Big data, artificial intelligence and business process automation may be buzzwords, but property companies should start with small data, says Yardi’s regional director Bernie Devine.
Ahead of the launch of the latest Yardi/Property Council proptech survey on 22 February, Devine has some interesting insights into the companion survey of Asian real estate companies.
Yardi teamed up with research and news company Mingtiandi in2017 to track changing attitudes to proptech. Since then, the research has captured the accelerated adoption of technology to guide data-driven decision-making, transform business processes and enhance the human experience.
“We can see that pockets of the real estate industry remain stubbornly resistant to change, and some leaders continue to rely on ‘gut feel’ to make decisions,” Devine says.
The survey highlights a clear ‘digital divide’. For instance, nearly a third (32%) of survey respondents expect big data analytics to have the biggest impact on Asia’s real estate sector over the next five years. But a third (33%) are still using spreadsheets for accounting, benchmarking and performance analysis. Excel is remains popular for budgeting (26%), valuations (28%) and portfolio financing (46%).
Devine notes some companies are investing in technology and data at speed. “But there is also a propensity for property players to throw around the ‘big data’ buzzword, when they should be focused on getting their simple back-office functions in order.”
Why, when the data clearly shows a growing gap between the leaders and laggards, are some companies choosing not to invest?
“The simple truth is change is hard work. Resistance to change remains the biggest barrier to proptech adoption across the region, outstripping cost, resources, time or confidence.”
But the world has changed and real estate with it. Almost two-thirds (62%) of respondents noted a “significant” or “major” impact on plans for their workplaces following the pandemic, and 58 per cent observed the same level of impact on their portfolios.
“The overriding lesson from the COVID-19 crisis is that the world is now consistently inconsistent. Things can, and do, change overnight. Preparing for ongoing unpredictability requires new systems and processes.
“The pandemic has also given us a deeper understanding of the value of the technology, not just to help us ‘keep the lights on’, but also to meet the evolving needs of our customers.”
Devine suggests many companies across the Asia Pacific are now “playing catch-up with technology”, as 60 per cent of survey respondents expect to invest in business process automation over the next five years, and 58 per cent are pouring money into big data analytics.
“These companies are now operating from a simple principle: The best time to invest in technology may have been yesterday, but the next best time is today.”
Register to attend the virtual launch of the Yardi/Property Council Proptech Survey on 22 February.