PropTech: The New Disruptor

By Edel Christie, UK Managing Director - Buildings, Arcadis

Edel Christie, UK Managing Director - Buildings, Arcadis

The property industry is ripe for disruption. Whether it is about reimaging the workplace of the future through better use of data and analytics, speeding up the house buying and selling processes or embracing smart contracting through blockchain technology, the rapid acceleration of digital technology is transforming the real estate and property market for the better.

PropTech is not just another buzzword; it will be the defining feature of the real estate industry into the next decade and beyond. But as one of the biggest game-changers the industry has seen in years, what exactly does PropTech mean?

At the most fundamental level, PropTech comprises digital solutions that will help create smart and efficient buildings and make property and construction transactions quicker, more transparent and better value for money. Crucially, it will transform the customer experience.

It is changing how we, as citizens, experience the world; whether that is in the workplace, the home, schools, the high street, or beyond. This can have a huge impact on the way in which our environment is designed and how it operates around us, in a sustainable way for the future.

Understanding how we can use innovation and digital solutions not only to facilitate ease and efficiency of delivery, but also meet the changing needs of citizens, will be essential in navigating this new era of disruption.

PropTech and the Real Estate Industry

Digital transformation is driving both technological and cultural change, and nowhere is this more apparent than in today’s real estate industry.

From automated smart buildings to the shared economy, exemplified by the popularity of Airbnb and WeWork, and the rise in Real Estate Fintech—data platforms like Purple Bricks, which facilitate the trading of ownership, mortgage technology, property leasing and portfolio management—PropTech can be realised in many different forms.

In the same way that FinTech has revolutionized how we engage with the financial and banking sector, the growing market for PropTech is evident in the rapid increase of short-term rentals, co-working and the trend for pop-up retail. Meanwhile smart real estate—individual intelligent building systems or entire urban areas in the form of smart cities—is redefining the very nature of built assets. From how we plan, construct and operate to perhaps most importantly, how we interact with our homes, offices, schools and more, PropTech will become increasingly integral to every aspect of the real estate industry.

The Future is Now

PropTech is the future of real estate and harnessing its power will continue to be one of the most important drivers for our sector. We know that the entire industry is ripe for disruption and we have a choice; we can be disrupted from the outside-in, or we can be proactive in making the change ourselves.

Developing new solutions and using technology to drive productivity and efficiency will be integral to understanding and solving not only the problems of today, but also addressing the issues of tomorrow. Yet at the same time, we need to acknowledge that we cannot make the change alone. Collaboration will be key, and we need to work closely with clients and the wider industry to understand problems, share knowledge and co-create solutions. Digital Accelerators are particularly interested in the emergence of PropTech, and wider eco-system partnerships are increasingly becoming the norm.

The way in which we capture, embrace and apply new technology will define not only the future of our business, but the entire direction of the industry. It is an exciting time and in realizing PropTech solutions across every aspect of our business, the client and customer benefits could be endless.

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