We live a constant digital evolution, where practically all sectors have suffered and from which there is no turning back. Companies that we adore as omniscient, immovable and indestructible totems have turned out that these deities were not immune to the fierce competition of evolution.
An example that ten years ago, the cover of the prestigious Forbes magazine, was dedicated to Nokia and prayed; "Nokia, 1.000 millions of customers, who dares with the telephone giant?" Ten years later, Nokia's ordeal and its loss of market share to ostracism is something we all know. In just a decade they went from a market share of 41% to only 0,4% in the past 2017. Its CEO, Stephen Elop, defined Nokia's decline in the following phrase "We did nothing wrong but we lost." Ten years later we might think that they were not agile enough to move from Cell Phone to Smart Phone, which is what the global market demanded and demanded.
For us the change that is coming is from Real Estate to Digital Real Estate. Our business, real estate, will not be an exception. Fifteen years ago and with the skepticism of many the Idealista website appeared in Spain, today nobody can think of buying or selling a house in Spain without going through Idealista, Fotocasa or similar, even if only to take the pulse of the market and have comparable prices. Such is the success of this real estate digitalization that we already have more than forty real estate portals, “Market Place” or “Peer to Peer” on the Spanish map of the Proptech and with almost two hundred technology companies dedicated to different areas of the real estate sector, figure It increases month by month.
But what are the Proptech? They are the new digital companies or Startups that with their technological component and their disruptive digital vision are transforming the real estate business.
But what are the Proptech? They are the new digital companies or Startups that with their technological component and their disruptive digital vision are transforming the real estate business. This new universe or ecosystem accommodates numerous companies or projects, which with their new business approach are transforming the real estate sector. Activities such as the sale, investment, marketing, management of real estate assets, data analysis "Big Data" or financing, practically each of the subsectors or specializations of Real Estate, have or will have their own 2.0 version or Proptech model.
The evolution of the real estate sector is not reduced to the well-known and already mentioned real estate sales portals, today and from the comfort of our sofa we can obtain an assessment of our house, sell it, visit a new property with virtual reality as if We were inside the house, even before it is finished, obviously we can buy it, we can follow the real-time evolution of the construction and choose the finishes through augmented reality. The entire real estate cycle of a sale is already available in the Proptech ecosystem, where you can even pay houses with Bitcoins or other cryptocurrencies.
These small and disruptive new companies, need to coexist and grow with the great giants of the sector.
But the Proptech, not only live by and for the finalist private user, but day by day they are expanding and sophisticated more by accessing all the targets of the sector.
Private real estate investors also have their place in this new market, there are platforms that allow through "Crowfunding" or collective financing that any citizen can access a market hitherto exclusive and restricted to large assets.
Professional investors, such as Investment Funds, Socimis, Insurers ... have an excellent opportunity in Proptech to increase the value of their assets and the attractiveness of their tenants, from data analysis to traction experiences with innovative projects such as Citibox ticket offices which serve to improve the online shopping experience by leaving your purchases in your same building without relying on third parties. There are many large owners who are already installing them in their buildings, thus offering their tenants an added value to the user experience.
Thanks to all these changes and a constant evolution, the digital transformation of a traditional market like real estate is already a reality. The application of technology by Proptech in this sector is offering answers in a shorter time, more efficiently and much more innovatively.
The collection and analysis of data "Big Data", is giving us the ability to identify the needs of the market, before the user knows them, this anticipation of the market, is turning many Proptech and their data into the new "ElDorado " Publications such as TheEconomist, this year have already highlighted on their covers that the most valuable resource in the world, is the "Big Data", who know how to analyze it and, above all, implement it, will have won the race of the digital revolution of the Real Estate.
These small and disruptive new companies, need to coexist and grow with the great giants of the sector, an exciting cycle to which we can apply the fable of the Deusto Business School of "The elephant and the gazelle who want to dance together." Where the gazelles are the emerging companies and the elephants the incumbent companies, and only thanks to a joint work, the former can innovate and be more competitive and the latter can achieve high levels of scalability. Having seen what was seen and quoting Alice in Wonderland, “We have to believe in impossible things more often. Only then will we be prepared for when they come true ”and real estate will not be the exception.