This report summarised our post-pandemic observations and leverages JLL’s expertise to offer guidance and recommendations outlining a strategic path for integrating technology in real estate.
Insight
Navigate New Horizons: 2023 China PropTech Whitepaper
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Background
After years of development, China has emerged as a global PropTech hub. Despite economic headwinds, most companies have doubled down on their commitment to technology. At JLL, we commit to cultivating a real estate technology ecosystem that thrives on openness, transparency, and collaboration. We have built and developed a database of more than 700 domestic PropTech companies and projects, along with a set of professional data classification standards for specific scenarios. We have also conducted a global survey on real estate technology, receiving more than 1000 responses from corporate tenants, investors, and developers in 10 countries, and featuring input from 82 Chinese respondents. Our extensive database and survey results are more than a resource—they are a blueprint for innovation.
China PropTech panorama
The PropTech investment remains resilient despite economic stress
The survey result illustrates a resolute inclination towards this trend - 92% of corporate occupiers (“occupiers”) and 87% of investors and developers are planning to increase their investments in real estate technology budget over the next three years, surpassing operating budgets, overall CRE spending, growth in headcount and real estate footprint. About 60% of investors and developers indicate substantial growth in tech budgeting, signaling their resolution towards tech-led transformation.
ESG is a growing investment focus for companies
Within the real estate industry, a heavyweight in global carbon emissions, the commitment to ESG has catalysed a surge in PropTech investment gears towards sustainability. Our survey finding shows that 78% of investors and developers prefer to work with companies that bring sophisticated ESG performance tracking and evaluation technologies to the table.
JLL global real estate technology survey, 2023 (China part)
AI-related technology is attracting significant attention with a penetration rate of 40%
AI is poised to be the foremost driver of transformation in the real estate sector within the next three years, following closely behind clean energy solutions. The rise of ChatGPT has shone a spotlight on Generative AI (GenAI), propelling an exponential growth of its market size. Despite this, survey finding suggests a pervasive lack of understanding of AI and GenAI, signalling a need for specialised training and market education to concert AI concerts into viable, value-driven products and solutions.