We face the fascinating dawn of new property securities exchanges, including one that recently gained ‘recognised status’ to trade under FCA regulations (PropertyWeek.com).
But what are the key drivers to the uptake of these?
Fintech and Adtech exchanges are driven by the availability of data in ‘real time’ between market stakeholders. We should acknowledge that their rapid growth is based on the technology data players that enable them.
Data heads talk about the ‘four Vs’ of data: volume (how much), variety (how many types), velocity (speed of delivery) and veracity (level of accuracy). Commercial property suffers in all these areas. Aiding valuation of stock in a securities exchange relies heavily on the ability to value the assets in current market dynamics, including forecasting. This is critical to speculative trading.
Data issues exist with the paradox of transparency, which everyone wants but fears losing competitive advantage by giving. When data sharing happens, the diversity and complexity of commercial property and the availability and validity of comparable data compound the problem.
The future lies in extraction and harmonisation of multiple data sources that are analysed, quickly and with confidence. New tech is fundamental to the growth of property securities exchanges. However, these solutions must maintain the competitive advantage of property data custodians, which, beyond the tech, still rely on integrity and trust.
Ben Mein, chief executive and founder, HARNESS Property Intelligence
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