With just 4 months into 2019, PropTech’s impact on how real estate is used, bought, developed, managed and invested is exploding.
Here are 5 predictions of what will be most popular in the PropTech industry for the rest of 2019.
Disruption will give way to innovation
The real estate market remains keen on more innovation yet tires of disruption. Expect 2019 to be more of the former. Disruption and innovation and disruption are similar. Disruption takes a left turn by literally uprooting and changing how we think, behave, do business, learn and go about our day-to-day. But the best of PropTech innovates upon existing processes and practices, and works to eliminate unnecessary inefficiencies.
Consolidation and collaboration will increase
There are more than 6,000 PropTech businesses around the world. Although this is unsustainable, it is also an opportunity for significant industry collaboration and consolidation. Some start-ups must recognize that they don’t really have a scalable business model and others will find that they don’t have the capital to compete in a hyper-competitive market. In particular, watch out for some online real estate agents beginning to align themselves or even merge completely.
Real estate asset fracking
Real estate fracking uses technology to break or open up a real estate asset and monetize it in new ways, whether its office spaces, desks, conference rooms, or even parking spots. This will be an tremendous area for growth in 2019. As more start-ups offering hot-desking, conference rooms and parking reservations emerge, the next step might be digital advertising on the front facades on building and other areas will become an area for growth.
Property Firms will develop ‘Stacks’ of PropTech Solutions
There are a host of PropTech businesses in the mix, with each one tackling different niches across the industry. As property firms try to keep up with an ever-expanding playing field, they will need to develop their own collections of ‘stacks’ of PropTech solutions that work together. We will see a push towards more open technology, with the most successful PropTech solutions operating not in a silo, but in a stack of like-minded platforms to give property firms the competitive advantage.
Space-as-service platforms will grow
The commercial real estate industry is undergoing incredible structural change via a concept known as space-as-a-service. Long-term leases and skyrocketing property prices are making it difficult for young professionals to remain in metropolitan areas. This new business model, personified by WeWork and similar flexible office spaces, provides a suite of services that helps tenants utilize the space efficiently, including everything from digital connectivity to fixtures, furniture and even the staffing needed to operate their businesses.
