Industry leaders in both real estate and PropTech view AI/Automation and Big Data as the two major gamechangers in the next three to five years, with more than 78% of industry leaders in real estate looking to adopt AI in the next few years, according to a new survey.
The survey, which was conducted by the UK PropTech Association (UKPA) and the British Property Federation (BPF) and supported by REdirect Consulting follows the recent merger of the UKPA and BPF (BPF-UKPA) and highlights the views of industry leaders across the sector.
The survey respondents, comprising of real estate professionals and industry leaders in PropTech, anticipate that tools such as AI are expected to revolutionise how property is developed, managed, and experienced in the near future.
82% of respondents saw technology as the key to reaching Environmental Social and Governance (ESG) goals, while a similar proportion have a digital or technology strategy in place covering at least part of their business. In addition, ownership for driving technological innovation and change was found to often sit at a senior level within organisations, showing the property sector is thinking strategically about the opportunities for technology to enhance performance.
The survey also revealed the many challenges and concerns faced by the market. For the PropTech sector in the UK, the data reveals technology providers grappling with the fragmented nature of the property industry (53%), achieving enough sales to grow their businesses (38%) and dealing with legacy systems and processes (36%). Commenting on the survey, Sammy Pahal, Managing Director at the UKPA said:
“As the survey results reveal, it’s clear that technology and innovation is moving up the agenda, with the majority of the responsibility now with C-suite professionals and senior managers to take the lead, making sure that technology is part of the wider business strategy and engagement is maintained at all levels.
The UKPA’s Tech & Innovation programme will play a pivotal role in supporting individuals in these positions to navigate digital transformation and will aim to break down barriers identified by creating an environment for closer engagement between PropTech and property professionals at all levels throughout the programme. This will be critical to driving digital transformation and creating a culture of innovation within the wider industry.”
Callum Board, Client Success Director for REdirect Consulting, said that the challenge around legacy systems and processes can “certainly be met through tech innovation and an increase in investment into the UK PropTech sector”. He continued:
“Investment in the sector has certainly seen an uptick over the past 12 months and as these survey results show, we can expect more property companies to adopt new technologies, such as AI to beat industry inefficiencies. As an industry, we stand ready to meet the challenges head on.”
