PropTech potential

Are you ready for a very special period in the property business? The stage is set for a fascinating array of new launches and developments in the PropTech sector that could change the way your agency operates, modernizing systems and processes, improving efficiency. So if PropTech 2017 really is the ‘moment’ for the movement, what does that really mean? What is going to happen? Who’s making it happen? Who could be left behind?

When a new industry is born, the few people involved need to be secretive, but PropTech isn’t new. It’s young and it’s growing up fast. James Dearsley, ProperTech specialist.

THE USA… AND THE UK

After a year of USA Presidential Election turmoil, the dust has settled, unknown entities are known; the reality of Donald Trump is, surprisingly, less unsettling to the markets than the long battle for leadership. The doomsday projections for life after a Trump victory have not occurred. The country hasn’t collapsed, domestic investment will probably rise, creating new opportunities for monetising good ideas.

Back in the UK, eight months since the Brexit vote, not much has changed in business; London is still buzzing investors are still investing (albeit a little more cautiously). The world has calmed down and much can be achieved.

NEW DEALS

First off, we heard that CBRE has acquired Floored, a tech start-up which focuses on interactive 3D imaging. Large companies buying up smaller ones with specialised tech isn’t new, but CBRE may be setting the tone for PropTech 2017. CBRE has been a player for 100 years – making this deal even more interesting. When one of the oldest firms in the market opens its doors to future technology, it shows that even the most successful organisations recognises that, if they are to stay ahead of the game, they need to watch the infant companies launching innovative tech.

RICS REVELATIONS

A recent report published in collaboration with RICS noted that significant investment will be pumped into the development of new technologies for the property sector. The report indicated high investor confidence and a positive market mood, saying, “92 per cent of venture capitalists are looking to exceed or at least match 2016 deals in 2017.”

Martin Clark, Managing Partner at Stiles Harold Williams, a property firm with a management portfolio of around $16 billion, believes that the current market is, “buoyant despite uncertainties”. That’s a confident projection; as it signals that the potential for start-up disruption in PropTech 2017 is immense.

THE FUTURE

Virtual Reality is definitely set to soar in 2017. As the VR experience becomes truly immersive, property experts are now noting signs of an increased uptake in virtual walkthroughs in real estate as movement sensors and animation improve and the cost of this PropTech reduces. Any investor, anywhere in the world, can not only ‘view’ but take a convincingly natural walk around a dozen potential properties without going anywhere near an airport.

Construction tech – including the divisive drone tech – is also looking towards a good 2017 with impressive potential for growth. The drones alone offer the potential to scan sites for condition, dilapidations, defects quite aside from taking those eye catching shots for the marketing department.

COLLABORATION CELEBRATION

And then, of course, there is going to be a Collaboration Celebration. When a new industry is born, the few people involved the better, they need to be secretive. But PropTech isn’t new anymore. It’s young, for sure, but it’s not new.

The best tech is built with fluid frames and can be shaped into different forms to suit different potential markets, so the innovators look away from their screens and across the garden to their neighbours. Every piece of technology that every user gets the opportunity to try out has the potential for improvement, for development, for new applications.

For the inventors and designers to stay dynamic, sharp and current they need collaboration. They need the fresh eyes and exciting new ideas that it brings. Collaboration is evolution, and vice versa. I predict that PropTech 2017 will see these rates of collaboration dramatically increase as more companies nurture and develop their young superstars to become truly useful adults.

I’m not a magician and I can only guess the future, so there is, of course, a very sad chance that none of the above happens. Maybe something else will happen. If could be certain! One thing though, is for sure, though: all those of us who are magnetised by the potential of PropTech, who enthuse about PropTech, 2017 has the potential to invigorate and inspire – there is simply so much there for us all.

James Dearsley: www.jamesdearsley.co.uk