According to a survey conducted by HexGn, about 90% of the surveyed professionals from the global real estate industry are uncertain about the returns on investing in PropTech solutions. The HexGn Global PropTech Survey 2019 was conducted across 40 countries and witnessed 406 respondents from different segments of the Real Estate life cycle participating in the survey.
Property technology has made impressive leaps in the last decade, and entrepreneurs around the world have put at display the various innovations born through it. The apparent enhancement in functionalities that PropTech can bring in has been presented to the real estate industry. However, the adoption rates are notably low across the industry in most geographies. One of the main factors for this, according to the survey, has been that the real estate industry is not sure about the returns that investing in PropTech will bring about.
Why is it that despite the known impact of PropTech, the adoption rates are seemingly low? Adoption of PropTech in most cases proves to be capital intensive and also involves mammoth changes in the way companies function.
Real Estate companies being unsure of Return on Investment, is an issue according to the survey that finds its roots in both sides – the service provider and the client. For a clearer understanding of the return on investment, the problem area has to be well defined first. The impact of the problem has to be assessed, and its effects quantified. Once the root cause of the problem is identified, and a solution that addresses the root cause is developed. Comparing the benefits with the current situation can easily lead to a near accurate assessment of the returns. The above needs collaboration from both sides – the real estate industry and the PropTech Startups.
Any startup venture must not only hypothesize the problem statements they are trying to address, but also validate them with stakeholders in the real estate industry. Real estate companies must also conduct a thorough assessment of their process flows, measuring them against key performance parameters, to identify inefficiencies and redundancies. The real estate industry can also outsource this exercise to the PropTech Startups, thus creating a deep collaborative foundation that will enhance the speed of tech adoption in the sector. Collaboration and co-creation is the new mantra, by intensely listening to the customers and developing the solutions jointly, PropTech Startups can reduce their time to the problem-solution fit milestone.
Based on the Global PropTech Survey insights, HexGn has developed a unique six months virtual program for PropTech entrepreneurs. This six months pre-acceleration program for PropTech entrepreneurs is designed to fast track their startup venture. The Pre acceleration program for PropTech Startups helps them in avoiding commonly made mistakes that can derail their Startup dreams. Through live sessions and data-based approach, the entrepreneurs learn to test hypothesis and potentially create an uncontested space for their venture. The program is run by experienced facilitators who bring global experience in launching and scaling up new ventures. Budding PropTech entrepreneurs can apply for the program at www.hexgn.com/startupready
HexGn believes that findings like these from the Global PropTech survey and industry-focused modules can help PropTech entrepreneurs in addressing any lagging areas that are keeping their venture from flying high.
HexGn, through its global research, industry events, and online programs equips individuals and businesses to tap into new opportunities and futureproof themselves. HexGn works with governments and private entities across the world.