March 26, 2024 11:15AM

How AI & Big Data Are Forecasted as PropTech Game Changers

Staff Member Callum Board
Article by
Client Success Director
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Like so many other industries and sectors around the world, the property industry is changing rapidly. Every new technology that hits the market makes an impression, and at times it can feel difficult to predict what is going to come next. 

Industry leaders in both the real estate and property technology (PropTech) fields have indicated through a recent industry survey that they view artificial intelligence (AI), automation technologies, and big data as the major game changers that will disrupt and change the property industry in the next three to five years. In fact, the results indicated that more than 78% of industry leaders in real estate are looking to adopt AI tools in the next few years, if they have not done so already. 

The Tech & Innovation Survey 2024

This survey was conducted by the UK PropTech Association (UKPA) and the British Property Federation (BPF) and supported by REdirect Consulting, a leading real estate property technology consultancy. The survey follows the recent merger of the UKPA and BPF (BPF-UKPA), and its goal was to highlight the views of industry leaders across the sector and to make informed predictions about what the next few years are likely to hold for this dynamic industry. 

The UKPA is a not-for-profit membership organisation that aims to drive the digital transformation of the property industry in the UK by promoting engagement between PropTech and property businesses, allowing PropTech innovation to thrive. 

The BPF is the membership organisation for, and the voice of, the UK’s real estate industry. It works with government and regulatory bodies to represent and promote the interests of all those with a stake in real estate in the UK, from owners and developers to funders (equity and debt), agents, and advisers.

The survey respondents comprised real estate professionals and industry leaders in PropTech from across the UK.

The Tech & Innovation Survey 2024 Results

This survey yielded a number of interesting insights into the current state of the UK’s property and PropTech industries as well as developments that these sectors are likely to face in the next few years. In this section, we will share some of the most intriguing results along with our commentary on what we believe they mean for our industry’s present and future. 

Technological Innovation and Buy-In 

Almost universally, survey respondents reported anticipation that cutting-edge tools such as AI will revolutionise how property is developed, managed, and experienced in the UK and across the world in the near future.

When asked about environmental, social, and governance (ESG) goals, 82% of respondents said that they believe technology is the key to reaching them. A similar number of respondents stated that their organisations already have a digital or technology strategy in place covering at least part of their business operations. 

In addition, most organisations reported that ownership for driving technological innovation sits with their senior leadership teams. This strongly indicates that the property sector is already thinking strategically about the opportunities for these exciting new technologies to enhance their performance and drive their business goals forward in the next few years. 

Key Challenges: Fragmentation, Stalling Sales, and Managing Legacy Systems 

The survey also revealed many common challenges and concerns that are currently being shared by businesses across the property and PropTech sectors. For the PropTech industry in the UK, the survey data reveals that technology providers are grappling with the fragmented nature of the property industry (53%), struggling to achieve enough sales to grow their businesses (38%), and encountering difficulties in dealing with legacy systems and processes (36%).

These results reveal that technology and innovation are front of mind for almost all organisations in our industry. And, with C-suite executives and senior leadership teams taking the lead in the adoption and use of new technologies, they will continue to play a crucial role in these businesses’ wider strategies for growth and success in the coming years. An increase in tech innovation and investment in the coming years will be critical for organisations that want to survive and thrive in these challenging times. 

The UKPA’s newly launching Tech & Innovation programme will play a pivotal role in supporting individuals and organisations in our industry to navigate digital transformation. With plans to support more than 30 events per year, this programme will aim to break down some of the key barriers that have been identified, creating an environment for closer engagement between PropTech and property professionals at all levels. The programme will be critical to driving digital transformation and creating a culture of innovation within the UK’s real estate sector. 

Learn More and Get a Head Start on Your PropTech Journey With REdirect Consulting

Technological investment in the real estate industry has seen a significant rise over the past 12 months and, as these survey results show, we can expect more property companies to adopt new technologies to increase productivity and reduce inefficiencies in the coming months and years.

Here at REdirect Consulting, we have extensive experience in supporting real estate businesses of all sizes on their PropTech journeys, and we would love your organisation to be our next success story. From assessing your needs and choosing the right technological solutions to implementation, employee training, going live, and beyond, we are here to support you every step of the way.

If you would like to learn more and get a head start to stay ahead of the curve and ahead of your competition in these challenging times, please contact us today to get started. 

Read the full survey and results here

  1.  Big Data: the kinds of vast and often complex data sets that are too large to be managed with traditional data processing techniques, but which can be tremendously valuable to businesses if harnessed and utilised correctly.
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About the Author

Callum Board

Callum joins the REdirect team from Capital and Regional, a U.K. based Real Estate Invest Trust, where he was Head of Diversified Income. In his role he defined and led the diversified income strategy for Capital & Regionals portfolio of mixed-use assets, empowering a team of national Sales Executives to deliver sustainable income growth by …

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