U.S. Markets closed
  • S&P 500

    3,662.45
    +40.82 (+1.13%)
     
  • Dow 30

    29,823.92
    +185.28 (+0.63%)
     
  • Nasdaq

    12,355.11
    +156.37 (+1.28%)
     
  • Russell 2000

    1,836.05
    +16.23 (+0.89%)
     
  • Crude Oil

    44.40
    -0.94 (-2.07%)
     
  • Gold

    1,813.90
    +38.20 (+2.15%)
     
  • Silver

    24.06
    +1.52 (+6.75%)
     
  • EUR/USD

    1.2079
    +0.0144 (+1.2079%)
     
  • 10-Yr Bond

    0.9340
    +0.0900 (+10.66%)
     
  • Vix

    20.77
    +0.20 (+0.97%)
     
  • GBP/USD

    1.3427
    +0.0095 (+0.7130%)
     
  • USD/JPY

    104.3100
    -0.0140 (-0.0134%)
     
  • BTC-USD

    19,102.76
    -297.00 (-1.53%)
     
  • CMC Crypto 200

    374.93
    -4.93 (-1.30%)
     
  • FTSE 100

    6,384.73
    +118.54 (+1.89%)
     
  • Nikkei 225

    26,787.54
    +353.92 (+1.34%)
     

Canadian real estate companies are still cautious when it comes to investing in PropTech

KPMG in Canada says it's time for Canadian real estate companies to commit to PropTech

TORONTO , March 2, 2020 /CNW/ - Canadian real estate companies have been slow to embrace property technology, or "PropTech", putting them at risk of losing market share or falling behind their global peers, finds a new KPMG in Canada report.

KPMG LLP (CNW Group/KPMG LLP)
KPMG LLP (CNW Group/KPMG LLP)

Canada's PropTech Journey: How Canadian Real Estate Companies Are Faring in the Digital Age reports that only 36 per cent of companies surveyed have a digital strategy, compared to 58 per cent globally.

"All industries are experiencing some form of disruption; Canada's real estate industry is no exception," says Lorne Burns , Partner and National Industry Leader for KPMG's Building, Construction and Real Estate group. "Historically, it's been a conservative industry, but companies can no longer afford a wait-and-see approach. If you're not already embracing digital technology and leveraging data, you run the risk of either losing market share or experiencing revenue income erosion or both."

Technology – from blockchain, green tech, the Internet of Things, deep data, artificial intelligence and augmented reality applications – is disrupting and improving how real estate companies buy, rent, sell, design, construct, and manage residential and commercial property.

"There are several ways to try out PropTech solutions, whether on a large or a small scale," says Burns. "You won't be successful with everything you try, but that's what innovation is all about. Like any significant change, it will feel uncomfortable."

The report notes that all of the real estate companies surveyed in Canada have appointed a digital leader to oversee their technology efforts, which encouragingly demonstrates that they understand the importance of a digital approach. However, only 28 per cent come from a technology background, comparatively similar to 30 per cent globally.

In terms of cyber preparedness, while 70 per cent say they feel prepared for a potential cyberattack, only 39 per cent have formally tested how they'd handle one.

The report highlights a number of bold steps Canadian real estate companies can take to embrace the technological revolution, including:

  • Hiring leaders with digital/technology backgrounds to lead the transformation, rather than appointing real estate leaders from within

  • Embedding data and analytics into how they run their business

  • Building a company-wide digital strategy

  • Partnering with PropTech companies to co-create solutions

  • Looking beyond streamlining operations and cutting costs to find ways to use technology to improve engagement with tenants, customers, and customers' tenants

  • Assessing their cyber security readiness to ensure their data is well protected

"Canadian real estate companies are awakening to the digital era, albeit a bit slowly. Now's the time for them to really dive in," says Saqib Jawed, Partner and the PropTech Lead for KPMG's Building, Construction and Real Estate group. "This'll look different for every company, of course; large companies with deeper pockets will explore technology in different ways than smaller companies will. But, the only way to find what works for your business is to get started."

The Canadian findings are from KPMG International's recently issued 2019 Global PropTech Survey.

ABOUT KPMG IN CANADA

KPMG LLP, an Audit, Tax and Advisory firm (kpmg.ca) is a limited liability partnership, established under the laws of Ontario , and the Canadian member firm of KPMG International Cooperative ("KPMG International"). KPMG has more than 7,000 professionals/employees in over 40 locations across Canada serving private- and public-sector clients. KPMG is consistently recognized as an employer of choice and one of the best places to work in the country.

The independent member firms of the KPMG network are affiliated with KPMG International, a Swiss entity. Each KPMG firm is a legally distinct and separate entity, and describes itself as such.

SOURCE KPMG LLP

View original content to download multimedia: http://www.newswire.ca/en/releases/archive/March2020/02/c9555.html