PropTech 3.0: the future of real estate

Baum, Andrew (2017) PropTech 3.0: the future of real estate. Other. University of Oxford.

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Abstract

Right now, thousands of extremely clever people backed by billions of dollars of often expert investment are working very hard to change the way real estate is traded, used and operated. It would be surprising, to say the least, if this burst of activity – let’s call it PropTech 2.0 - does not lead to some significant change. No doubt many PropTech firms will fail and a lot of money will be lost, but there will be some very successful survivors who will in time have a radical impact on what has been a slow-moving, conservative industry. How, and where, will this happen?

Underlying this huge capitalist and social endeavour is a clash of generations. Many of the startups are driven by, and aimed at, millennials, but they often look to babyboomers for money - and sometimes for advice.

PropTech 2.0 is also engineering a much-needed boost to property market diversity. Unlike many traditional real estate businesses, PropTech is attracting a diversified pool of talent that has representation from different regions of the world and entrepreneurs from a highly diverse career and education background. Given the difference in background between the establishment and the drivers of the PropTech wave, it is not surprising that there is some disagreement about the level of disruption that PropTech 2.0 will create.

In this research we interviewed over 50 real estate professionals, entrepreneurs and capital providers. From one side, we heard that none of these startups know what they are doing and that young entrepreneurs misguidedly regard real estate as a sure thing. From the other, we heard that real estate people are not good at strategy and are determined to protect inefficient fee-earning practices.

2017 seems to mark a turning point. PropTech 2.0 has been building such mass and momentum that it will change the world. But real estate is a slow moving asset class, and the real estate industry is highly conservative. How will this play out?

This, the Said Business School Oxford’s first real estate research report, maps this emerging sector and focusses in particular on the impact of tech change on the character of this enormous asset class.

Item Type: Monograph (Other)
Keywords: Real Estate, Fintech, Finance
Subject(s): Finance
Date Deposited: 22 Aug 2017 09:02
Last Modified: 23 Aug 2017 07:58
URI: http://eureka.sbs.ox.ac.uk/id/eprint/6485

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