9 de mayo de 2017

How technology will disrupt construction and the real estate industry

Lego New York, by J.R. Schmidt
It is common knowledge that demography plays a central role in the development of the property industry. Population rise, either by birth growth or migrant inflow, fuels demand for dwellings and other real estate assets (commercial, office, industrial…). But population growth alone is not enough. The emergence of a middle class able to save money, together with a healthy financial sector, is essential.

Moreover, economic, cultural and social changes lead to a reduction in the average number of people per household, which stimulates demand for new dwellings and other related goods and services. Supply and demand shocks may also happen as a result of unexpected social or economic events.

Apart from these traditional drivers of the property business, there is a new one that is changing the world all around us: technology. It is a rising tide that is already reaching the real estate sector. As a consequence we can expect significant changes on the business model of the industry (products, processes, customers, margins…), and eventually on the real esate investment market.

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