Could the property market ever work together rather than as competitors?

James_Dearsley2James_Dearsley2 Member, Administrator admin
edited June 6 in General Discussion

I talk a lot about how competition and cooperation are 2 different things currently but will combine in due course because of market changes.


Interesting to see BMW and Jaguer doing just this today over the building of electric engines in cars. No point investing millions seperately to build the same technology.


Makes more sense to build together and share knowledge and skills. 


I wonder if the property market has any similar dynamics on future product lines and whether they are ready to cooperate?

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Comments

  • Eddie_HolmesEddie_Holmes Administrator admin
    I don't think the property industry can be compared to automotive due to the relative fragmentation. I think the cooperation and mergers will come in the tech suppliers
  • Bert_BroadheadBert_Broadhead Member
    I think this is already happening albeit often through intermediaries. Look at 5th Wall who have brought together a cadre of large property firms, across which they can incubate, test and grow emerging real estate technologies.

    Otherwise, look to VTS. Brookfield are a global user and keystone investor (so presumably help drive the direction of the business plan / development of the product) but they aren't exclusive users of the software.
  • James_Dearsley2James_Dearsley2 Member, Administrator admin
    That is a good point on 5th Wall @Bert_Broadhead and perhaps they have an investment thesis around this too e.g. investing in businesses which will benefit from each other and, in turn, increase valuations of all involved therefore a win, win, win scenario.

    Is that what is needed though, someone from outside seeing the potential and instigating the collaboration. Am i short sighted here and there are others that are actually instigating it?
  • Bert_BroadheadBert_Broadhead Member
    @James_Dearsley2 Collaboration and co-operation certainly exists but it's hard to refer across to your car example. As a possible comparison to building electric engines, it will be interesting to keep an eye on modular housing manufacturers. Do developers, housebuilders and investors do this on their own balance sheets or co-operate and co-invest in new platforms together? Although the current trend is for proprietary sub-businesses, I fully expect to see examples of the latter.
  • ChrisSChrisS Member
    If you mean PropTech and Property industry as a whole then there are loads of hurdles to overcome. There is for a start a thinking that only those who have worked in the industry can come up with solutions to make it better. Innovation comes from all sorts of areas - including the end user of a service. To think that a supplier of a service has all the answers is flawed - they are most likely only looking at the problem from their own perspective. They then create solutions to address their own needs. It isn't the same as looking at it from the consumer's perspective
  • Eddie_HolmesEddie_Holmes Administrator admin
    +1 @ChrisS I think we can agree that often those within the industry are well placed to spot problems but generally they do not have the tools, skills or experience to understand how to approach finding a solution. One of the key messages the property industry is slowly but surely realising is that innovation is a toolset every company requires and that most of them do not have it - yet!
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