RE:Tech 2016 Futures Report - Emerging Trends in Real Estate Tech
Real estate has gone beyond the digital tipping point. The sector is gathering momentum towards rapid and wide scale transformation, driven by both real estate technology and a responding wave of innovation investment with both residential and commercial brokerage firms.
The challenge for real estate is to understand the technologies that are reshaping and will continue to reshape the future and how to strategically invest towards the future. The way residential and commercial brokerages think about management of the built environment is already changing dramatically. Residential and commercial brokerage services are also empowering themselves with technology, allowing them to work more effectively and deviate from traditional working hours and practices.
In response to increasing opportunities and threats posed by emerging technologies and competition, real estate companies, including brokerage firms are spending a high proportion of their IT and media budgets on new investment. Since 2014, brokerage firms, JLL, Cushman and Wakefield, and CBRE have all redesigned their web and mobile presence, including upgrades to web UX, with some investing in tech focused programs.
At the same time, real estate tech entrepreneurs are disrupting the market with new products, capturing the hearts and minds of early-adopter consumers and partnering with high-powered real estate services players. Real estate tech enterprises think and act differently to traditional services businesses; technology focus and the ability to work outside traditional boundaries makes brokerage extremely agile.
To leverage future technologies effectively and competitively, real estate firms need to decide where they intend to differentiate. This differentiation strategy will create a paradigm to define investment. When this direction is in place, real estate firms will understand their own technology adoption landscape. Currently, real estate firms are pursuing competitive advantage through three paradigms:
- Enhancing and extending enterprise efficiency through technological transformation
- Improving customer propositions for greater revenue
- Changing culture by providing resources to increase performance