The report reveals that the industry has reached a’ tipping point’ as PropTech adoption hits a critical mass threshold. For the first time in five years since Altus Group began conducting this annual research, a majority of CRE leaders say they now fully recognize the disruptive impact of PropTech, illustrating the shift to an acknowledgement that many advanced technologies can potentially solve their current challenges.
PropTech is part of the digital transformation in the property industry. The paradigm looks at both the technological and cultural change of the real estate industry, and how these impact upon the movements and transactions involving buildings and cities.
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Some key findings from the Altus Group research is with CRE executives, who are seeing the disruptive impact of online marketplaces, which are gaining traction and are here to stay. With this dynamic, 61 percent of CRE executives said online marketplaces will create major disruptive impact on the industry, and the majority of CRE firms have used some type of online marketplace (this includes online lending, online investment and crowdfunding, online leasing and online property exchanges) for a recent transaction and 79% intend to increase use in the future.
In addition, CRE executives have mixed views on the opportunity and impact automation will have on jobs in the industr. In relation to this, 75 percent of CRE leaders said the impact of automation will eliminate jobs however a majority also believe automation presents an opportunity to introduce new types of jobs within the industry (71 percent) and shift jobs towards higher value-add tasks (67 percent).
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The research also indicates that the challenge of data usability is hindering productivity, but executive sponsorship has now become a priority. With this, 8 out of 10 CRE firms now have a Chief Data Officer or equivalent senior executive who oversees their organization’s data strategy and data governance, compared to only 44 percent four years ago. Additionally, almost half (45 percent) of CRE teams are spending 15 percent to over 25 percent of their time managing and organizing data.
In a majority of key areas related to data management, CRE executives are facing increased challenges when compared to five years ago. Here, 89 percent of CRE executives said significant consolidation is needed for PropTech to more effectively deliver on the needs of the CRE industry, almost half (43 percent) indicating it is already underway or will occur within 12 months
