Making the Most of Information to Make Better Decisions
‘In the UK,’ states Stephanie McMahon, Head of Research at BNP Paribas Real Estate UK, ‘PropTech is predominantly focused on information, transactions and management. It captures and organises a wealth of information to best serve the needs of all stakeholders in the property sector.’ Its aim is to improve productivity and therefore the profitability of any given real estate space. Jason Beedell, Research Director at Strutt and Parker, working specifically with the company’s farm management team gives one example: ‘Farmers can use technology to decide what to plant, where and how to manage crops, helping to make profit from their land’.
Uptake and Support of PropTech
‘The residential segment is most active in the UK,’ Stephanie continues, with 58%* of all PropTech. Portals and online agents like Zoopla and Purple Bricks which point consumers to their ideal property. In the commercial segment, providers such as Yardi and Argus manage data and flow between occupants, agents and owners. And yet, farming is a good example of how not everyone is benefitting from PropTech. ‘The top 25% of farmers use different kinds of innovation for soil and crop assessment, creating financial gains for them,’ explains Jason. ‘But the bottom 25% are much less engaged and the difference in productivity and income is over 100%. Happily, the UK government has stated in the last year its desire to invest in Agritech (a subset of PropTech) R&D to increase farm productivity at a lower environmental impact. Their support is crucial.’
In the UK PropTech is predominantly focused on information, transactions and management. It captures and organises a wealth of information to best serve the needs of all stakeholders in the property sector
Smarter Cities, Farms and People
Stephanie and Jason are both optimistic about the future. ‘How people use space, unstructured data and predictive analytics are huge growth areas that will benefit real estate investors, developers and occupiers and help make transactions more transparent,’ says Stephanie. ‘So many technological options are becoming available that a wide range of businesses can use, to improve their offer, their service and their environmental impact,’ Jason summarises. ‘And a lot of new skill sets will be needed to maximise the benefit from them.’
Farmers can use technology to decide what to plant, where and how to manage crops, helping to make profit from their land
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