Proptech: buzzword or innovation? – The Property Chronicle
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Proptech: buzzword or innovation?

Technology

Following a look at historical proptech impacts and then the current innovation and productivity challenges faced by the wider real estate industry, this final piece in our three-part mini-series will conclude by mapping the current proptech landscape and its likely impact.     

With digitalisation at its core, the current proptech wave is observable along the entire real estate value chain.

Deal evaluation

Legal due diligence

AI-enabled search engines conducting title search, reviews of property tax arrears, liens and mortgages and archeological encumbrances, using satellite imaging, will streamline the evaluation process. Necessary privacy law modifications and database normalisation will be some of the obstacles to overcome.

Technical due diligence

For brownfield sites the use of VR/AI supported soil and groundwater testing and contamination history investigations will support risk assessments and pricing.

Traffic/location analysis

AI/VR enabled traffic-flow and density evaluations combined with real-time data and demographic development assumptions allow for advanced infrastructure planning. Optimised grid systems, adaptive signalling and modular/on-demand transport systems will reduce congestion and support air quality. Data about traffic patterns and infrastructure congestion will allow a radical rethinking of cities, ranging from ‘walkable cities’ all the way to de-urbanisation.

Climate/geographical due diligence

Big-data/AI supported modelling can be used to stress-test locations and structural designs ensuring appropriate storm and flood proofing and HVAC dimensions. Drone technology integrated with geo-data and building-design software allows climate/environmental risk mitigation (such as flooding, mud slides, high-velocity winds, melting soils).

Demographic due diligence

Big data/AI supported demographic modelling will be used to evaluate future demand pattern driven by industrial clustering, domestic and cross-border migration.

Financing

Underwriting

AI-enabled asset/debtor risk analysis can consider risk appetite using real-time loan book data, ALM valuations and regulatory requirements.

Debt management

Efficiency gains will arise from integrated document/process-flow applications, loan and covenant monitoring, risk scoring/reporting.






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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