RETech Futures Report 2016 - Squarespace

Emerging Trends in Real Estate Tech. RE:Tech ... 2016 Futures Report ... business conditions are “good” decreased by nearly 12.5 percent since May 2014.
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RE:Tech Emerging Trends

2016 Futures Report Emerging Trends in Real Estate Tech

RE:Tech › Futures Report

Index

Executive Summary Real Estate Technology Consumer Confidence Index › RETCI Average › RETCI Residential v Commercial Real Estate

Emerging Trends in Real Estate + Tech › Tech is Taking a More - Active Role in Enhancing Brokerage Endeavors › Digitalized Things Are Making Assisted Leasing & Sales Decisions › Renovating the Tenant Experience Is a Digital Priority

Emerging Trends in Real Estate Tech

RE:Tech › Futures Report

Executive Summary Real estate has gone beyond the digital tipping point. The sector is gathering momentum towards rapid and wide scale transformation, driven by both real estate tech disruptors and a responding wave of innovation investment with both residential and commercial brokerage firms.

The challenge for real estate is to understand the technologies that are reshaping and will continue to reshape the future and how to strategically invest towards the future. The way residential and commercial brokerages think about management of the built environment is already changing dramatically. Residential and commercial brokerage services are also empowering themselves with technology, allowing them to work more effectively and deviate from traditional working hours and practices. In response to increasing opportunities and threats posed by emerging technologies and competition, real estate companies, including brokerage firms are spending a high proportion of their IT and media budgets on new investment. Since 2014, JLL, Cushman and Wakefield, and CBRE have all redesigned their web and mobile presence along with investing in tech focused programs.

At the same time, real estate tech entrepreneurs are disrupting the market with new products, capturing the hearts and minds of early-adopter consumers and partnering with high-powered real estate services players. Real estate tech enterprises think and act differently to traditional financial services businesses; technology focus and the ability to work outside traditional boundaries makes them super agile. To leverage future technologies effectively and competitively, real estate firms need to decide where they intend to differentiate. This differentiation strategy will create a paradigm to define investment. When this direction is in place, real estate firms will understand their own technology adoption horizon. Currently, real estate firms are pursuing competitive advantage through three paradigms: • • •

Enhancing and extending enterprise efficiency through technological transformation Improving customer propositions for greater revenue Changing culture by providing resources to increase performance

Once the strategic roadmap is in place, real estate firms have a wealth of new technologies to consider…

Emerging Trends in Real Estate Tech

RE:Tech › Futures Report

Real Estate Technology Consumer Confidence Index

The RE:Tech Consumer Confidence Index (RETCI) is an indicator designed to measure consumer confidence, which is defined as the degree of optimism on the state of the real estate technology economy that real estate professionals (consumer) are expressing through their activities. The Average RETCI increased by nearly 7.25 percent in 2015 on a seasonally adjusted basis and overall real estate consumer sentiment from real estate professionals. According to the Real Estate Average Power Trend Index (REAPTI), since May 2014, the index decreased by nearly 11.8 percent. The Average RETCI is expected to moderately decrease by nearly 7 percent to nearly 70 percent in Q1 2016 according to the RE:Tech Futures RETCI Index. The indexes for residential real estate demonstrated erratic movement since May 2014, while commercial real estate remained more moderate. The commercial real estate index, which overall remained stable in 2015, overall decreased by nea