Digitalization in Real Estate

Peter Sittler

29th June 2017

European Real Estate Society (ERES) ConferenceDelft, Netherlands

D E PA R T M E N T O F R E A L E S TAT E M A N A G E M E N T

F H W I E N O F W K W U N I V E R S I T Y O F A P P L I E D S C I E N C E S

digitization vs. digitalization

D E P A R T M E N T O F R E A L E S T A T E M A N A G E M E N T – F H W I E N O F W K W U N I V E R S I T Y O F A P P L I E D S C I E N C E S2

Google Trends, https://trends.google.at/trends/explore?q=digitization,digitalization [20.07.2017]

digitization

digitalization

digitization

“the action or process of digitizing; the

conversion of analogue data into digital form”

digitalization

“the adoption or increase in use of digital or

computer technology by an organization,

industry, country, etc.”

Brennen/Kreiss 2014

What means digitalization?

D E P A R T M E N T O F R E A L E S T A T E M A N A G E M E N T – F H W I E N O F W K W U N I V E R S I T Y O F A P P L I E D S C I E N C E S3

“Digitalization means changing business models by improving business

processes due to the use of information and communication technologies”

Deloitte 2013, p. 8

“Digitalization in the real estate sector can be viewed from a variety of

perspectives (...) Due to the relatively low data density of real estate

industry, as well as its rather small degree of digitalization, big data is less

important than a consequent improvement of the conventional data and its

processing. This means that the focus will be on the general perception of

the importance of digitalization, the quality and quantity of available data

as well as the effectiveness and efficiency of their use in management

decisions.”

Brusgul et al. 2014, p. 11

Digital Economy Society Index (DESI)

D E P A R T M E N T O F R E A L E S T A T E M A N A G E M E N T – F H W I E N O F W K W U N I V E R S I T Y O F A P P L I E D S C I E N C E S4

European Union 2017, p. 1

Research background/aim

► Several studies about digitalization (especially DACH region)

► Many buzz words concerning digitalization

► Finding trending topics/technologies for real estate

► Bringing all relevant topics together

► Presenting an overall survey

► Clustering for real estate sectors

► Writing a book „Digitalisierung in der Immobilienwirtschaft“

(English: „Digitalization in real estate industy“)

D E P A R T M E N T O F R E A L E S T A T E M A N A G E M E N T – F H W I E N O F W K W U N I V E R S I T Y O F A P P L I E D S C I E N C E S5

Methodology

TO COME UP…

► (Nearly) Complete PropTech List with each business model

► Analyze future business models and trends in real estate

Restrictions/Limitations

► New literature does always come up

► Fast development of technology

► Rapid changing of technology based companies

D E P A R T M E N T O F R E A L E S T A T E M A N A G E M E N T – F H W I E N O F W K W U N I V E R S I T Y O F A P P L I E D S C I E N C E S6

Literatureresearch

ClusteringRelevant

business models

Literature

D E P A R T M E N T O F R E A L E S T A T E M A N A G E M E N T – F H W I E N O F W K W U N I V E R S I T Y O F A P P L I E D S C I E N C E S7

Autor/s Title (short)

Bölting et al. 2016 Digitalisierung in der Immobilienwirtschaft

Brusgul et al. 2014 Digitalisierung in der Immobilienwirtschaft

Clark/Moonen 2015 Technology, Real Estate, and the Innovation Economy

Cook 2015 RICS futures: turning disruption from technology to opportunity

DDI 2016 DDIV-Digitalisierungsumfrage

DMK/FOG 2015 Digitale Transformation in der Wohnungswirtschaft

FTI/Future PropTech 2017 PropTech 2017

Hügel 2017 Innovationsbarometer der Immobilienwirtschaft 2017

IFI 2017 PropTech-Studie 2017

Just et al. 2015 IREBS InnoVation Monitor 2.0

KPMG 2016 SnapShot! on Digitalization. Real Estate Europe 2016

PwC/ULI 2015 Emerging Trends in Real Estate - A balancing act

PwC/ULI 2017 Emerging Trends in Real Estate - New market realities

Rauch/Pfeffer 2012 HEAG 2040 - Die Stadtwirtschaft von morgen

Rodeck et al. 2016 Einsatz digitaler Technologien in der Immobilienwirtschaft

Roland Berger 2016 Digitalisierung der Bauwirtschaft

Russo et al. 2016 Innovationsbarometer der Immobilienwirtschaft 2015/2016

Schmidiger 2016 Digitalisierungsbarometer

Staub et al. 2016 Digital Real Estate

Zeitner/Peyinghaus 2014 Prozess Management Real Estate Monitor 2014

Clustering Digital Real Estate

D E P A R T M E N T O F R E A L E S T A T E M A N A G E M E N T – F H W I E N O F W K W U N I V E R S I T Y O F A P P L I E D S C I E N C E S8

