PropTech: Turning Real Estate Into a Data-Driven Market?

Braesemann, Fabian; Baum, Andrew

doi:10.2139/ssrn.3607238

Cited by 16 publications

(13 citation statements)

References 18 publications

(18 reference statements)

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“…Dal Maso et al ( 2019), focusing on the case of Juwai, a platform that connects real estate agents with Asian buyers, argue that relevant platforms through their capacity to connect remote actors and bridge cultural asymmetries within the digital sphere, capitalize and extract value building on "the different cultural practices, colloquialisms, traditions, languages and social norms of the user groups". According to Braesemann and Baum (2020), business models that operate in the Property Technology (PropTech) market use the data to create Automated Valuation Models (AVMs) of high accuracy and high value on themselves, while contributing to the transformation of real estate into a data-driven market. Moreover, value extraction also derives from the commodification of previously non-marketed goods (Dobusch, 2019).…”

Section: The Role Of Platform Real Estate and Strs In Processes Of Co...mentioning

confidence: 99%

Platform—driven housing commodification, financialisation and gentrification in Athens

Pettas,

Avdikos,

Papageorgiou

2024

J Hous and the Built Environ

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The emergence and expansion of the digitally mediated, short-term rental (STR) market in Athens underplayed a key role in the rising inaccessibility to affordable housing, interrelating with broader transformations of the housing landscape, including i) the translation of the economic crisis into a housing one, ii) the unfolding of touristification processes in central Athenian districts and iii) the increased involvement of international investors and funds in the real estate market. In this paper, we bring out the role of STRs in the commodification and financialisation of housing and the unfolding of touristification processes in central Athens. We delineate the aforementioned developments as a series of successive waves, arguing that the STR market initially enabled the commodification of housing through its disassociation from the sphere of households’ social reproduction and its assetisation, facilitating the engagement of domestic and foreign investors and the association of the housing landscape with financial flows.

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Section: The Role Of Platform Real Estate and Strs In Processes Of Co...mentioning

confidence: 99%

Platform—driven housing commodification, financialisation and gentrification in Athens

Pettas,

Avdikos,

Papageorgiou

2024

J Hous and the Built Environ

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“…Another strand of literature looks deeper into the usage and utilisation of new technology in the real estate industry (Ullah et al. , 2017; Braesemann and Baum, 2020), in particular on the impact of PropTech on transaction and industry growth (Saull et al. , 2019; Siniak et al.…”

Section: Literature Reviewmentioning

confidence: 99%

“…They find that due to the emergence of PropTechs and their technological advancements, the level of available data led to increased transparency, escalating land prices and increased housing unaffordability. Another strand of literature looks deeper into the usage and utilisation of new technology in the real estate industry (Ullah et al, 2017;Braesemann and Baum, 2020), in particular on the impact of PropTech on transaction and industry growth (Saull et al, 2019;Siniak et al, 2020;Clayton et al, 2019). This literature concludes that technology and innovation play an increasing role in the real estate industry and affects every market participant, especially those that lack innovativeness.…”

Section: Key Survival Factors For Proptech Companiesmentioning

confidence: 99%

The PropTech investors' dilemma – What are the key success factors that secure survival?

Kassner

Cajias

Zhu

2022

JPIF

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PurposeThe real estate industry is known as a late adopter when it comes to changes and innovations. While the industry is slowly evolving, parts of the sector are increasingly being conquered by property-related start-ups, known as “PropTechs”. These companies offer solutions and cutting-edge technologies to increase efficiencies and solve industry-wide problems. However, little is known about these companies' survival. This paper analyses the survival rate of PropTech firms and the determinants.Design/methodology/approachBased on a sample of 1,052 firms, factors that influence the firms' survival rate are analysed using the Cox Proportional Hazards Model, which is expanded with non-linear splines to capture turning points in the survival.FindingsThe authors find that in addition to the size, financing condition plays the most critical role in the success of Prop-Tech firms, including the number of financing rounds and maximum number of investors over lifetime. Moreover, the relationships are non-linear. Founding years and technology focus can also statistically influence the success rate. Companies founded before 2008 focussing on Sustainability Technology, Data and Business Analytics, Real Estate-related FinTech and Visualisation show the highest success rates.Practical implicationsThe results are critical for investors interested in PropTechs to understand the success of their investments better. The importance of financing conditions shows that both investors and PropTechs may benefit from better financing processes that provide funds in a timelier manner.Originality/valueThe authors exploit a new and comprehensive data set that includes over 6,000 PropTechs globally. The authors' study fills in the literature gap on the determinants of the survival rate of PropTechs.

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“…Finally, PropTech is a generic term referring to property technologies in the real estate industry, traditionally a slow-moving asset class [34]. Data-driven markets are often characterized by a winner-takes-all competition between firms that offer platform business models centrally focused on providing digital services for users, who pay in providing more user data.…”

Section: Paymentsmentioning

confidence: 99%

Business Models and Sustainability Plans in the FinTech, InsurTech, and PropTech Industry: Evidence from Spain

Bittini¹,

Rambaud

Pascual

et al. 2022

Sustainability

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After describing the main features of the Spanish companies belonging to the FinTech, InsurTech, and PropTech sectors, the main objective of this study is to analyze whether their B2B/B2C business models are related to the existence of sustainability plans. Specifically, this paper analyzes whether the existence of a sustainability department is a determining factor for the business model adopted by the Spanish FinTechs, InsurTechs, and PropTechs. By using the multinomial logit regression, other factors such as the current closeness of companies to the sustainable development goals (SDGs), the sensitivity to domestic and European FinTech/InsurTech regulations, and the perception of FinTechs about such European regulations are debated before conclusions are drawn for a future research agenda.

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PropTech: Turning Real Estate Into a Data-Driven Market?

Abstract: We would like to express sincere thanks to Unissu and Crunchbase for the provision of data.

Cited by 16 publications

References 18 publications

Platform—driven housing commodification, financialisation and gentrification in Athens

Platform—driven housing commodification, financialisation and gentrification in Athens

The PropTech investors' dilemma – What are the key success factors that secure survival?

Business Models and Sustainability Plans in the FinTech, InsurTech, and PropTech Industry: Evidence from Spain

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