildings were the most attractive engineering choice for 36 per cent of PropTech investors.
Truth 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 top mobile device features for 56 percent of executives to offer outstanding user experience.
The above indicates a general trend, which has now become a new 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 industrial immobilier technology
Take on current trends in real estate tech making developers and agencies extremely wealthy.
1. Investments in environmental and safety tech
User / tenant experience is now as important as ever to commercial RE firms.
Today, only the most seasoned landlords are awakening the issue or keeping tenants at night.
More than 50 percent of respondents-property companies believe environmental and security engineering investments would boost customer experience, according to Deloitte.
The same 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 will save money.
Some prefer the concept of adding emergency contact information to a mobile device, because it offers better security. And smart locks with keyless access to a property of course contribute to the security of the customers.
2. Smart Cities & Constructions
Place isn’t the most significant consideration for tenants to make rental decisions.
The IoT elements incorporated into these revolutionary electricity, health, parking and car charging systems and behavior analysis applications for property management , 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 adopting IoT technologies.
Developing this definition requires that all stakeholders – local authorities, service providers, societies and residents – join forces.
Several examples of smart technology in cities:
- Eaton Lighting Enter partners Telensa to deliver smart street lighting;
- Dubai Smart Green Cities;
- Plan city of tomorrow in Warsaw;
- Blueprint for Cisco ‘Intelligent Urbanization.’
3. 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 forecasting and forecasts.
Deloitte estimates that two-thirds of respondents in Asia intend to increase investment in the growth and implementation of data governance frameworks.
The key goal is to reconcile new structures with current procedures, requirements, positions and responsibilities.
Such structures should be versatile and scalable, as the amount and complexity of data continues to expand.
If you are just taking the first step on this path, consider adding to your roadmap the following tasks:
- Define the functions and responsibilities of the data management;
- Inform all parties about ownership of data;
- Classify any sort and format of the data;
- Use correct Data Governance tools and applications.
It is one of the industry’s most influential disrupters in the immediate future.
The combination of continuing and recurring costs has also driven public leasing demand. Automated technologies such as robotics are intended to cut costs for businesses and rationalize the use of labor.
As PwC states in its Report on Emerging Trends in Immobilities 2020, the phenomenon has just turned up.
Robotics would certainly alter the workplace where the majority of human physical labor will be replaced by robo-helpers.
As for real estate, certain routine back-office procedures (invoice collection, NAV calculations and document screening) and in the front office offering customer service can be modified. Robots are currently used mainly in the manufacturing and technology field.
PwC, for instance, introduced Skyline Robotics not so long ago — the first robot window cleaner to remove the risks associated with this operation.
5. Autonomous cars
First, the US, then the UK and other countries — the global community in the real estate industry is gradually adopting this groundbreaking technology.
Why will driverless cars be beneficial to the real estate sector? Although somebody might think that all the buzz around autonomous cars from Google and Uber is farfetched, they could become a real go-to for RE companies.
It means that the price of commercial and residential property that had not previously been so attractive to tenants because of its distant location can be equal to other offers.
In several countries, electric driverless buses are already being tested and are expected to become a cheaper, more cost-effective and healthier mode of transportation.
One beneficial result is fewer parking lots and garages, because Millennials tend to favor crewless taxis to private vehicles.
6. AI to plann and evaluate
The deployment of both traditional AI methods (machine learning) and advanced real-estate technology — computer vision — is simply unfolding.
But their capacity for volatility in the development of sites and the property market is huge.
For example, a US startup Indus.ai is providing neural network-based solutions for property development firms.
The provider installs cameras around construction sites to make building works more effective. Cameras send videos over hundreds of related videos and photos to professional networks. The result the networks produce lets agents make more educated decisions.
LocateAI is just another example. A corporation supports companies in choosing shopping locations. Using AI tools, experts analyze the data and behaviors of customers, internal and external business drivers and help develop strategies for beating competitors.
