The technological impact on real estate investing: robots vs humans: new applications for organisational and portfolio strategies
Journal of Property Investment & Finance
ISSN: 1463-578X
Article publication date: 28 December 2020
Issue publication date: 10 February 2021
Abstract
Purpose
The goal of this paper is to present a roadmap for real estate operating companies (REOCs) to transform themselves into tech-centric enterprises.
Design/methodology/approach
This qualitative approach is based on the impact of technology on physical real estate assets and organisational structures as reviewed in industry and academic literature, professional experience and current property technology (PropTech) applications.
Findings
New technologies are rapidly changing how investors, tenants and managers use, invest and finance property. The revolutionary change for the industry will be in its organisational and industry structure, away from the traditional hierarchical-mechanistic form to a virtual open-agile-innovative organisational form.
Research limitations/implications
Research limitations come from the lack of real estate companies utilising the hybrid flipped form of organisational structures.
Practical implications
Due to the current state of the economy, effects of the pandemic and rapid adoption of new technologies, real estate companies are likely to radically change the way they are organised, how they add value, innovate and their leadership/management style.
Social implications
The revolution in real estate technologisation will not come from the application of these technologies but the rapid change in ideological thought and management leadership style and culture.
Originality/value
The introduction of artificial intelligence/machine learning (AI/ML), blockchain, virtual reality, tablets, cell phones, applications, 5G, etc. is putting pressure on real estate organisations to change. These changes are long overdue and the future, modern real estate company will take a hybrid PropTech form – a company focussed on delivering high-quality products and services to its clients in real time.
Keywords
Acknowledgements
This paper forms part of a special section “Practice Briefing”, guest edited by Dr Larry Wofford, Dr David Wyman, Dr Elaine Worzala.Corrigendum: It has come to the attention of the publisher that the article Elaine Worzala, Lawrence A Souza, Olga Koroleva, China Martin, Alicia Becker, Nathaniel Derrick, (2021) “The technological impact on real estate investing: robots vs humans: new applications for organisational and portfolio strategies”, published in Journal of Property Investment & Finance, Volume 39, Issue 2, placed the author names in an incorrect order. The correct order of author names is: Lawrence A Souza, Olga Koroleva, Elaine Worzala, China Martin, Alicia Becker, Nathaniel Derrick. The authors sincerely apologise for this.
Citation
Souza, L.A., Koroleva, O., Worzala, E., Martin, C., Becker, A. and Derrick, N. (2021), "The technological impact on real estate investing: robots vs humans: new applications for organisational and portfolio strategies", Journal of Property Investment & Finance, Vol. 39 No. 2, pp. 170-177. https://doi.org/10.1108/JPIF-12-2020-0137
Publisher
:Emerald Publishing Limited
Copyright © 2020, Emerald Publishing Limited