Real estate firms see cyber security risks as the biggest barrier to adopting technology, new research shows.
According to Clifford Chance and Concrete VC’s Proptech Survey 2020, cyber security risk was one of the top three concerns real estate companies have about adopting technology, with 48% stating it was the biggest barrier. Meanwhile, 52% said ownership of data was their biggest concern, and 41% said unclear value delivery was the main challenge.
Of the 98 respondents who completed the survey during the first lockdown, 80% were at C-suite or senior level. Of those C-suite respondents, 91% said drone-based inspections would increase in importance, and 78% thought the use of artificial intelligence and machine learning in extracting information from building documents would increase in importance.
Nearly two-thirds (65%) of senior leader respondents said the exchange of paper contracts between lawyers would decrease in the transactions process, and 76% said automated legal document assembly tools and the use of smart contracts would increase in importance.
Nearly 70% of all respondents believed listing portals would become an important tool for sourcing deals.
The report said: “The combination of the accelerated pace of change for the real estate industry and almost enforced adoption of new technologies combined with a ruthless economic environment is likely to act as a catalyst for the proptech lifecycle, driving a wave of consolidation as the winners come to the fore and M&A activity creates larger providers better able to meet the needs of large commercial real estate.”
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