Real estate leaders say that greater consolidation among proptech companies is needed if they are going to have an impact on the industry, according to new research by proptech software company Altus Group.
According to Altus Group’s survey of 400 senior executives at property companies with at least $250m (£190m) assets under management, 89% of respondents said there must be “significant consolidation” if proptech is to deliver the needs of the industry effectively.
Around 43% expected consolidation to begin within 12 months, but 81% said this would happen within two years.
In addition, 75% said they expect jobs to be eliminated as a result of adopting technology. However, 71% said technology would create new jobs and 78% said this would improve productivity.
Bob Courteau, chief executive officer of Altus Group (pictured), said: “CRE continues to rapidly accelerate its digital transformation and, despite the growing complexity stemming from the proliferation of data, the industry is clearly shifting from a stage of ‘trial and testing’ to one of practical innovation to solve the current challenges.
“At the same time, continued automation and significant proptech consolidation will both have a major impact and deliver considerable opportunities for the industry.”
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