When a market is in transition, digital solutions become more valuable. Measurability becomes essential, as does monitoring ESG criteria, controlling energy systems, using real-time visual dashboards, and having people within organizations who can interpret this data.
Last year, Proptech Hungary focused on technological solutions, with nearly 130 Hungarian proptech solutions and hundreds of international examples in its scope. This year, the focus has shifted more toward the real estate market—its pain points, driving forces, and reasons. As a first step, a digital survey was launched to collect feedback on the digital maturity of the real estate market: link to the questionnaire. By filling out the survey, we get a snapshot of where we currently stand in this transformation process.
The results of this groundbreaking research will also be shared with the public, as its mission is to educate the market, support it, and accelerate the efficient use of digitalization. Research shows that not only in Hungary but globally, proptech lags behind fintech by 8 years. However, acceleration and the spread of technologies have become visible in the past two years.
There are many reasons for this delay, including the market’s past success without digitalization, the relatively inflexible nature of real estate, where changes are felt with phase shifts—positive or negative—and the historically low demand for transparency. A ProptechZoom survey in 2023 revealed that the digital lag in real estate can essentially be traced back to five main causes:
Transparency is a sensitive issue, and motivations are unclear among market players.
Market success slowed the process, as there was no perceived need for change.
The uniqueness and segmentation of real estate: it operates in projects, not mass production, and repetitive processes are much easier and more profitable to digitalize.
Market rigidity: properties take years to build, they cannot be changed mid-process, and leases are signed for 3–5 years, so the market cannot immediately follow every shift.
The investor-driven nature of the market: everything is calculated on ROI, while innovation rarely pays off in the short term.
This is changing, but digital transformation will not happen overnight in the market or in companies. It is a long process that begins with identifying problems, continues with preparing the environment (dashboards, systems), and then developing strategies. One of the key features of technology is that most systems can be interconnected (if they have the right API—automatic programming interface), allowing correlations, trends, and conclusions to be drawn.
Digitalization does not simply mean starting to use proptech solutions. It represents a holistic change in perspective: first, one must change oneself, then the company culture, and finally the entire organization.
Digital transformation is not a top-down but a bottom-up process, meaning that we ourselves must change first—we must grow and adapt before the organization does. It cannot be forced; the entire organization must go through a process of change. To illustrate this, consider the case of the “checkered notebook”: handwritten notes are recorded in a notebook where they cannot be searched or retrieved. Notes are usually written down because they are important and require some action (to forward, elaborate, call, etc.), but the task does not automatically appear—as it would in the digital space.
If we ourselves understand the meaning and significance of digitalization, we will be able to lead our companies through digital transformation much faster, creating an efficient, measurable, predictable organization that can compete with the challenges of the 21st century and be far more adaptable to change.
About Proptech Hungary
Building a proptech ecosystem supports digital transformation. The goal of Proptech Hungary is to educate real estate market players and help digital solutions spread more quickly. We cooperate with neighboring countries—particularly in the Central and Eastern European region—with local real estate associations, domestic real estate companies, and we continuously research the latest proptech trends and companies.