Original Article: January 07, 2020 GlobeSt.com
2019 was a record-setting year for PropTech. From the highest highs (a record $16 billion in VC investments) to the lowest lows (WeWork implosion), 2019 may well go down as one of the most eventful years to date for PropTech.
And, going into 2020, there is cautious excitement around PropTech, coupled with the possibility of explosive growth ahead. Will 2020 be the year that delivers this explosive growth?
According to Nitin Vig, CEO for Mobile Doorman, 2020 will be even bigger than 2019. Here are some of his predictions for the 10 big ideas that will shape PropTech in 2020:
1. Early adopters of PropTech will start to break away from the competition
One only has to look at adjacent industries (hospitality/travel, retail, etc.) to see how players who embraced tech fared compared to their peers who did not. Take retail for example. While some players vanished (Circuit City) and others became a shadow of their former selves (Sears), there are some that have emerged bigger and stronger (Best Buy). Why? They embraced tech wholeheartedly to not just break away from their competition but also avoid being disrupted by tech giants, i.e., Amazon.
Fortunately, other industries took notice and adopting digital tech has become a $2.3 trillion dollar business worldwide. The real estate industry will be no different. 2020 will likely be the year where players who wholeheartedly embrace tech, specifically PropTech, will start to break away from their competition, leapfrog into 2022-23 and eventually obliterate competitors by 2025.
2. PropTech will need to provide a clear ROI
While PropTech’s early success came from the focus on the user of space, its growth will increasingly depend on its ability to also deliver a financial return to the managers of physical space such as operators and property managers. How does PropTech increase revenue? Reduce operational costs? Increase operational efficiency? Increase renewals? These are the kind of questions PropTech will increasingly face and will have to answer in a ROI positive way in 2020.