Technology and digital systems are being discussed more than ever, with a consensus that these are crucial factors driving success in business and innovation today. This is especially true in the startup sector and various sharing economy businesses. However, one aspect that many may not yet clearly visualize is the outcome of the integration between technology and these business models, particularly in the real estate sector, which is a large industry significantly contributing to global GDP.


         Subbu Narayanswamy, a senior shareholder at the global real estate leader McKinsey & Company, revealed survey results regarding future trends in the real estate business, with a majority reflecting agreement on five key trends:

         1. Customer-centricity will become increasingly important.
         2. After-sales service in terms of care and delivery is what customers are looking for.
         3. Design that understands lifestyle and sustainability.
         4. Marketing and construction technology will play a significant role in business operations.
         5. Real estate investors will begin to expand their capabilities and those of their organizations.

         All these trends indicate a direction that seems poised to propel the real estate industry further than before. However, the dimensions of business model development are certainly not limited to these alone.

         The decimal points added after nouns hint at development pathways through technology, such as Thailand 4.0, which has become somewhat familiar. The real estate sector has also been using this term for a long time. Research from the University of Oxford on PropTech 3.0: the future of real estate indicates that the history of technology in real estate development, or PropTech (Property Technology), began between 1980 and 2000 in London, England, referred to as PropTech 1.0, which focused on property market analysis. A program called PC-driven Property Research was developed for distribution in 1982.

         Subsequently, more programs were developed to assist in the construction industry, particularly in engineering and architecture, notably AutoCAD from Autodesk, which transformed work processes in construction and design, increasing efficiency and accuracy to this day. Later, various software began to expand, with CoStar emerging in 1984 as a program for data analysis and marketing for real estate in the United States, eventually expanding to Canada, the UK, France, Germany, and Spain. CoStar became a market leader in data analysis software comparable to Microsoft Excel. The era of PropTech 1.0 began to slow down during the Internet Boom and transitioned into the dynamics of PropTech 2.0, the current wave.

        In this era, the influence of the startup boom has become a driving factor. The core of PropTech 2.0 is similar to other startups, focusing on the assembly of information sources, including venture capital, accelerators, and data researchers. Typically, this starts with selling business ideas in exchange for development funding, with initial funding often ranging from $250,000 to $2,000,000 in Series A, and $2,000,000 to $15,000,000 in Series B and C. If the business grows further, it often aims to scale through acquisitions and entering the stock market, supported by well-known venture capital and accelerators like 500 StartUps and Y Combinator. Research entities include CBRE, CBinsight, and MIT, which frequently host seminars on such business topics.

         According to a survey by CB Insights, nearly $6.4 billion was raised in PropTech funding in 2012 from various investor groups, including brokers, owners, and developers. By late 2016, Venture Scanner announced that PropTech funding reached $28 billion, indicating a clear awakening among global investors and real estate developers regarding the development of real estate technology and a fear of being left behind. The University of Oxford predicts that there will be over 2,000 PropTech companies in 2017, with 60% expected to secure better funding, with some businesses raising up to $300-500 million. Business models categorized under PropTech include property registration and search services, management and leasing software, marketing services, investment and crowdfunding, real estate data services, property appraisal and analysis, housing loans, real estate brokerage, property and building management, and 3D Virtual tours.

Management System: Bring The Next Big Things

         PiLabs, the largest PropTech accelerator in the UK, has created a business platform related to PropTech divided into four areas: Real Estate FinTech, which involves the control, management, and service of real estate; Contech, which focuses on construction management techniques; Smart Building, which deals with management and repairs; and Sharing Economy, which expands rental spaces. It was found that Real Estate has the largest share, while Smart Building and Sharing Economy are closely matched.

         When examining the growth figures of each business type, it is evident that the Sharing Economy sector has a growth rate equal to that of Real Estate FinTech. According to PiLabs, PropTech overlaps with FinTech, meaning that the boundaries of technology business models, whether PropTech, Fintech, ConTech, or others, are interconnected, providing a clearer picture of PropTech. Furthermore, it relates to other tech businesses in construction, repair, management, and finance, reinforcing how the universe of technology business is expanding beyond limits and posing a significant challenge regarding the future direction.

  

MASTER BUILDER TRANSFORMED

         In an era when humans began learning construction and sought to challenge God by building the Tower of Babel, aiming to reach heaven, humanity's arrogance was thwarted by a lack of understanding in communication, leaving the Tower of Babel as an unfinished ruin. Subsequently, humans learned various construction techniques, whether in wood, steel, or concrete, collaborating in a One for all, All for One manner, known as Master Builder. This continued until the Industrial Revolution, where construction reached its peak, and Master Builders disappeared from the world with the completion of the US Capitol Dome in 1800, separating the roles of architects and construction teams. The construction work model began to change, yet research indicated that construction efficiency declined due to the disjointed efforts of many people, leading to significant human error and unequal access to information. This prompted the construction industry to reconsider the Master Builder model, with BIM (Building Information Modeling) emerging as a solution. BIM involves creating 3D models to manage building construction and projects, clarifying engineering systems, reducing human processes, and establishing a robust data foundation for managing the building lifecycle.


         What makes BIM akin to Master Builder is its ability to connect data among project owners, designers, and contractors throughout all construction phases, displaying 3D results on computers without designers needing to work on paper. Additionally, BIM can store data on every construction component, including doors, windows, columns, beams, stairs, and even bricks hidden in walls, reducing inspection and repair processes when damage occurs. The strength of BIM lies in being a vast data-based system that helps minimize time and budget losses, enhances data transfer accuracy, and importantly alleviates human error, making BIM a widely adopted model for construction data application globally.

Data Shifts City

         As data becomes a crucial weapon for advancement in the technology era, it is evident that every startup has done its homework in data collection to produce products and services that address the pain points of the majority. These factors contribute to the remarkable success of startups. Moreover, data plays a vital role in driving significant urban development as well.

         After Hurricane Katrina caused extensive damage across the United States, the citizens of New Orleans established The Greater New Orleans Community Data Center to gather information from various sources to assist the public promptly. Once the storm subsided, New Orleans, known for its high crime rate, addressed the issue by fundraising from residents for the French Quarter Task Force, an application that allows citizens to report emergencies or suspicious activities more conveniently and quickly than calling 911.

         Remarkably, something similar is happening in Asia. In June 2015, the Singapore government collaborated with French company Dassault Systemes to create a 3D Virtual representation of the entire country! The 3D images and data of Singapore were published on YouTube in July 2016, just over a year later. The significance of creating 3D Virtual in Singapore is profound in terms of developing a national data repository, not just addressing one problem or form of development, but preparing for simultaneous city-wide development. This includes data on traffic volume, infrastructure, public health, safety, building construction, real estate, and many other unimaginable aspects.

         Imagine clicking on a room in a condominium and seeing the location of columns and all interior materials in detail. This is the enviable advantage of those who hold the universe of data in their hands. Technology not only drives business growth but also fosters national development, akin to a beautiful jigsaw puzzle where each piece contributes to a larger, complete picture, leaving no piece unaccounted for. This reflects the synergy of technology and innovation across various sectors.

To develop Thailand without leaving anyone behind

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