The Digital Ecosystem Reshaping Real Estate
In its outlook of real estate technology trends, RE:Tech has identified a shift to what it calls the “We Economy” that is re-shaping markets and changing the way we live and work. According to the RE:Tech Midyear Future Insight Report, pioneering real estate technology companies are tapping into a more broad and global market, creating a new digital “ecosystems” lead by the curated economy.
These companies have transformed real estate into a digital business, and see great potential to make a difference – and a profit – by operating as ecosystems and driving the emergence of the “We Economy.”
RE:Tech Future Insight notes that by tapping into global-digital ecosystems, emerging real estate tech markets, such as China, India, and the Middle East, will have the ability to grow and generate new sources of revenue with little to no competition from U.S. or Western real estate tech companies.
- The Internet of Today: A Personalized Real Estate experience. As real estate becomes more mobile-web, so too are experiences. Similar to city based residential real estate leasing experience, the new world ecosystem is creating an abundance of digital channels that reach deep into every aspect of the real estate experience. Forward-thinking global companies are changing the way they build products and services platforms. To gain market entry, curated focused platforms are creating highly personalized experiences to engage and retain customers. The majority (60%) of the real estate tech companies are residential - leasing based companies.
- Global Economy: High Hopes for CRE. The US Commercial Real Estate (CRE) tech sector is a world wide leader in terms of deals and companies launched. Since 2010, their has been a 15 percent year-over-year growth in the number of US based CRE tech companies. Intelligent software and hardware based companies are bridging the gap between the digital enterprise and the physical world. In the global economy, leading companies have come face-to-face with the same opportunities. The software baed companies have been integrated with the digital toolbox of Internet of Things (IoT). Global CRE tech companies are uncovering opportunities to utilize highly connected hardware-software components to enhance the customers experience for both landlords, brokers, tenants, and everyone in between.