BIG DATA: SHAPING THE FUTURE OF PROPTECHS

Lorenzo Ritella, founder and CEO of Propertista, was one of the first people to innovate and talk about PropTech in Spain.

 

Back in 2014, the housing market had remained unchanged for years, offering landlords a poor service, high commissions on sales prices, little in the way of transparency and minimal or no digital solutions.

 

“I could see that the homebuying process was in need of innovation. I was fascinated by what was happening in the UK, where the market was evolving faster than Spain, and a number of digital firms were gaining a strong foothold on the market. That’s why I decided to set up the digital property platform, Propertista, in 2015”

 

The company has also won several accolades and was a finalist in the Impact Startup category in the first edition of CBRE’s PropTech Challenge in 2017.

 

 

  • What do you think the future holds for PropTech firms?

 

PropTech firms are set to expand enormously over the next few years, because they represent the modern age and fulfil the underlying needs of millennial consumers, who expect increasingly digitalised and simpler processes.

 

Every single PropTech firm shares the same goal: to offer value-add to buyers and sellers and provide them with a better experience.

 

The key to the future is a multichannel approach that is able to optimise property returns. Digitalisation will help us to better understand buyers and make more-informed decisions.

 

 

  • Which type of technology will lead the way?

 

Data and Big Data are already being used – buyers and sellers receive offers that are tailored to their interests and can manage the whole process from their mobile phones, including signing reservation agreements and making payments.

 

However, there aren’t very many companies who really know how to use Big Data properly. They need to learn how to extrapolate useful information from the data, as this is key in terms of strategy.

 

Big Data allows us to:

 

  • Reduce costs and boost efficiency for companies.
  • Make rapid, data-driven decisions.
  • Develop new products and services by detecting client’s needs.

 

The only issue is that data can be highly volatile. In terms of statistics, data needs to be updated constantly in order to make the most of it.

 

 

  • One of the main challenges facing startups is how to adapt their business model to the market. What are the main business models in the real estate sector that will be impacted by PropTech?

 

In the short term, I think that both traditional and PropTech models can coexist, but in the mid-long term, PropTech firms will ultimately gain more ground. For example, no matter how much local market expertise a person may have, a human-conducted property valuation will never be able to compete with a tool that can analyse endless streams of data.

 

 

Lorenzo Ritella

Founder and CEO of Propertista

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