The IT in Real Estate Market is projected to reach USD 8.91 billion by 2021, at a CAGR of 12.1% from 2016 to 2021. Increasing demand for smart technological solutions in the real estate sector to cater to varied preferences of real estate customers, increasing demand for enterprise applications to manage projects, popularity of asset & property management solutions, and growing need to manage data and ensure security of sensitive information are driving the growth of the IT in real estate market.
Increased requirement of enterprise applications by real estate companies to ensure proper functioning of their business processes has been one of the most significant factors propelling the growth of the IT in real estate market. These enterprise applications also enable real estate companies to obtain daily updates of projects that are under progress. Growth of the IT in real estate market has been attributed to the increasing acceptance of the concept of smart cities across the globe, owing to rapid urbanization. Moreover, the need to manage documents and secure sensitive information, which is of crucial importance in the real estate sector, is also driving the growth of the IT in real estate market. Furthermore, increased adoption of cloud-based solutions is creating lucrative growth opportunities for key players operating in this market. Organizations operating in the commercial real estate provide customers with smart solutions to control various systems in homes and offices. Capturing data from sensors in the real estate space, such as homes, workplaces, shopping places, and parking lots, among others, combined with the power of analytics, enables Internet of Things (IoT) to offer insights regarding preferences of customers. This, in turn, helps real estate companies obtain an enhanced understanding of customer preferences, which further contributes towards the growth of the IT in real estate market. Digitization of varied processes has resulted in increased creation, storing, transferring, and consumption of data. As such, the real estate sector requires various innovative ways to automate different business processes, such as residential management, prospect connects, affordable housing, and financing & accounting.
Adoption of enterprise applications is expected to grow in the near future, owing to factors, such as mobility, social media and smartphones, industry-specific solutions, and analytics. The customer relationship management (CRM) and business intelligence models are gaining traction with organizations keen to incorporate industry’s best practices and extend administrative support to their customers. Considering data security and mobility limitations, organizations are rapidly deploying customer relationship management (CRM), enterprise content management (ECM), business intelligence (BI), and business process management enterprise applications in the real estate sector. Based on enterprise application, the business process management segment is expected to grow at the highest CAGR from 2016 to 2021.
The IT in real estate market in the Middle East & Africa is projected to grow at the highest CAGR during the forecast period. Growth in this market is primarily attributed to the increasing adoption of E-commerce platform and cloud-based solutions by real estate organizations.
Moreover to achieve smart city goals, the UAE government has developed a number of incubators to support start-up projects. The Dubai Technology Entrepreneur Centre (DTEC) has sanctioned USD 13.6 million in investments for start-ups, and is offering mentorship through partnerships with technology companies, such as SAP, Intel, and Microsoft. To support the smart city initiative, Dubai Chamber and IBM have collaborated for a public-private partnership. Such worthy investments in the real estate sector has significantly contributed to the growth of the IT in real estate market.