The digital revolution in the Real Estate sector

In recent years, the real estate sector has undergone an important evolution linked in particular to a process of digitisation and innovation. This transformation is known as "Proptech", a term that derives from the fusion of the words "property" and "technology".

A concept that involves both the technological change of the 'property' market and the evolution of consumer attitudes towards cities, neighbourhoods and buildings. A new philosophy, a different way of understanding the classic property market with reference to the relationships between stakeholders, builders, brokers and consumers, and its subject matter, i.e. buildings and more generally the cities of the future, which are stimulated by the ever-changing digital scenario.

Proptech also encompasses other districts close to it, in addition to the real estate market itself, the Proptech concept includes smart cities and buildings, the sharing economy applied to real estate, the housing industry (ConTech), finance, and retail. The Proptech model can also include co-working, which is reshaping the space sector for both office and residential buildings, or co-living, which offers new environments and a new way of living and experiencing the city to the residential market.?

These dynamics are prompting entrepreneurs and innovators to reflect on various aspects of the real estate sector hitherto overlooked. Until now real estate has remained one of the least flexible sectors that has rejected digitalisation and technological innovation in many ways, particularly in relation to the enjoyment of property, most of the time it is still managed in the classic way, i.e. with the intervention of the real estate agency. Things have now changed to such an extent that thanks to the trust placed in technology, people can initiate and conclude a lease on an app or a website, without the negotiating parties having to meet.

However, Proptech doesn't stop there; another area affected by the real estate's digitalisation is certainly also the one related to new constructions; building companies are in fact not immune to the entry of Proptech and they too will have to review their logistics format in a technological key. Technology is, therefore, giving a new boost to real estate.?

It's easy to understand how in such a scenario, the real estate sector, which for a while went through a violent crisis phase, is once again becoming an attractive business for investors globally.

What benefits does the digitisation of real estate bring? The increase in transactions related to the real estate's sale and rental on an international level for example, or the maps' modernisation, but also the geolocalisation of a building allows a precise analysis of a property's location and enables interested parties to obtain benefits in a more targeted way.

Big data applied to the real estate sector, on the other hand, allows to profile the consumers, by better analysing their habits and tastes, thus enabling real estate companies to make the best decisions and adopt winning strategies in order to provide the best response that meets the consumer's expectation.

Proptech, therefore, is set to radically change the face of all players operating in the real estate sector, provided that they are able to understand the technological potential and take advantage of the opportunities that this new trend is creating.

And for our part, how have we analysed and what potential did we see at the dawn of this trend? We worked on a new product's development, implementing special technologies for property management. Thanks to our specialised in-house team, we have responded to the emerging social needs with new innovative solutions, one of all, the City Pop concept and its app, created specifically for micro-living, but now replicable and applicable also to the traditional residential or office sector.