Skip to main content

Digital Transformation for Real Estate Market Segments

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.

Popular posts from this blog

Digital Solutions for Industrial & Manufacturing Firms

Executive leaders of fast-moving consumer goods (FMCG) are seeking guidance on how to apply new business technology in their manufacturing operations. CIOs and CTOs are tasked with gaining insight into the best solutions for digital transformation. ABI Research evaluated the impact politics, regulation, the economy, supply chain, ESG, and technology are having on FMCG, pharma, producers of steel, chemicals, pulp and paper -- as well as the mining and oil & gas sectors. Digital Transformation Market Development "Our assessment found that the FMCG sector is under pressure from all sides," says Michael Larner, industrial & manufacturing research director at ABI Research . Securing raw materials is challenging considering lockdowns in China and limited grain supplies from Ukraine. Supply shocks are raising input costs, and operating costs are rising with higher energy costs coupled with the pressure to pay higher wages and work sustainably. "We all hoped that with th

5G Fixed Wireless Access Revenue to Reach $24B

Available Internet access at an affordable cost is essential for everyone to participate in the Global Networked Economy. The deployment of fifth-generation (5G) wireless communications infrastructure is enabling the introduction of lower-cost broadband services in some markets. Fixed Wireless Access (FWA) allows mobile network operators (MNO) to deliver high-speed Internet connections in areas that have either insufficient or no prior wireline broadband access services. It's also used in urban, suburban, and rural areas where fiber optic communication is considered too expensive to install and maintain. With this new technology, MNOs have the potential to provide broadband capability at similar levels to fiber optic networks. Fixed Wireless Access Market Development Therefore, FWA can be used to supplement existing wired broadband Internet service offerings, provide additional broadband capacity, or act as a backup service for home or business applications. Although FWA is well es

Why the C-Suite Craves Digital App Acceleration

Business model evolution and growth are still top priorities for forward-thinking leadership. In fact, 70 percent of surveyed boards of directors will accelerate digital business initiatives, steering the organization to digitally-enabled growth. Chief Financial Officers (CFOs) also plan to protect their digital transformation investments as they cut costs elsewhere in their operations, according to the latest market study by Gartner. Among technology priorities, CFOs have particularly prioritized back-office business automation technology as a key to driving down costs in the face of ongoing inflation and supply chain challenges. Digital Applications Market Development A survey of CFOs found that digital business app acceleration was the top spending priority over the next 12 months, with 98 percent of respondents saying they will protect digital investments. Meanwhile, 66 percent of surveyed CFOs said they plan to increase their digital app investments. A separate survey of CEOs high