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Real estate today amid digital transformation
Indeed real estate is meant to be classified as a long-term investment, so organically, real estate adaptation tends to be slow. On the other hand, technology is changing. Therefore, it is necessary for real estate stakeholders to consider investment in technology to maintain sustainability in the era of disruption. #opinion
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Illustration of real estate. (Shutterstock/File)
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iscussing transformation means talking about change. The world is heavily influenced by change. This is shown by radical changes in various sectors, ranging from politics and economics to culture. Changes occurring nowadays are very much influenced and shaped by technology.
There are three reasons as to why the current transformation is not only a continuation of the Third Industrial Revolution but rather represents the presence of the Fourth Industrial Revolution, which indicates radical changes: velocity, scope and systems impact. When compared to the previous industrial revolution, the fourth had no historical precedent, developed at an exponential pace and with high volatility.
An Ernest and Young survey recently showed that 74 percent of participants from various industries responded that disruptive competition was the most significant challenge to be faced by the industry today, far above the concern of global economic uncertainty, which is only 16 percent.
The survey results clearly show that today’s industry is very attentive to the intense competition influenced by the role of digital technology.
The World Economic Forum predicts at least seven types of technologies will have the greatest impact on industrial sustainability: artificial intelligence, autonomous vehicle, big data analytics and cloud, custom manufacturing, internet of things (IoT), robots and drones and social media. Of the types above, the world of information technology has formed a new field called property technology, better known as PropTech.
PropTech is part of digital transformation that focuses on the real estate industry. PropTech contains the essence of change consisting of technology and consumer behavior toward the real estate industry. Some derivatives from PropTech are smart real estate and shared economy.
Smart real estate can be interpreted as real estate that supports technology platforms in its operational activities. Smart Real Estate focuses on three things: energy saving, management and maintenance with the IoT approach.
