With augmented and virtual reality now commonplace and the viewing clarity in 3D visuals increasingly expected, the real estate industry has reached the point where embracing the digital era is no longer an option
Chris Cilliers, chief executive and principal for Lew Geffen Sotheby’s International Realty in the Winelands, says: “Industry players have been well aware of the new opportunities and potential benefits of proptech products for some time but uptake has been slower than anticipated for a number of reasons, including the fact that it’s a broad industry and not all sectors have responded equally.
“And, other than the advent of online marketing there has been very little change in the real estate sector for almost 30 years and proptech could potentially initiate transformations at every level. However, progress can also be a sharp double-edged sword because such dramatic change in any industry can pose a very real threat to existing business models.”
Cilliers was therefore wary of jumping on the bandwagon too soon but was also aware that the deeply-ingrained estate-agent led business model is teetering and, with the property industry ripe for disruption, the industry can no longer shy away from fundamental technological innovations.
“We introduced 3D mapping at the end of last year, offering the service to our sole mandate clients at no extra charge and the response has been very positive from both agents and clients.”
Wayne Berger, Managing Director of iShack Ventures, a Venture Builder mandated to develop disruptive technologies in the Property industry, FinTech and Big Data. says that timing is the single most critical factor when introducing new concepts or bringing unique products to market.
“Unfortunately, there isn’t a one-size-fits-all blueprint as no two markets are alike, but the inescapable truth is that the risk of failure is exponentially higher if the marketplace isn’t ready for your product or new services. However, the flip side of the coin is that once new innovations have embraced, those who haven’t kept pace are likely to fall by the wayside.”
He believes that the real estate industry is fast reaching the tipping point.
“Until very recently, digital technology was predominantly used to improve search and viewing capabilities, allowing consumers to refine their search parameters and to view properties in more detail than ever before but the latest advances are poised to revolutionise the entire industry.
“We are currently testing artificial intelligence (AI) real estate service bots and on the commercial leasing side this technology is already being utilised to match clients to the best available retail, office or industrial space to suit their needs. In smartbuilding, we now use blockchain technology to store and safe guard important building related documents like architectural drawings and title deeds and it’s also being trialed in several African regions to be a land registrar.”
Cilliers says that cutting edge products like Matterport offer far more than just viewing clarity with benefits like links to the latest Google maps, they can present agents with unexpected challenges - like diplomatically telling sellers their homes are too messy to scan.
“Virtual tours afford potential buyers a true sense of a home and allow them to inspect every nook and cranny before setting foot on the property, but they are therefore far less forgiving than photographs which can be photoshopped or even omitted if a specific area is less than attractive so it is essential that the home is not only neat and presentable, but also preferably staged.
Cilliers concludes: “Real change in the industry is finally beginning as the potential for large scale improvements becomes increasingly apparent so it’s very likely that we will see a far higher rate of proptech innovation during the next decade with a growing gap between real estate companies who learn to adapt to the rapid changes physical and and those that choose to stay in the dark.
