Property Week’s Power of Proptech survey results were published last month and it appears that the property industry has started to embrace proptech – 61% of respondents commented that tech will have a positive effect on revenue in 2018, up 13% from 2017.
One part of the tech trend that is still overlooked is the group driving the change: namely millennials and generation Z. Property ownership among these generations is low, which might help to explain the slow rate at which the property industry has embraced tech compared to other industries. Put plainly, with no skin in the game there is low motivation for these generations to effect change.
There is little doubt comparing the 2017 survey results to the 2018 results that change is coming; this might partly be as a result of property crowdfunding and investment platforms that have opened the possibility of part ownership to younger generations. At property investment platform Brickowner, results show that the pace of change is increasing. Despite a gloomy market, the first quarter of 2018 saw the start-up taking just under £1m via the platform, with the second quarter coming in at over £1.5m – a total of £2.5m invested via the platform in 2018 to date. 44% of Brickowner users are millennials or generation Z investors.
When Brickowner launched in early 2017 proptech was still in its infancy. We thought that applying tech and innovation to areas within property investment that have not moved on for decades would be essential to build growth. Proptech and crowdfunding have created a new way of financing property deals that will become more mainstream over the coming years.
The emergence of property crowdfunding has levelled the playing field for smaller investors, who can invest with others to create new opportunities. The creation of an open market is a win for both investors and property developers.
Digital-only issue: RESI, steady, go
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Proptech and millennials are changing property