technology Outlook 2020
What is the real estate sector scared of?
The real estate industry is now witnessing some fundamental changes. In the decades ahead, real estate stakeholders will look back on the early 21st Century as an often-out-dated marketplace. Many areas of the real estate industry have been transformed by the implementation of technology. From the construction of buildings to their asset and property management, we are seeing structural changes in the way occupiers, investors and real estate advisory companies do business across the board
In this report, we look at the key tech trends that will make the difference in 2020 –exploring how technology is evolving, how ethical values are related to the growth in data usage, and how you can plan for new technological strategies.
New construction techniques
2020 will likely see a jump in the use of Building Information Modelling (BIM), which is now considered a major development within the industry. This involves the use of data and 3D modeling to manage the physical and functional characteristics of a building during the construction process. Startups within the industry are also developing the use of robotics to aid in the most dangerous stages of constructing a building.
Analytics are the new normal
Big data has given rise to smart buildings, which streamline time-consuming processes and provide full visibility of building operations. The insights generated can help property managers to reduce expenses, improve people’s experience of the workplace, and address inefficiencies (e.g. office space is used for just 42% of the day on average). Increased use and availability of data also helps real estate agents to better advise occupiers on the right location.
More startups in real estate
Real estate stakeholders continue to look for ways to optimise investments and avoid decreasing returns. Some take a venture capital approach by investing in companies that are building tech tools, whilst others build these internally. A common method is to hire workers with skills in the technological realm and integrate them within the traditional real estate skillsets. But a growing part of the real estate landscape now consists of initiatives from tech companies and new entrants, who will continue to challenge the industry.
In our Technology Outlook report, we further examine how the industry is catching up – and how machine learning is changing investment.
Download now to find out how developers and investors can fully capitalise on 2020’s changing landscape.
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