7. Automated Leasing Operations
AI technologies will improve lease management and make conventional (short- and long-term) types more flexible.
Who really need this? In 2018 there was a rise in demand for flexible leasing models among tenants in the US and UK, according to Deloitte. The market 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 only one use case of implementation of AI technologies in the industry.
Organizations such as Diffe.rent, Apartment Ocean and Travtus provide smart solutions to automate daily activities for RE agencies: leasing, maintenance and correspondence, customer service , marketing, and viewing set-up.
8. Digitalised reality
We like this trend that originated from the film industry: solo viewings online, 360-degree videos, VR lighting, 3D floor — to name a few.
All these cool things fuel the confidence of tenants and their ability to search around hundreds of properties to eventually pick an ideal one. Especially now, under conditions of “social distance”
Potential tenants and buyers can reach any building either from desktops or mobiles, stroll through spaces, add furniture to see if it will add to space, speak to a real agent and much more.
The commercial sector is a later adopter of DR technology in the real estate industry, just as residential RE ventures are. Asian countries again rank among the leaders that leave Europe far behind.
There are a few approaches to quicker and more effective implementation of DR:
- Using Pre-Development Technologies;
- Create forecasts, and plan project communication;
- Partner with stakeholders and tenants who may contribute to the construction of projects.
9. The automation of workplaces
PwC cites the trend is emerging real estate market trends. Workplace automation is equating to artificial intelligence and autonomous vehicles in terms of significance.
Today we can 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, various meeting and collaboration areas, long-term leased office spaces, and so on.
More and more businesses are taking into account the expectations and desires of workers when designing space-equipment facilities. Some staff would prefer game areas and others would like spaces for meditation.
What’s more, businesses are becoming more mindful of societies and the well-being of people. Rather of investing in a new office building with hi-tech technology, they prefer to make current offices more environmentally friendly or fix a transport issue.
10. Omnichannel Safety
The widespread use of IoT elements in smart homes raises many security issues which make players in real estate feel vulnerable.
PwC ranks that factor among the key disruptors. Omnichannel protection is not only a challenge, but also a specific business concept related to the employees and their training.
It’s not enough to rely exclusively on third party apps and data providers; staff should be equipped with an appropriate set of skills to provide minimal risk for quicker adoption of new technologies.
Deloitte proposes a few ways to tackle health problems:
- Create a viable policy on cybersecurity by involving stakeholders in this process;
- Automate as many procedures as possible to reduce the human and data breaches;
- Vet the potential providers of third party data;
- Create predesigned security systems;
- Including advanced user authentication access rights mechanisms such as facial recognition , voice analysers, fingerprinting, geofening and geotagging.
The Prospect of Immobilities
The following is very immersive, aren’t they? Nevertheless, with these technological developments in commercial real estate and residential property the future of real estate could be even brighter:
- Senior hi-end accommodation with integrated protection and flexibility;
- Real estate as a business definition offering an unparalleled user experience;
- Advanced authentication methods such as iris recognition systems, DNA scanning, vein scanners, etc.;
- Sustainability and building ‘greening;’
- Amount of warehouses increasing;
- Robots. And robots.
Inmovable property and technology: business case TOG
Speaking of the developments in real estate technology in 2020, we can’t help but recognize our top client — the TOG Office Group.
TOG is a developer and provider of coworking space in the UK; the team designs beautifully built buildings and provides flexible terms to enable companies to thrive.
Today, TOG has 50 + buildings in the UK and Germany. The foundations of the TOG assets are: considered architecture (variable architecture and workspaces), emphasis on efficiency (spacious natural light rooms), advantageous contract terms, and location (every building is close to traffic interchanges.
Bold and sci-fi-like developments in immobilization technology are now changing 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 , companies, and society will need time to become accustomed to a new reality and the consequences of the global lockout. Real-Estate-as-a-service model, senior living and smart cities with a emphasis on security are likely to take root and develop next year.