In 2024, the construction and real estate sectors are confronting a blend of new challenges: rising interest rates, lower sales, and expensive materials, in addition to historical issues like digitization lags, environmental concerns, and a labor deficit exceeding two million. On top of these hurdles, there’s still a pressing need to build 13,000 net homes daily to prepare for two billion more people by 2050. It demands urgent attention and solutions to relieve these burdens off the sector.
The big news in 2024 is the return of efficiency as a lead innovation driver. According to the survey conducted by Urban Land Institute (ULI) and RecAp (co-owner by PropTech Lab), we identify the current most important innovation drivers in real estate: (1) time efficiency, (2) profitability, and (3) cost efficiency.
However, these innovation drivers do not stand alone by themselves. Quality, new revenue streams, and sustainability are not to be neglected. Within 700 ESG related PropTech Startups in Europe, Biodiversity, Energy Efficiency, and Renewal Energy are the ESG focus points of ULI.
These drivers imply a shift to tenant-centric approach, where quality and social impacts need to go hand-in-hand with revenue and efficiency. In order to achieve this balance, innovation is essential. However, as Thomas Vandenbergh (General Manager Besix Technologies), once said at a proptech lab event: “PropTech is not a one time event like a tsunami, but a gradual event like global warming”.
We can expect the emergence and emphasis of solutions on Artificial Intelligence, Circular Economy, Living-as-a-Service models, Biobased Materials, Automation, Climate Resilience and Physical Risk to propel the real estate and construction sectors into a future-ready state that uplifts global living standards.
We have the ambition to select the most cutting-edge technologies and innovations, and have them exhibiting at Realty 2024. This will allow the sector to embark in an immersive experience towards the future of Real Estate and cities.
Copy: Idriss Goossens, Founder & CEO of PropTech Lab, Partner of Realty Belgium 2024
