Last Updated on October 24, 2023 by CREW Editorial
Canadian real estate companies are not as enthusiastic as their global counterparts in terms of adopting property technology (proptech) strategies, according to the latest report from KPMG.
The study said only 36% of property groups in Canada have a digital strategy in place, compared to 58% globally.
Lorne Burns, partner and national leader for KPMG’s Building, Construction and Real Estate group, said companies that have been slow to embrace proptech could be putting themselves at risk of losing market share and falling behind.
“Historically, it’s been a conservative industry, but companies can no longer afford a wait-and-see approach. If you’re not already embracing digital technology and leveraging data, you run the risk of either losing market share or experiencing revenue income erosion or both,” Burns said.
Proptech can include the adoption of blockchain, green tech, the Internet of Things, deep data, artificial intelligence, and augmented reality. Burns said these technologies are disrupting and improving how real estate groups operate.
“There are several ways to try out proptech solutions, whether on a large or a small scale. You won’t be successful with everything you try, but that’s what innovation is all about. Like any significant change, it will feel uncomfortable,” he said.
Another interesting finding is that of all companies that appointed a digital leader to oversee the proptech-adoption efforts, only 28% got someone with a technology background. This is similar to 30% globally.
In terms of cyber preparedness, while 70% said they think they would be able to handle cyber attacks, only 39% actually tested their strategies. Saqib Jawed, partner and proptech lead for KPMG’s Building, Construction and Real Estate group, said Canadians need to be able to dive in and start thinking of ways to protect themselves.
“This’ll look different for every company, of course; large companies with deeper pockets will explore technology in different ways than smaller companies will. But, the only way to find what works for your business is to get started,” he said.
