Real estate industry has stepped up technology focus, but "PropTech" strategies are lagging
Real estate industry has stepped up technology focus
Nearly all (93%) real estate industry decision makers agree that real estate organisations need to engage with property technology – or ‘PropTech’ – in order to adapt to the changing environment
- Nearly all (93%) real estate industry decision makers agree that real estate organisations need to engage with property technology – or ‘PropTech’ – in order to adapt to the changing environment.
- Two thirds (66%) do not have a clear enterprise-wide vision or strategy that addresses digital disruption or innovation.
- 57% said they would look to collaborate with an existing PropTech supplier, whilst nearly a third (30%) said they currently invest in a PropTech start-up or plan to.
Real estate professionals are upping their technological game in order to adapt to the rapidly changing environment. However, not all believe their organisation’s vision or strategy is up to scratch, according to the latest KPMG Global PropTech report: The road to opportunity.
Now in its second year, the global survey of key real estate players revealed that there continues to be increased awareness of property technology or ‘PropTech’, as well as engagement with it. However, organisations continue to struggle in their execution, with a lack of understanding of the possible applications, whether that means becoming a more customer-centric business or disrupting the status quo to gain a competitive advantage.
Commenting on the findings, Andy Pyle, UK head of real estate at KPMG, said:
“PropTech has certainly climbed the boardroom agenda, but we all know that talk and action are two very different things. While the industry has become increasingly aware of the impact technology is having, how to adapt to this digital age still requires further thought.
“Disruption is rife in all industries – with real estate being no exception – therefore agility and leading the pack is key against a backdrop of rapid change.
“It’s not just a case of implementing technology for technology’s sake though. Organisations are increasingly taking a more holistic view in developing their strategies, making sure they develop a better understanding of their customers and creating a more innovative and collaborative approach in order to gain a competitive advantage.
“Real estate has typically lagged behind other industries, at least where digital innovation is concerned. This is perhaps the by-product of the long standing view of bricks and mortar and the apparent security and solidity is provides. But I think the future holds a much greater spread of financial returns going forward, and real estate decision makers need to consider how technology will impact their properties, their business and the evolving needs of their customers – the occupant.
“The challenge for property companies is to start embracing technology and innovation without delay, so they are winners and not losers in future. As the latest findings suggest, the industry is certainly taking note of this but still has a long way to go in its quest to futureproof itself.”
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About the KPMG survey:
To better understand the global real estate sector’s latest attitude to PropTech and the steps that organisations are taking to adapt to the digital age, KPMG member firms conducted an online survey of real estate professionals between June and July 2018. 270 real estate decision makers from across 30 countries and three global regions were surveyed: EMA (60%), Americas (12%) and ASPAC (28%).
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