“The real estate sector has made promising progress over the last 12 months as more incumbents become aware of the potential for technological and digital innovation to transform their business. Whether this transformation is positive or negative remains in the hands of decision makers – those that choose to act now and engage with the digital age will be the ones to thrive, whilst those who do not may not survive. We are not yet at a point where failure to engage with technology may lead to imminent collapse, but organizations need to recognize that now is the time to be trialing solutions, making mistakes and understanding how their value proposition may have to evolve in the future. This means developing a holistic strategic vision and taking steps to become more agile and innovative in implementing it, which often takes time and requires a cultural shift in the organization.” Source-KMPG
An annual review of the real estate industry’s journey into the digital age. There is increasing awareness of the impact of technology on the real estate industry, but organizations are starting to realize that the digital age is about more than just technology.
Technology has risen up the real estate industry’s agenda in recent years, as property organisations seek to understand what the digital age means for them. KPMG’s 2017 Global PropTech survey revealed that whilst the Real Estate sector is aware of the potential changes technology will bring to the industry, very few have taken steps to prepare their businesses for the challenges and opportunities that lie ahead. 76 percent of respondents didn’t have an enterprise-wide digital strategy, demonstrating a clear gap between acceptance and action.
It is evident from the 2018 survey results that the real estate industry has made a start on the road to realising the opportunities that technology and innovation can bring. But there is still some way to go.
Key findings from the report include:
- 97 percent think digital and technology innovation will impact their business.
- 60 percent think this impact will be very significant.
- 73 percent see digital and technology innovation as an opportunity. A further 25 percent see it as both an opportunity and threat.
- 93 percent believe “Traditional real estate organizations need to engage with PropTech companies in order to adapt to the changing global environment”.
- 66 percent do not have a clear enterprise-wide vision and strategy when it comes to digital and technology innovation
For more information download KPMG report: The road to opportunity – An annual review of the real estate industry’s journey into the digital age.
Originally reported by PropTch South East Europe