Proptech applications are swiftly growing in real estate as the industry looks to implement a new generation of innovation to simplify processes and create a competitive advantage. The Urban Land Institute, in partnership with Goodwin, recently released a report—Proptech: Changing the Way Real Estate Is Done—to help the industry understand how companies are integrating this technology and how it will impact business functions.
The report is based on survey data from 200 real estate companies that recently adopted proptech across 11 business areas.
Key findings:
– Real estate companies are implementing proptech across several areas: management and financial streams, design and construction, leasing and tenant relations, data analytics, health and wellness, climate impact forecasting and mitigation, and more.
– 80% of companies utilizing proptech report a positive impact on operations and services, with 70% seeing a positive influence on decision-making and finances.
– Proptech applications are snowballing to provide greater profitability; for example, customer-facing tech that works to increase tenant retention and as a first touchpoint proves valuable because it has two applications.
– There’s been an increased focus on data analytics, only second to project management which is the primary focus for the next three years.
– Companies are looking to improve accessibility to data across all business units.
The following areas are seeing extensive adoption in the real estate space: Data analytics (63%), space and use design (57%), health and/or wellness (56%), property management (51%), climate risk and mitigation (43%), project management (43%), construction (39%), leasing/tenant transactions and relations (37%), transaction management (35%), portfolio management (30%) and raising capital (30%).
“The most proactive companies are pursuing multiple business strategies to stay ahead of change and innovation made possible by technology, and to identify and access optimal technological solutions as they become available or to encourage new solutions,” reads the report.
Liz Dominguez is RISMedia’s senior online editor. Email her your real estate news ideas to lizd@rismedia.com.