Trends and Hot Topics

Report Highlights the Impact of Proptech in Real Estate

New York – The Urban Land Institute (ULI), in partnership with law firm Goodwin, has published a new report which shows how proptech is increasingly revolutionizing the real estate industry.

“Proptech: Changing the Way Real Estate is Done” consolidates and analyzes data collected from a survey of 200 ULI members from around the world who have direct involvement with their companies’ historical and recent adoption of proptech. Eighteen in-depth interviews were also conducted with senior real estate executives whose companies have adopted new technologies and are planning more.

Insights from the report include:

  • The vast majority of companies are already experiencing the powerful impact of technologies integrated across their businesses, with 80% of companies noting the positive impacts on operations and services, and 70% experiencing a positive impact on decision-making and finances.
  • Data Analyltics, Property Management and Portfolio Management are sectors benefitting from the highest impact of recently adopted new technology, with Capital Raising lagging thus far.
  • Interest is shifting dramatically to Data Analytics, Project Management and Climate Change, with companies indicating these will be key growth areas for their proptech adoption over the next three years.
  • The pace of proptech adoption is set to increase over the next three years, with the leading companies pursing multiple strategies to remain ahead of the curve, including direct investment in technology companies, investment in venture capital funds and in-house technology development.
  • Asked about goals in partnering with and/or investing in technology companies, 40% of companies are developing proprietary technology tools, 31% helping screen for high-impact new technologies, and 16% diversifying overall investment strategy.
  • Overall, only 15% of companies do not have plans for future investment and growth in technology adoption.