Thanks to technology, commercial real estate (CRE) is no longer just about the location. While the location is still essential to customers, applications have proved to add new ways for the CRE sector to create value for customers, differentiate from competitors, and even find new sources of revenue. Technology or rather PropTech has comfortably gone hand-in-hand with CRE and one can witness the change in the way properties are now being developed.
CM today talks to Adel El Mawla, the Managing Director at Proptech Community, a new global initiative based in Dubai connecting PropTech innovators with investors and enablers for business development and investment opportunities.
While giving insight into the impact technology has had on property development, Adel also sheds light on 3 technology trends that one cannot ignore. “There are many stakeholders in PropTech from startups to investors to corporate to enablers etc. The verticals in property development are also many in the value chain such as analysis and financing, site selection and negotiation, space management, construction, etc. Not mentioning that it’s the largest asset class in the world and awaiting a lot of transformation,” adds Adel.
All of these are opportunities we can tap into, says Adel, however there are 3 main technology trends he identifies today that will shape the future of the real estate industry.
1. The first is Artificial Intelligence (AI) and predictive analysis which will be transformative by providing all stakeholders actionable data to make better managerial and/or investment decisions. AI has helped companies to move beyond a focus on cost reduction. The various applications aim to grow margins and enable features such as dramatically more efficient building operations, enhanced tenant relationships, and new revenue generation opportunities.
2. The second is the shared economy which will transform how assets will be managed and built as we’re heading towards space as a service norm. The sharing economy relies on an ability to identify and exploit spare capacity and to reduce the associated search, bargaining, and enforcement costs of a transaction, thus facilitating more efficient allocation of unused space. With blockchain reportedly offering enhanced transaction speeds and auditability for micropayment solutions, soon one may see space-as-a-service offerings begin to extend into the realm of digital space.
3. The third is space visualization (VR, AR, holographs, etc.) which will revolutionize the way real estate projects work in all value chains from design concepts to property management. Introducing the market to technologies in these spaces while helping in the adoption process is a great opportunity awaiting us.