Across a variety of industries, there is a growing integration of technology to automate manual transactions and make commercial processes more efficient. This digital business innovation has extended to many long-established areas of the economy such as logistics, insurance and regulation.
However, thus far, the traditional commercial and residential real estate sectors have experienced minimal digital transformation. That's likely to change, according to the latest market study by Juniper Research which has found that revenues generated by property technology (Proptech) rental platforms will reach $6.5 billion by 2023 -- that's up from an estimated $290 million in 2018.
Proptech Market Development
Proptech refers to technology applications used to transform the legacy practices.
Contrary to progress in other sectors, the property and real estate industries were held back by the incumbent's slow rate of change and adoption. But now that there is increasing investment in the Proptech sector, disruption of the status quo will create a more efficient and agile property landscape.
According to the new research findings, online rental platforms such as Flip and Avail are rapidly gaining traction in the rental market, by enabling landlords and tenants alike to address the prior high costs and complicated agent processes.
These solutions, by incorporating a superior online listing, legal and payment service, will propel the total number of Proptech-facilitated home rentals to 22 million by 2023 --that's up from 3.6 million in 2018. This momentum will force legacy real estate agents to adopt online-focused business models.
The research found that e-commerce conveyancing platforms, which take complicated legal processes and streamline them using simple online platforms, will deliver annual consumer savings of $1.5 billion by 2023, as well as eliminating a large cause of frustration.
"The rise of online conveyancing platforms is a wake-up call to the wider conveyancing industry, which must work to reduce costs and customer frustration. If it fails to do this, it will become increasingly bypassed by newer, more technically adept players," said Nick Maynard, research analyst at Juniper Research.
Outlook for Increased Proptech Market Growth
Juniper also found that commercial property utilization is being reimagined via Proptech solutions, with office-sharing vendors such as WeWork growing rapidly. This growth will lead to total annual platform revenues for shared office space companies of over $13 billion by 2023.
Platform vendors in this space are, however, taking large risks, by securing long-term leases within expensive commercial real estate markets. Juniper recommends that vendors minimize lease length to reduce future risks in a highly cyclical space, such as economic uncertainty or weak demand.
However, thus far, the traditional commercial and residential real estate sectors have experienced minimal digital transformation. That's likely to change, according to the latest market study by Juniper Research which has found that revenues generated by property technology (Proptech) rental platforms will reach $6.5 billion by 2023 -- that's up from an estimated $290 million in 2018.
Proptech Market Development
Proptech refers to technology applications used to transform the legacy practices.
Contrary to progress in other sectors, the property and real estate industries were held back by the incumbent's slow rate of change and adoption. But now that there is increasing investment in the Proptech sector, disruption of the status quo will create a more efficient and agile property landscape.
According to the new research findings, online rental platforms such as Flip and Avail are rapidly gaining traction in the rental market, by enabling landlords and tenants alike to address the prior high costs and complicated agent processes.
These solutions, by incorporating a superior online listing, legal and payment service, will propel the total number of Proptech-facilitated home rentals to 22 million by 2023 --that's up from 3.6 million in 2018. This momentum will force legacy real estate agents to adopt online-focused business models.
The research found that e-commerce conveyancing platforms, which take complicated legal processes and streamline them using simple online platforms, will deliver annual consumer savings of $1.5 billion by 2023, as well as eliminating a large cause of frustration.
"The rise of online conveyancing platforms is a wake-up call to the wider conveyancing industry, which must work to reduce costs and customer frustration. If it fails to do this, it will become increasingly bypassed by newer, more technically adept players," said Nick Maynard, research analyst at Juniper Research.
Outlook for Increased Proptech Market Growth
Juniper also found that commercial property utilization is being reimagined via Proptech solutions, with office-sharing vendors such as WeWork growing rapidly. This growth will lead to total annual platform revenues for shared office space companies of over $13 billion by 2023.
Platform vendors in this space are, however, taking large risks, by securing long-term leases within expensive commercial real estate markets. Juniper recommends that vendors minimize lease length to reduce future risks in a highly cyclical space, such as economic uncertainty or weak demand.