Trends in real estate that will shape the next decade
Several drivers of innovation will change the image of the real estate industry in the next decade. From smart navigation setup to innovative business solutions, ConTech and AI – it is inevitable that they will be in the upfront for investment capital. In this occasion, we will mention the areas that would be in the spotlight.
Definition of ConTech
After years of property technology (PropTech) being in the centre of attention, construction technology or ConTech is now the industry’s driving potential. An estimated 7% of the world’s workforce is in the construction business. Compared to PropTech, ConTech is still in its infancy, but without a doubt, it makes a breakthrough that will soon be considered as a separate field. While big software solutions like Autodesk are consolidating their place in the construction software market, only-tech companies make significant changes in cloud-based project management. Plenty of small start-ups impose creative thinking, cost-effective and savvy solutions in the construction market. These insights only prove the industry-wide funding and growth in ConTech that went from a modest $584m to $2.1 bn in 2019.
Artificial Intelligence contribution
Experts and tech enthusiasts say without a doubt that AI will remain on the rise during this decade, and probably the next one. This technology already made a significant impact on the industries that recognised the importance of personalisation and customer-oriented approach. Here, we will mention healthcare, gaming and IT that completely transformed their working concept with the adoption of AI. Virtual tours, augmented reality and real-time experience have become a trigger for the population. The casino gaming industry has started to make small but significant steps in this field. Casino game developers strive to offer complete experience behind a game. So, for example, if you want to explore the mystery Aztec world of the Secrets of the Phoenix slot review both from a perspective of a player and a tourist, that could soon become a reality.
The adaption of AI in real estate will expand into more complex areas across the categories of automation and support. This will enable the industry to automate manual and repetitive tasks, helping the professionals to accomplish tasks faster and make better decisions. The acceleration of this technology is what will become a game-changer. In the long term, the adoption of od AI will lead to a significant reduction in costs, CO2 emissions while increasing the ROI.
Yet, a shift in the educational system has to happen for humans to evolve at the same pace as technology. Most crucial human value differentiators are by emotional intelligence and soft skills. Therefore, we must urgently revision training programs and priority placed upon learning new skills.
People are the ones who make big investments within the real estate market through buying properties. If they don’t feel comfortable through their whole experience, then it’s a business loss. Having a successful and customer-centric service makes the customer understand the needs and challenges and quality of life they desire. Generation Z, which is currently shaping the global market demand, is well aware, informed and curious about innovation. They’re deep into the human experience, interaction and comfort. This generation is also called the network generation, which influences the future of work and communication.
Apart from having an impact on property management trends, Gen Z is part of a workforce shift called “from productivity to creativity”. The future will be focused more on productive workplaces and less on efficiency. This insight will likely drive a search for technology which will allow fluid decision-making and communication.
The industry’s focus on sustainability won’t be left aside in 2020. Both ConTech and PropTech are likely to be called upon to solve environmental challenges. PwC annual report called “Building the Future” points out that the global stock of institutional-grade real estate will expand up to nearly $70 trillion in 2030. Technology is already disrupting real estate economics, and by the end of 2020 will reshape entire sectors.
On the other hand, economic experts agree that Europe is still lagging the US in terms of PropTech Funding. Statistics come up with findings that there is 34 times more investment in the US compared to the EU market. A new EU funding mechanism plans to co-ordinate public and private start-up funding to boost the European landscape, create jobs and drive innovation. Despite the uneven global terrain, prospects for ConTech and PropTech are being enriched by new tech hubs that will soon unlock new, transferable solutions.