Innovation Development in China's Real Estate
"The Innovation Development in China's Real Estate" is co-written by Deloitte China Real Estate Sector and Deloitte Research. In recent years, the government has introduced several policies to directly boost the development of real estate technology related sectors. The application of new generation information technology, including big data, artificial intelligence (AI) and Internet of Things (IoT) in the real estate sector, together with new technologies such as 5G communications, will further empower the real estate innovation to create more potentials in the real estate technology sector.
Viewpoints / key findings
I. Industry transformation to drive innovation
- In recent years, the government has provided strong support for information infrastructure building and technology R&D by introducing policies to directly boost the development of real estate technology related sectors, creating a better external environment for the transformation and upgrading of the real estate industry.
- Real estate is entering the phase of oversupply and destocking from the golden age of rapid development. Meanwhile, accelerated industry integration drives further concentration of resources to real estate companies with stronger comprehensive strengths.
- Slow urbanization and growing demands for high-quality consumption are pushing real estate to focus more on transformation of stock towards high quality and optimization.
- The real estate technology 3.0 is coming, i.e. the interconnectivity realized through integration of big data, AI and IoT with 5G communications. The new generation information technology is applied in real estate to maximize the potentials of data and internet for optimized access to data. The real estate technology 3.0 is also called the age of blockchain.
II. Technology to reshape industries and life
- Smart development In the age of big data, real estate has more diversified information sources. Take development planning for example, big data technology can be used for property valuation and investment decision.
- Smart construction The new digital building tools are based on virtual 3D models of construction projects and 3D information databases to reshape the architectural design. In addition, construction robots are disrupting the traditional methods, making it greener and smarter in the construction process.
- Smart marketing VR house viewing provides users with online house viewing experience, which is widely applied in housing transaction, housing lease, hotels and homestay accommodation. VR technology can also save the costs of transportation and time for house viewing, optimize visit experience and help make decisions.
- Smart operation IoT technologies have a promising future of application in real estate related sectors. The penetration of IoT is changing every aspect of people's living space from smart homes, smart buildings to smart communities.
- A desirable life led by technology Real estate technology is reshaping the traditional ideas of real estate industry. Besides, as industry-to-people and interpersonal connections are getting closer, a more effective and humane desirable life is becoming reality. Varieties of data generated by individuals can interconnect with everything via the IoT to improve the experience of staying at home, working at office and having leisure.
III. Real estate technology ecosystem in China
- Against the background of favorable policies and real estate companies seeking transformation, a complete real estate technology ecosystem covering real estate development, construction and marketing is taking shape in China. Various companies, including traditional real estate companies, internet technology players and technological innovation companies, are stepping in to develop healthy competition and jointly build a bright future.
- Traditional real estate companies have deep pockets and wide application markets while internet giants are strong in technology strategy and R&D, and emerging technological innovation companies are generally leaders in certain technologies or services.
- Different real estate companies implement distinctive real estate technology strategies based on their own strengths to facilitate technological transformation. Vanke, Evergrande and Country Garden are top three on the list of China's most valuable real estate brands. The technological transformation practices of traditional real estate giants could provide valuable insights.