Traditional construction techniques are experiencing fast and continuous transformation. Professionals in the fields of engineering and construction are becoming more open to the idea of digital transformation. Implementation of groundbreaking technology is generally referred to as Construtech and its adoption continues to transform the construction industry as we know it.
Likewise, after the financial crisis of 2008, companies were impelled to use technology to uncover new opportunities in dropping property values and improve profitability through more efficient administration. Prior to that period, the real estate sector used to be conservative and analog. As a result, Proptech investment has steadily increased, peaking at $15 billion in 2019.
Technological Trends Driving the Future of Real Estate and Construction
With a fast-growing tech environment, innovation is consistently propelling new trends forward. It can be difficult to keep up with the constantly evolving and changing landscape, especially within traditional sectors such as construction and real estate. However, here are some of the top trends offering cutting-edge Construtech and Proptech solutions
Internet of Things (IoT): Despite the impact of the COVID-19 epidemic, it is expected that enterprises and startups will spend more on the Internet of Things over the next few years. In the construction and real estate industry, IoT applications include the deployment of smart devices that can do repetitive operations and maintain themselves. This improves efficiency and productivity while also lowering carbon emissions. It also helps to improve safety by using geolocation technology to spot threats beforehand and decrease environmental damage.
Cloud Computing: As society recovers from the effects of the pandemic, the global population will rely more on Cloud computing technology. This technology has the capacity to alter, use, access, manage, and share data held on remote servers for the construction and real estate sectors. In construction sites, real-time data sharing is extremely advantageous since it prevents delays and enables project timely completion while also saving money.
Big Data: Data seems to have become the oil of the internet age, with approximately 2.5 quintillion bytes created every day. With the speed at which the construction industry is expanding, this figure is sure to rise. Data can be extremely useful in identifying trends and the probability of construction dangers so that they can be avoided.
Data collected from machines via sensor inputs can be used to identify how to use fuel more efficiently in order to reduce expenses and environmental impact. Data can also be uploaded back into BIM systems to organize possible tasks whenever needed.
BIM (Building Information Modeling): With a Compound Annual Growth Rate of 17.5 percent from 2018 to 2023, the global Building Information Modelling (BIM) market is expected to reach USD14 billion by 2023. Over this time frame, North America is predicted to be the global leader, with over 30% of the market.
Despite the fact that BIM acceptance has been delayed over the last 35 years, a McKinsey analysis indicated that this technology today has a 60 percent-70 percent adoption rate. Companies can stick to budgets and stick to strict building schedules by using BIM technology.
How Israel’s Innovative Startups have Positioned the Nation as one of the Global Leaders in Construtech and Proptech
With approximately $45 billion in mergers and acquisitions, and initial public offerings since 2014, global demand for Israeli innovation is on the rise. An increasing number of Israeli PropTech and Construtech businesses are set to join the US market as the real estate tech sector continues to flourish.
Some of the most noticeable implications of the skilled labor shortage in construction, according to the 2020 AGC survey include higher project expenses and longer project timeframes. These issues led to the development of intelligent, self-driving robots for construction sites by an Israeli Startup. The startup’s debut solution is a drywall finishing robot that can plaster, sand, and paint, and will be utilized to address the construction industry’s severe scarcity of qualified workers.
This robot, which was developed in 2018, is built to withstand the rigorous circumstances of a construction site. It features USPTO-approved 3D scanning and real-time modeling technologies, an autonomous path planner, and floor-to-ceiling reach. The robot is equipped with modern sensors and runs entirely on batteries.
Another Israeli Startup uses its technology to automate the property management industry. The organization claims to be able to forecast property upkeep, repairs, and other concerns, as well as a property’s monthly operational income.
The startup’s business model is based on a monthly fixed fee and it uses data, AI, and workflow automation to provide a customized, all-inclusive management solution that estimates a rental properties’ net operating income. Maintenance, vacancy insurance, tenant administration, and rental listings are all included in the fixed all-inclusive price, removing the dangers and unknown variables of owning rental property while generating consistent earnings.
Numerous real estate funds, developers, and family offices today waste a significant amount of time and effort manually managing their data, primarily using outmoded Excel sheets. As a result, many private and institutional investors are unable to make the best data-driven judgments possible. Because of this, another Israeli Startup which was founded in 2019, has developed a software platform for the real estate market that manages data on investments and assets.
Real estate investors can use the platform to help them transition from conventional Excel-based operations to automated contemporary workflows. The platform also gathers all of the data and financial information, optimizes drudge work, analyzes costs, yield, and other factors, and offers data access to funds, developers, and investors while ensuring the data’s security and integrity.
Continued Technical Advancements Propel the Industry Forward
Real estate technology in Israel, is still in its early stages. Nevertheless, it’s expected that this industry will grow in the coming years as a result of increased economic progress, ingenious technological solutions, and the Israeli culture of innovation. The establishment of Israel’s first construction tech hub, the Construction Innovation Zone initiative, is another significant step ahead. The initiative intends to combine Israeli-style startup innovation with real-estate development and construction.