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Just 16% of Prop Tech Companies Focus on Construction

Future Cities Catapult has released a report that reveals the potential for broader prop tech adoption in the UK real estate sector. Commissioned by the British Property Federation, the report included the following data:

  • 50% of prop tech companies emphasise sales and leasing while only 16% and 12% respectively apply themselves in construction and financing/investment.
  • Less than 5% of prop tech companies are involved in land acquisition and refurbishment.
  • No companies fell into the demolition/remediation category.

To improve sector engagement and encourage the adoption of new technologies, the report recommended that the sector, the British Property Federation, and the UK government take the following steps:

  • Make more clear, authoritative, and quantitative information available on the needs of participants in the property lifecycle and the various technologies available to property professionals. To make this happen, potential actions include:
    • Developing a library of existing and developing prop tech innovation.
    • Creating a property innovation index to assess how prepared a company is for tech innovation.
    • Creating a prop tech maturity index to give the market better insight into what technologies they should be investing in.
    • Research the more pressing technology needs of British Property Federation members and their tenants.
  • Make digital knowledge and innovative actions more mainstream. To achieve this goal, the next steps include:
    • Creating influential roles with for people with digital skills, such as software developers, engineers, and designers.
    • Establishing an open procurement platform based on challenge.
    • Creating a leadership development course that provides an overview of the technologies that drive tech innovation.

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  • Put together a cohesive strategy for encouraging innovation across the property sector. This would involve:
    • Forming a shared language and vision for the property sector.
    • The formation of a regulatory sandbox for the property sector to ensure that regulation continues to promote innovation.
    • Creating a property passport with data standards that are universal, especially for information related to buildings.
    • Early consideration of productivity and wellbeing. Centre for Digital Built Britain will work with innovators, architects, and the industry at large to adopt productivity and wellbeing at the early stage of the build cycle.

The British Property Federation is establishing a new Technology and Innovation Group for the property sector, to oversee its programme and encourage greater collaboration between the technology and real estate sectors, support the maximisation of technology, and support Britain’s reputation as a leader in prop tech.

Stefan Webb, Future Cities Catapult Head of Digitising Planning, said that digital business models, with their technologies and tools, have transformed multiple sectors, but the property sector has remained resistant.

Many say that it is too complicated, complex, and diverse but in terms of data and digital, it has more aspects that unite the different actors, asset classes, and activities across the property lifecycle than they assume.

Mr. Webb said that the choice for the UK property sector appears clear: create a more focused vision, improved market information, and increased collaboration or wait for someone else to step in and create a business that accomplishes the opposite of what is intended and needed.

Specialists in Construction Insurance

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