Guests: Neal Gemassmer, Vice President at Yardi and Raees Chowdhury, Investor at Revolt Ventures
The residential market is still in its infancy when it comes to fully embracing tech, but momentum to harness its power to change the status quo is increasingly rapidly. A panel of experts joined Blackstock’s founder Andrew Teacher for a RESIcast on this topic in the lead up to the Property Week RESI Conference 2020.
Proptech’s potential to transform the residential market is tremendous, but convincing companies of its value still remains a significant barrier to widespread adoption, a panel of experts told Property Week in the latest RESIcast.
Europe is currently lagging behind the US in fully embracing proptech. For example, American firms like online home sales platform Opendoor — notable for its enterprise value having soared recently to an eye-watering $4.8bn — are dominating headlines now.
But Europe is likely to see similar companies and valuations sooner rather than later, according to Raees Chowdhury, investor at venture capital firm Revolt Ventures.
Chowdhury remarks: “We are already starting to see early examples of this in Europe. Finnish home selling platform Kodit.io, for example, is a great example of a US concept that can also be applied very well to Europe. IMMO based in Germany and the UK is another.”
In terms of specifics where proptech can have the greatest impact, lettings and management is one area where technology can play a pivotal role in transforming residential, according to Chowdhury.
However one barrier to proptech’s adoption across the wider industry is educating companies of its worth.
“I think the challenge with proptech overall is to be able to understand what the value is that a certain app provides back to the group and how it fits into their overall structure,” Neal Gemassmer, our vice president, based in the Netherlands, argues.
“Many organisations will use multiple different systems, whether it’s a separate system for accounting, a different system for facilities management, a different system for engaging with their customers, a different system for leasing property management, a different system for screening, a different system for payments — all of this then becomes challenging and more onerous for organisations to connect to each other.”
But ultimately the drive to keep up and future proof businesses in a rapidly changing world will ease that transition.
Read the full article on Property Week.