Digital Technology And The Real Estate Industry

Mohd Lizam

Abstract


This paper briefly summarises the extent of the technological impact on the real estate industry, in particular, digital technology. As real estate industry is naturally characterized by several disadvantages in comparison to other industry, understanding the impact of digital technology is crucial to the industry on whether this technology will distrust the industry or complement the business process. The emergence of PropTech start-ups has made the industry players to re-evaluate its organisational strategy to align the business process to a possible threat to the present business model. Prior studies suggest that PropTech comes in there waves in which each wave is characterized by the respective period advancement in digital technology. Several studies also indicate that digital technology may not entirely disrupt the industry but do have a significant potential to act as a complement to the industry in improving its productivity and efficiency.


Keywords


Digital technologies; Proptech; disruptive innovation; real estate

Full Text:

PDF

References


Shaw, J., “Platform Real Estate: theory and practice of new urban real estate markets,” Urban Geography [2] Baum, A., “PropTech3 – The future of real estate” [3] KPMG. Bridging the gap: how real estate sector can engage with PropTech to bring the built and digital environments together. Tech. Rep. 2017.

Christensen CM, Bower JL. Customer power, strategic investment, and the failure of leading firms. Strategic management journal. 1996 Mar;17(3):197-218. [5] Christensen CM. The innovator's dilemma: when new technologies cause great firms to fail. Harvard Business Review Press; 2013 Oct 22. [6] Christensen CM, Rosenbloom RS. Explaining the attacker's advantage: Technological paradigms, organizational dynamics, and the value network. Research policy. 1995 Mar 1;24(2):233-57. [7] Hoesli M, MacGregor BD. Property investment: principles and practice of portfolio management. Routledge; 2000. [8] Fu Y, Ng LK. Market efficiency and return statistics: Evidence from real estate and stock markets using a present‐value approach. Real Estate Economics. 2001;29(2):227-50. [9] McDonald JF. Optimal leverage in real estate investment. The Journal of Real Estate Finance and Economics. 1999 Mar 1;18(2):239-52. [10] Brueggeman WB, Fisher JD. Real estate finance and investments. New York, NY: McGraw-Hill Irwin; 2011. [11] Cannaday RE, Yang TT. Optimal leverage strategy: capital structure in real estate investments. The Journal of Real Estate Finance and Economics. 1996 Nov 1;13(3):263-71. [12] Lizieri CM. Occupier requirements in commercial real estate markets. Urban Studies. 2003 May;40(5-6):1151-69. [13] Crowston K, Sawyer S, Wigand R. Investigating the interplay between structure and information and communications technology in the real estate industry. Information Technology & People. 2001 Jun 1;14(2):163-83 [14] Kummerow M, Lun JC. Information and communication technology in the real estate industry: productivity, industry structure and market efficiency. Telecommunications Policy. 2005 Mar 1;29(2-3):173-90. [15] Kim G, Heineman M. More Than 12 Million Surfers Turn to the Web for Home Buying and Rental Research. New York: Nielsen/Net Ratings. 2003. [16] Pilkington M. 11 Blockchain technology: principles and applications. Research handbook on digital transformation. 2016 Sep 30, 225. [17] Babbitt D, Dietz J. Crypto-economic Design: A Proposed AgentBased Modelling Effort. Swarm Fest 2014: 18th Annual Meeting on Agent-Based Modelling & Simulation. University of Notre Dame. USA. June 29–July 1. [18] Chaum D. Blind signatures for untraceable payments. In Advances in cryptology 1983 (pp. 199-203). Springer, Boston, MA. [19] Dwyer GP. The economics of Bitcoin and similar private digital currencies. Journal of Financial Stability. 2015 Apr 1;17:81-91. [20] Zheng Z, Xie S, Dai HN, Chen X, Wang H. Blockchain challenges and opportunities: A survey. International Journal of Web and Grid Services. 2018;14(4):352-75. [21] Koch M. Artificial intelligence is becoming natural. Cell. 2018 Apr 19;173(3):533. [22] Salah K, Rehman MH, Nizamuddin N, Al-Fuqaha A. Blockchain for AI: review and open research challenges. IEEE Access. 2019 Jan 1;7:10127-49. [23] Dixon T. The impact of information and communications technology on commercial real estate in the new economy. Journal of Property Investment & Finance. 2005 Dec 1;23(6):480-93 [24] Benjamin JD, Chinloy P, Jud GD, Winkler DT. Technology and real estate brokerage firm financial performance. The Journal of Real Estate Research. 2005 Jan 1;27(4):409-26. [25] Larceneux F, Lefebvre T, Simon A. What added value do estate agents offer compared to FSBO transactions? Explanation from a perceived advantages model. Journal of Housing Economics. 2015 Sep 1;29:72-82. [26] Zhang D, Zhu P, Ye Y. The effects of E-commerce on the demand for commercial real estate. Cities. 2016 Jan 1;51:106-20. [27] Baen J. The effects of technology on retail sales, commercial property values and percentage rents. Journal of Real Estate Portfolio Management. 2000 Jan 1;6(2):185-201. [28] Gorczynski T, Kooijman D. The real estate effects of e-commerce for supermarkets in the Netherlands. The International Review of Retail, Distribution and Consumer Research. 2015 Aug 8;25(4):379-406.




DOI: http://dx.doi.org/10.25139/sng.v9i2.1811

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

INDEXED BY :


OFFICE :

Program Studi Magister Management

Economic and Business Faculty
Universitas DR Soetomo Surabaya
Semolowaru No. 84
SURABAYA, Jawa Timur
Phone. (031) 5926116/Fax (031) 59338935
E-mail: [email protected]

Situs Jurnal : http://ejournal.unitomo.ac.id/index.php/feb/index

Creative Commons License
SINERGI is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

free
	web stats View My Stats