PropTech: Lessons From 2020
The 'PropTech: Lessons From 2020' key session of the International Real Estate Investment Forum PROESTATE.Live, which took place on 10 September, saw a discussion of the latest development trends on the PropTech market. The session participants discussed the new developments brought about by lockdown and what the consequences will be, assessed the prospects for the digital transformation of the construction industry over the next five years, and looked at the most promising segments on the PropTech market, as well as digital tools for property-backed lending to businesses.
10.09.2020
The Forum is being organized by the Roscongress Foundation; the Ministry of Construction, Housing and Utilities of the Russian Federation; the Academy of Real Estate (ARE), and IMMERGITY.
The session speakers included Chair of the Board of Directors of BEST-Novostroy and chair of the Expert Council on Innovations of the Russian Guild of Managers and Developers Irina Dobrokhotova, Partner and Head of Department for Valuation & Advisory at Cushman & Wakefield Konstantin Lebedev, Vice President of Becar Asset Management Victor Kozin, Partner at SRG Group Vladimir Oleynikov, Partner at PROPTECH.RF Kirill Malyshev, and Manager of KPMG's Digital Solutions Group Kirill Usaty.
Victor Kozin acknowledged that the 'post-COVID era' will throw up many challenges. "Digital technologies will nick our businesses," he said. "In five years, brokerage transactions will be carried out by robots." He gave an overview of the trends in global development, namely 3D modelling, digital twins of buildings, 3D printed buildings, smart homes, robotics in hotels and residential buildings, data centres, smart offices, digitalization in the office environment, and the proliferation of co-working spaces. "The pandemic has provided an additional steroid, giving a boost to all business segments," Kozin said. "We are now seeing genuine state support, including start-up fairs and grants. In the last year alone, there have been four conferences bringing together participants from across the board."
Kirill Malyshev presented a technology map, stressing the need to develop accounting systems. In his view, the government will turn its attention to the issue in the near future: "I am confident that government contracts will soon target advancements in technologies related to accounting systems. I am referring to land registry and document workflow, which are associated with specific sites, and checklists," Malyshev said. He believes that we are now seeing movement in this direction on the market: "It is difficult for someone who has come up with a development and a ready-made solution to pursue the project independently. You begin to reflect and work on the idea, and the system starts altering the business processes."
Vladimir Oleynikov reflected on the problems associated with document workflow: "At present, there are several scattered information sources on the market, including information about offers and actual transactions posted on the websites of liquidators, as well as non-public information about purchases and sales made by market participants. The aggregation of databases – from open sources first and foremost, such as tenders from liquidators – is now underway. The land registry system provides data on cadastral and market values based on offers. We have conducted an analysis of several regions and, unfortunately, in 50% of cases the value differs by over 30%. Over time, the situation will consolidate and smooth out." Oleynikov stressed that we will continue to see a growth in demand for property value calculation tools, analytics reports on various types of real estate, and automated price change indices covering various locations, something which is critical for banks."
The participants agreed that the market expects a recovery in demand from tenants and investors. Retail activity has already returned to 85–90% of the levels seen in February.
PROESTATE.Live partners: Official Partner – Mosinzhproekt; Partners – ANT Development and YugStroyImperial; Official Session Partners – A101 and Colliers International Group Inc.; Session Partner – Cushman & Wakefield.
Official website of the event: proestate.ru/en
The session speakers included Chair of the Board of Directors of BEST-Novostroy and chair of the Expert Council on Innovations of the Russian Guild of Managers and Developers Irina Dobrokhotova, Partner and Head of Department for Valuation & Advisory at Cushman & Wakefield Konstantin Lebedev, Vice President of Becar Asset Management Victor Kozin, Partner at SRG Group Vladimir Oleynikov, Partner at PROPTECH.RF Kirill Malyshev, and Manager of KPMG's Digital Solutions Group Kirill Usaty.
Victor Kozin acknowledged that the 'post-COVID era' will throw up many challenges. "Digital technologies will nick our businesses," he said. "In five years, brokerage transactions will be carried out by robots." He gave an overview of the trends in global development, namely 3D modelling, digital twins of buildings, 3D printed buildings, smart homes, robotics in hotels and residential buildings, data centres, smart offices, digitalization in the office environment, and the proliferation of co-working spaces. "The pandemic has provided an additional steroid, giving a boost to all business segments," Kozin said. "We are now seeing genuine state support, including start-up fairs and grants. In the last year alone, there have been four conferences bringing together participants from across the board."
Kirill Malyshev presented a technology map, stressing the need to develop accounting systems. In his view, the government will turn its attention to the issue in the near future: "I am confident that government contracts will soon target advancements in technologies related to accounting systems. I am referring to land registry and document workflow, which are associated with specific sites, and checklists," Malyshev said. He believes that we are now seeing movement in this direction on the market: "It is difficult for someone who has come up with a development and a ready-made solution to pursue the project independently. You begin to reflect and work on the idea, and the system starts altering the business processes."
Vladimir Oleynikov reflected on the problems associated with document workflow: "At present, there are several scattered information sources on the market, including information about offers and actual transactions posted on the websites of liquidators, as well as non-public information about purchases and sales made by market participants. The aggregation of databases – from open sources first and foremost, such as tenders from liquidators – is now underway. The land registry system provides data on cadastral and market values based on offers. We have conducted an analysis of several regions and, unfortunately, in 50% of cases the value differs by over 30%. Over time, the situation will consolidate and smooth out." Oleynikov stressed that we will continue to see a growth in demand for property value calculation tools, analytics reports on various types of real estate, and automated price change indices covering various locations, something which is critical for banks."
The participants agreed that the market expects a recovery in demand from tenants and investors. Retail activity has already returned to 85–90% of the levels seen in February.
PROESTATE.Live partners: Official Partner – Mosinzhproekt; Partners – ANT Development and YugStroyImperial; Official Session Partners – A101 and Colliers International Group Inc.; Session Partner – Cushman & Wakefield.
Official website of the event: proestate.ru/en