A new report reveals that the green transition remains the main challenge facing the property industry.
In “Danish Proptech Report 2022”, 361 Danish property industry players give their take on where they are right now in terms of digital transformation. The report is released in a joint effort by PropTech Denmark, a network organisation for the digital development and innovation of the Danish real estate sector, and Colliers, Denmark’s largest commercial property advisor and agent.
First published last year, the report tracks progress in a series of parameters revealing the digital maturity of the property industry.
Strong appetite for digital solutions in the industry
Survey respondents include startups and suppliers of digital innovations to the property industry. In this respect, 92% state that they experienced an increase in the demand for their products in 2021. In addition, one in three established players in the property industry collaborated with a startup in the same period, as opposed to a mere one in five in 2020.
This is also reflected in the volume of investments, up from DKK 173 million in 2020 to DKK 354 million in 2021, corresponding to an increase of more than 100%. At the same time, more than 70% of established market players state that they expect to further increase their investments in proptech solutions in 2022.
Digital and green focus interlinked
Sustainability is high on the agenda across industries, including the property industry. In the survey, the property industry in fact cites the green transition as the main challenge in 2022.
“Proptech investments are on the right track. This being said, however, only % of respondents cite improved sustainability as a target for increased proptech investments. This is remarkable, seeing that according to the survey’s findings, the green transition is the main concern of the industry in 2022. Add to this the imminent EU taxonomy for sustainable financing. A transformation without the digital aspect in place is very difficult. This could well herald a further boom in demand,” points out Michael Ambjørn, Director of PropTech Denmark.
Troels Lau Larsen, COO with Colliers, recognises this trend, “We see a stronger call for a focus on the green transition among our clients. But it is also high on Colliers’ own agenda due to rapid developments in the field of ESG. Among other things, we have committed to working towards neutralising our own carbon footprint by 2030, and we have just increased our investments in social contributions, most recently via Real Care, the first and only charity organisation backed by players in the property industry.”
Property industry lacks digital skills
Although the transformation process is on the right track, the report identifies multiple barriers to the increased digitisation of the property industry.
For instance, suppliers of digital solutions continue to view the property sector as a conservative industry investing too little in innovation. According to the report, the proptech suppliers claim that the top managers of the established industry simply lack sufficient digital skills.
This claim is supported by the established companies themselves, with more than 50% stating that they lack a digital strategy, citing their failure to allocate the required time, the lack of knowledge required to understand the potential of proptech solutions and not least the lack of digital skills as the main barriers to getting started.
“If you consider yourself to be lagging a bit behind, it is hardly surprising. Because this applies to the typical average company. But then again, who wants to be average or mediocre? Get hold of this year’s PropTech Report, use the compiled data to initiate the talks required on management and board level alike. Now is the time to act. And there is plenty of help available,” concludes Michael Ambjørn.
Read the report
A free copy of the report is ready for download at colliers.com and proptech.dk. If you have any questions, please feel free to contact Jakob Schmidt, Manager, Communication & Marketing, Colliers or Jakob Stoumann, Hub Director with Proptech Denmark.