This study, carried out by ESCP and sponsored by the Government of Monaco, aims to bring digital technology to the development of the real estate sector in Monaco.
What is PropTech?
IMMO2 gives a very clear definition of this digital phenomenon:
"PropTech is a collective term that is used for startups that provide innovative technological products or new models for the real estate markets."
These are therefore young companies that provide digital solutions to real estate market players, taking into account new consumption patterns.
Real estate technology first targeted consumers following the dot-com boom. At a time when most sales and residential listings were on print media and real estate offices, the focus was on moving listings onto the digital media. This has been successful, with companies like Zillow (US) and Rightmove (UK) being in the top listed companies in their respective markets.
The next wave (circa. 2008) involved making physical spaces more fungible - from holiday homes all the way to storage spaces. A notable example is Airbnb, which has made it possible for property owners to rent out their property for part of the year.
The current wave of PropTech is driven by a range of new technologies available, such as artificial intelligence and big data, which has already disrupted other areas such as finance. The application of these new technologies is furthermore shaped by social distancing requirements and regional lockdowns arising out of COVID-19 that have introduced changes in the way we are required to deal with real estate.
A special exhibition dedicated to PropTech - RENT (Real Estate & New Tech) took place on 20-21 October in Paris where different innovative and technological solutions were presented.
PropTech is still a young trend that has time to define its perimeter and given the many sectors that have become "uber", real estate and more specifically PropTech is becoming interesting for investors. Since 2014 there has been a strong growth in the number of fundraisings by these PropTech start-ups. The first unicorn - Compass - was followed by HomeLink and SMS assist. These 3 companies are different - property broker networks or a property management platform - all businesses are targeted. With Covid new players are coming in for coworking, coliving, crowdfunding, home exchange etc.
The ESCP study divides PropTech into three categories.
- Access to information through more easily and cheaply available comprehensive data
- Increased transaction efficiency through, for example, virtual signature platforms or tools
- Management and control with mobile phones, or other increasingly sophisticated technological devices, which now serve as a dashboard for property management.
Real estate - a traditional field - is undergoing an evolution that affects all of us because "we are all customers of this industry and will all, directly or indirectly, be affected by the changes that are taking place."
(Source: https://extendedmonaco.com/project/un-barometre-proptech-en-collaboration-avec-escp-business-school/)