A new ecosystem of digital real estate: Developmental stages, technologies and prospects

Abstract

Dealing with the largest class of assets, real estate business is the slowest to master and implement innovations. Contemporary information technologies, such as block chain, big data, artificial intelligence, virtual reality, Internet of things, etc., are finding increased application in the real estate industry, creating an entire ecosystem of digital real estate. Unfortunately, Russian researchers and direct participants in the real estate market have so far ignored this trend, making little use of all the opportunities provided by innovative technological solutions. This article aims to analyse the main stages of technological developmental in the real estate sphere, as well as to assess the main trends and prospects for applying innovations in the Russian real estate market. Both general and specific methods of cognition were used: systemic, historical and logical. As a result, three stages in the implementation of innovations in the field of real estate (PropTech) were distinguished. The main technologies were discussed, along with their advantages, disadvantages and applicability. The real estate market is evolving, albeit at a slower pace than other markets; innovations are applied at all stages of real estate business. In the nearest future, the leading place will be taken by companies actively applying innovations. This particularly concerns those buyers and sellers that consider real estate as an investment instrument, actively implementing the principles of real estate management. The use of new technologies is important for optimizing costs, attracting new clients, facilitating work processes, as well as for the development of personalized approaches, improved property assessment, risk prediction, analysis of market efficiency and investment attractiveness. The real estate market in Russia is yet to implement new technologies. According to the author, this backlog results from the lack of investment in the field.