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New Tech that’s Remodeling Real Estate “CREATIVE DESTRUCTION” REFERS TO THE “PROCESS OF INDUSTRIAL MUTATION THAT INCESSANTLY REVOLUTIONIZES THE ECONOMIC STRUCTURE … INCESSANTLY DESTROYING THE OLD ONE, INCESSANTLY CREATING A NEW ONE.” THE EXPRESSION IS MOST READILY IDENTIFIED WITH JOSEPH SCHUMPETER (1883-1950) WHO POPULARIZED IT THROUGH HIS BOOK “CAPITALISM, SOCIALISM AND DEMOCRACY”
This impacts the entire value chain, from funding, to home purchases to subletting.
“Creative destruction” is what we are witnessing in today’s real estate world.
AUTONOMY/SELF-SUFFICIENCY: REFLECTED IN SITES SUCH AS SKYSCANNER.COM OR BOOKING.COM
A massive influx of private firms combined with decreased processing costs and new technologies eroded the monopolies held by established companies.
SKILLS & EXPERTISE: AS SEEN IN BIG DATA’S KNOWLEDGE SHARING
WHAT IS PROPTECH The word PropTech comes from the contraction of “property” and “technology.” It refers to tech startups and new technologies revolutionizing the real estate industry. There are plenty of innovative real estate hubs and the integration of tech opens up new horizons for them in a market that is constantly moving. THE WHOLE VALUE CHAIN
PROMPTNESS & RESPONSIVENESS: SUCH AS CHATBOTS AND PRICE-COMPARISON WEBSITES TRANSPARENCY: ACCESSIBILITY OF INFORMATION Thanks to innovative, well-funded, multipurpose platforms, customers are increasingly realizing the value that tech firms bring to traditional estate agencies. Furthermore, they are more open to paying fees as long as they get quality service in return. Conversely, due to the mediocre reputation of traditional agencies, customers are reluctant to pay for standard services.
Tech platforms are gaining ground, as seen in the purchasing process.
Nowadays, 90% of house-hunting is done online (nearly 750,000 monthly online viewings at Athome.lu). It is one of the first activities that quickly turned digital. Potential customers are armed with so much online information that fewer and fewer of them are calling estate agencies.
OCCUPATION MANAGEMENT Olivier Minaire
The real estate industry has turned a digital corner to meet the expectations of private individuals and professionals.
DIGITAL TECHNOLOGY HAS TRANSFORMED HABITS, SUCH AS CONSUMING, SELLING, RENTING OR BUYING (THROUGH AUGMENTED REALITY, ONLINE VIEWINGS, BIDDING ETC.), WHICH TRIGGERED NEW OPPORTUNITIES.
The transformation of traditional business models (“disruption”) by innovative startups has proved challenging to the real estate value chain.
HOW TECHNOLOGY HAS REVOLUTIONIZED THE TRADITIONAL MARKET
Customers have come to expect extensive online information about properties for sale. Ads featuring HD pictures (including layout, floor plans, etc.), videos (360°/Matterport or drone footage of existing constructions) and immersive viewing of off-plan properites (Cognityk Luxembourg) receive more requests for viewing and more bids, resulting in quicker sales.
The Startup Magazine