Changing of working environment

Smart Real Estate

Digital Real Estate

Marketing

Real Estate Management

Construction/Planning

Building/Facility Management

Valuation/Asset Management

New Business Models

Mobile Applications Big Data/Smart Data

Cloud Computing (Data) Security

Big Data/Smart Data

D E P A R T M E N T O F R E A L E S T A T E M A N A G E M E N T – F H W I E N O F W K W U N I V E R S I T Y O F A P P L I E D S C I E N C E S9

Topics of digital real estate

D E P A R T M E N T O F R E A L E S T A T E M A N A G E M E N T – F H W I E N O F W K W U N I V E R S I T Y O F A P P L I E D S C I E N C E S10

Trends of digital technologyin real estate

D E P A R T M E N T O F R E A L E S T A T E M A N A G E M E N T – F H W I E N O F W K W U N I V E R S I T Y O F A P P L I E D S C I E N C E S11

Mobility/Mobile devices

Plattforms an digital ecosystems

Cloud technology

Internet of things

Building Information Modeling (BIM)

Big Data/Data Mining

3D printer

Moving profiles

Augmented Reality and Visualization

Smart contracts

Blockchain technology

Roboter technology

Artificial intelligence

current to prospective (no information)

IFI 2017, p. 15 (n=260)

PropTech definition

D E P A R T M E N T O F R E A L E S T A T E M A N A G E M E N T – F H W I E N O F W K W U N I V E R S I T Y O F A P P L I E D S C I E N C E S12

“PropTech is made up of the terms

‘Property’ and ‘Technology’ and refers

to innovative companies that combine

the new technological possibilities

with the real estate sector using their

business models”

Catella 2016, p. 1

Beginning of PropTechs

D E P A R T M E N T O F R E A L E S T A T E M A N A G E M E N T – F H W I E N O F W K W U N I V E R S I T Y O F A P P L I E D S C I E N C E S13

Neinken 2015, p. 7

PropTech List 1

D E P A R T M E N T O F R E A L E S T A T E M A N A G E M E N T – F H W I E N O F W K W U N I V E R S I T Y O F A P P L I E D S C I E N C E S14

PropTech

List

Own research

PropTech List 2

► Name

► Country (DACH)

► Year of Founding

► Contact

► Webpage

► Corporate activity

► Business model

► Solution for

► Rating

► Category

D E P A R T M E N T O F R E A L E S T A T E M A N A G E M E N T – F H W I E N O F W K W U N I V E R S I T Y O F A P P L I E D S C I E N C E S15

PropTech List 3

D E P A R T M E N T O F R E A L E S T A T E M A N A G E M E N T – F H W I E N O F W K W U N I V E R S I T Y O F A P P L I E D S C I E N C E S16

Companies with known products or ser vices

D E P A R T M E N T O F R E A L E S T A T E M A N A G E M E N T – F H W I E N O F W K W U N I V E R S I T Y O F A P P L I E D S C I E N C E S17

IFI 2017, p. 7

Conclusions

► Digitalization has a growing importance in real estate industry

► PropTech sector is at the beginning

► Innovation, flexibility and communication is needed

► Not only new technologies are accelerating the digital disruption

► Ongoing changing of society and customer behaviour

► New business models are occuring

D E P A R T M E N T O F R E A L E S T A T E M A N A G E M E N T – F H W I E N O F W K W U N I V E R S I T Y O F A P P L I E D S C I E N C E S18

D E PA R T M E N T O F R E A L E S TAT E M A N A G E M E N T

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Peter Sittler

Endowed Chair of Real Estate

(founded by the city of Vienna/MA23)

peter.sittler@fh-wien.ac.at