RICS has published an insight paper on tech revolution and the future of residential property, examining what PropTech means for the residential property sector and making recommendations as to how technology solutions can be applied to residential firms.
From research with thirty ‘deep technology’ experts from other industries, key points were:
Large corporate entities are not at risk from the proliferation of small property technology start-ups. Therefore, they encourage a more collaborative approach towards these, especially with regards to the sharing of scarce residential data.
The most innovative companies are those most interested in deep learning and machine learning. The research suggests the best application of these technologies for residential real estate will be in IA (intelligence augmentation).
The top ten recommendations for optimal implementation of deep tech in the real estate industry, according to respondents are:
- Use big data and machine learning to predict hot and upcoming neighbourhoods in cities.
- Machine learning and AI powered apps that show tenants the optimal places to live.
- Digitalise and secure land registry data via blockchain.
- Intelligent architectural design using artificial intelligence and machine learning.
- Use blockchain and virtual reality to take the agent out of the lettings value chain, through smart contracts and virtual viewings.
- Create a digital identity for all actors in the lettings value chain: landlord-property-tenant, seller-property-buyer.
- Engage interconnected smart devices and sensors to monitor and reduce energy use, minimising utility bills for residents.
- Real time property appraisals derived from pictures and videos using computer vision and deep learning.
- Intelligent property management driven by machine learning and artificial intelligence.
- Asset optimisation for portfolio managers through machine learning.
Commissioned by RICS and written by Houzen, the authors, Saurabh Saxena and Angelica Donati, said, “Deep technologies will shape the future of all industries, including that of residential real estate. Real estate professionals cannot afford to ignore the seismic shifts some of these technologies will bring.
What all stakeholders in the industry should ask themselves is not ‘should I care?’ but ‘can I afford not to care?’ We hope our research will help real estate firms and professionals embrace deep technologies and implement them in the most value adding way for their businesses.”
Paul Bagust (left), RICS Global Property Standards Director said, “It is clear we are undergoing a technological revolution and the pace of change is accelerating. This change is driving demand for key data analytics and related skills for existing professionals.
“Many of the roles that will exist in 2030 will combine skills in ways not imagined today. How our industry reacts to all these changes will be crucial to how the sector develops. We hope this report can be used as a tool to create debate and help strategic planning in a wide range of firms and organisations.”
For the full report, please contact: [email protected].