How can real estate get future ready?
Despite widespread adoption in other industries, emerging technologies like 3D printing, augmented reality and drones remain a source of scepticism among property leaders, reveals a new report from Altus Group.
Altus Group’s Real Estate Development Trends Report unpacks the findings from a global survey of more than 400 property development leaders, with the survey conducted by international research firm IDC.
“When it comes to emerging technologies and disruptive forces, the development industry appears to be polarised,” says Niall McSweeney, Altus Group’s senior director for the Asia Pacific region.
“Some leaders are anticipating change through future-ready strategies. But others do not appear to be prepared for the change on the horizon. And those businesses face higher risks.”
For example, per cent of global respondents said transportation technology, such as autonomous vehicles, would have no impact on their development pipeline.
The top three most “disruptive” technologies nominated by survey respondents were smart building technologies, pre-fabrication and building information modelling.
“These technologies and processes are well-established in other industries, such as manufacturing, but are still seen as disruptive in the real estate sector. The survey results suggest the property development firms are focused on the near-term, rather than looking further ahead on the horizon,” McSweeney explains.
Meanwhile, other potentially game-changing technologies are still viewed with scepticism. Sixty-five per cent of global respondents believe that 3D printing will have minimal to no impact on the development sector. Augmented and virtual reality were viewed with uncertainty by 45 per cent or respondents, while 36 per cent were doubtful about drones.
And despite the recent explosion in proptech, just 67 per cent of respondents are adopting or planning to adopt advanced construction technologies – which means a third of respondents are making no preparations for the proptech juggernaut.
Is this a missed opportunity?
“Having a future-ready strategy and being able to identify and react to changing conditions and trends is more important than ever in a rapidly evolving market to ensure development strategies are optimised and projects remain profitable,” McSweeney explains.
“It’s clear the industry is yet to fully embrace the potential of technology – but other industries are capturing huge efficiencies through automation, artificial intelligence and virtual reality. These technologies are not going away. Technology moves rapidly, and what can seem a long way off today may become mainstream over a very short period of time.”
The best way to manage risk is through better data, McSweeney adds.
“Property leaders are looking to smarter data and analytics to drive efficiencies and more profitable businesses.”
Altus Group is a leading provider of software, data solutions and independent advisory services to the global commercial real estate industry. Download the Real Estate Development Trends Report.