Communicating the benefits of PropTech
The UK’s built environment is undergoing a period of change; the way we interact with spaces and places has evolved enormously since the pandemic, but something else has changed too.
PropTech is set to be the ultimate disruptor.
According to a KPMG survey from earlier this year, global investment into the sector more than tripled from US$4.1bn to US$13.4bn between 2022 and 2023. That figure is expected to grow by the end of 2024.
It’s not just changing how we build; it’s revolutionizing the entire process, from design and construction through to sales and usage. PropTech is still misunderstood by many in the real estate industry, and for communications experts, brings challenges and opportunities to how we tell our stories. With PropTech embedded in our industry lexicon, and permeating every part of our sector, how do we get to grips with what future trends will be?
A recent report compiled by Metaprop and PwC gives an indicator. The ‘Global Proptech Confidence Index’ paints a picture of investor sentiment across the variety of PropTech platforms about where we might expect to see the most capital deployed.
Almost a third (31%) of PropTech investors are most interested in AEC (Architecture, Engineering & Construction) tech, driven by the need for digital tools that streamline construction. Sustainability, as you’d expect, features highly, with 25% of investments focused on energy-efficient solutions. While 17% goes toward smart buildings packed with IoT capabilities. Throw in space management and finance tech, and you’ve got a series of different areas which comms experts must get to grips with. And quickly.
Communicating the breadth of the PropTech sector is crucial. At present the industry definition of PropTech is broad and often misunderstood. A quick google search will unearth hundreds of not-so dictionary definitions. In order to communicate its value more accurately to the various stakeholders that will use it, we need to get back to basics.
What it really boils down to is data. Data and real estate are not unusual bedfellows. The bedrock of commercial (and residential) decision-making processes are founded on asset or location analysis. Where can I find the best returns? What is the weekend footfall of this scheme? And what are the average planning permission times in a given local authority.
The most exciting aspect to the PropTech revolution is not only how it will enable superior decision making, but how pairing up those datasets will help to create a more joined-up view of the built environment; from its environmental performance to how spaces are managed, with lots of other exciting developments too.
So – back to comms. How is this going to affect us? It’s two-fold. First up – we need to ensure that we are all PropTech literate. Without understanding the mechanics of the particular technology, we are in trouble. But secondary to that is the unrivalled opportunity to create compelling stories. We now have the chance to highlight how technology is reshaping the real estate landscape and position clients as leaders in innovation. Just as Artificial Intelligence (AI) continues to have an enormous impact on our day-to-day lives, PropTech is doing the same to our bricks and mortar.