Technology “like a fork”. How PropTech shapes real estate innovation

The document titled "Technology ‘like a fork’. How PropTech shapes real estate innovation" is a research paper published by Emerald Publishing, authored by Chiara Tagliaro, Alice Paola Pomé, Alessandra Migliore from Politecnico di Milano, and Vitalija Danivska from Delft University of Technology. The research aims to advance the understanding of PropTech and its implications for the real estate sector.

The study investigates what the real estate sector needs from technology while closely observing PropTech businesses in Finland and Italy. It employs a mixed-method approach, combining qualitative interviews with PropTech players and quantitative data on the PropTech ecosystems in both countries. The analysis aims to highlight how digital technologies can enhance the real estate sector through improved data integration, informed decision-making, and innovative problem-solving.

The research identifies several benefits introduced by PropTech, including enhanced data integration, adaptability of technologies, and the emergence of new professional roles. These benefits are particularly evident when technology fosters innovation through interactions across various sectors, moving beyond traditional property-technology relationships.

The real estate industry is evolving, requiring a shift from vertical skills to a more digital and interdisciplinary approach. Interviewees noted the importance of data management and integration from various sources, emphasizing that data science is crucial for informed decision-making. A balance between traditional practices and new technologies is also necessary to ensure smooth transitions during digital transformation.

Digital technology is viewed as a tool that enhances human capabilities rather than a substitute for them. The interviews indicate that technology should facilitate access to information, increase transparency, and improve stakeholder interactions. The role of technology is to optimize workflow, reduce costs, and support sustainability efforts within the real estate sector.

The study finds that both Finland and Italy have distinct PropTech landscapes, with Finland exhibiting a higher concentration of PropTech companies per capita. In Finland, 19 companies per million inhabitants are involved in PropTech, while Italy has only 0.7. This difference reflects varying capabilities in innovation and startup culture between the two countries.

The research categorizes PropTech firms based on their activities, revealing that many operate beyond traditional real estate sectors. Companies are involved in diverse areas such as information technology, engineering, and professional services. This diversification indicates that PropTech is not limited to technology integration within real estate but encompasses broader economic impacts.

The paper highlights the challenges in categorizing and assessing PropTech innovations due to inconsistent definitions across countries. Future studies should aim to define PropTech more clearly and investigate its socio-economic impacts. Emphasizing the collaborative nature of innovation, the research calls for a balanced focus on technology and value creation to meet the evolving needs of the real estate sector.

In conclusion, the research underscores that PropTech plays a pivotal role in reshaping the real estate landscape by facilitating data-driven decision-making and fostering cross-sector innovations. The need for interdisciplinary collaboration and adaptability in business models is critical as the industry navigates through digital transformation challenges.