Real estate has long been one of the slowest industries to innovate. Despite significant advances in PropTech , which offers solutions such as automated valuation models (AVMs) and real-time analytics, legacy infrastructure continues to slow down the real estate market. At a recent panel, experts noted that to realize the potential of PropTech , two major challenges need to be overcome: technological unpreparedness and fear of risk.
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The real estate market is outdated “equipment”
One panelist compared the real estate market to a Pentium- based computer running Windows XP — outdated and out of date. While PropTech offers the “software” of the future, including artificial intelligence and machine learning, the industry’s “hardware” prevents these technologies from working effectively.
In Cyprus, the process of buying and selling property is still fraught with paperwork. Legal documents require physical stamps , approvals are delayed, and data is locked in isolated government registries. Companies like Ask Wire could streamline these processes through automation and data integration, but the island’s infrastructure is not yet ready to accommodate such innovations.
A similar situation is observed in Greece, where, despite the growth of real estate investments, the basic processes remain outdated . In Romania, however, rapid urban development and a growing economy are confronted with the problems of an imperfect real estate management system. This shows that the gap between the capabilities of technology and the readiness of the industry to change remains in many countries.
Real-life use of PropTech tools
Ask Wire provides analytical tools that can transform the real estate market by providing real-time valuations, market intelligence, and environmental risk assessments. However, despite their potential, the adoption of such solutions is hampered by a reliance on traditional methods.
For example, in Cyprus and Greece, real estate market participants are often hesitant to rely on automated valuation models (AVMs), despite their accuracy and efficiency. Many still prefer manual valuations, which are more time-consuming and less accurate. For technology to replace outdated processes, market participants must be willing to abandon their traditional approaches.
Innovation Sandbox: A Safe Space for Experimentation
Another speaker proposed the concept of a “sandbox” as a tool for testing new PropTech technologies in a controlled environment. This model, successfully used in the UK financial sector, allows start-ups and large companies to jointly test solutions with minimal risk.
In Cyprus, this could involve piloting blockchain technology for property registration or digital platforms for property valuations. In Greece, similar experiments could accelerate government reforms in the real estate sector. Romania, with its strong tech sector, could use this model to manage urban growth and streamline real estate transactions.
Risk and resistance to change
One of the main reasons for the slow adoption of PropTech is the high degree of caution among market participants. Large companies and government agencies do not want to cooperate with startups , fearing their instability. As a result, a vicious circle arises: startups need support from large companies, but they are not ready to invest without proof of the effectiveness of the technology.
The sandbox solves this problem by providing a safe environment for testing. Successful experiments can become the basis for wider adoption of technologies and reforms in the industry.
PropTech Prospects in Different Countries
Cyprus, Greece and Romania have unique characteristics that make them ideal locations for PropTech implementation :
- Cyprus : High dependence on the real estate market (17% of GDP) and a growing technology sector create conditions for the integration of innovation.
- Greece : Rising foreign investment and modernisation of public administration open up opportunities for automation of real estate processes.
- Romania : Fast Growing Cities and a Strong Economy The IT industry can accelerate the adoption of PropTech to manage urbanization and transactions.
The transformation of the real estate market requires modernizing infrastructure and creating a culture of experimentation. The sandbox can become a bridge between legacy systems and cutting-edge technologies. By using this approach, countries can not only accelerate the adoption of PropTech , but also create a more efficient future for their real estate.
