Will real estate agents, property and facility managers share the dramatic fate of dinosaurs?
This kind of comparison may look a little bit extreme, but the idea should be taken in serious consideration as recently pointed out by the Forbes Real Estate Council.
While brick and mortar banks and traditional payment agents are trying to keep the pace of Fintech innovative startups and to figure out how to cope with the moves of Tech Giants towards financial services, a new wave of Proptech players is coming to disrupt what was so far considered a traditional sector.
Crowdfunding platforms may let individuals to access large real estate development projects, allowing small investments that could limit risk through divesification.
Virtual real estate broker like purplebricks or settled may help private individuals to sale or rent properties charging flat fees rather than usual market rates with savings that may reach 5,000 pounds per deal.
Techword has raked 12 most disruptive proptech companies that may change the shape o real estate markets in upcoming months.
To sum up the most relevant drivers of disruption are expected to be
- Easier link to capital markets for both equity and lending resuorcers
- Reduced frictions and Information Asymmetry between demand end offer of property
- Advanced Technology solutions to handle contracts, payments, and communication between all individuals and corporate involved in the market
It is not possible to foresee precisely what upcoming real estate market will look like and if current incumbents are going to transform or disappear, what we could take for granted and is valid for all the Fintech revolution space is the famous principle (wrongly attributed to Charles Darwin):
It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is most adaptable to change
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