Proptech: are we missing the boat? – The Property Chronicle
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Proptech: are we missing the boat?

Technology

Continuing our three-part series on proptech, a look at the innovation gap in real estate.

Following our walk down proptech’s memory lane last week, today we will look at the real estate industry’s innovation gap. This in turn will set the stage for evaluating the current and emerging proptech landscape in next week’s final piece.

So, how are we doing?

Compared with other industries, the real estate sector tends to be rather conservative, with a limited willingness to spend on R&D. This traditionalism is reflected in the following comparative graph for major European markets:

R&D expenditure (real estate vs other services) as a percentage of production

Source: ING Economic & Financial Analysis

This lack of innovation in turn hampers comparative labour productivity growth, as shown in the following comparative graph for the EU28 economy as a whole.

Growth in real estate sector labor productivity – EU28






Technology

About Martin Schwarzburg

Martin Schwarzburg

Martin Schwarzburg is based near Zagreb, consulting with clients on a variety of strategic and operational topics with a focus on international markets, real estate and private eEquity. He previously served as Global COO Real Estate for the Abu Dhabi Investment Authority (ADIA) and Finance Director Europe for AIG Global Real Estate.

Articles by Martin Schwarzburg

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