The transformative power of information and communications technology (ICT) is today evident across all economic sectors. Industries as diverse as banking, insurance, manufacturing, logistics, and retail have all undergone significant changes. No longer confined to office environments, ICT, particularly the internet, has deeply integrated into our daily routines, revolutionising communication and business practices.
At its heart, though, what is going on is more ‘datafication’ than mere ‘digitalisation’.
“As with everything in life, data is allowing us to get to the heart of the matter,” said Gavin Fitzgerald, partner and real estate specialist at law firm Ogier Ireland LLP.
This is as much the case in property as in other sectors, albeit the property sector is less mobile than many.
Indeed, the use of effective information technology in real estate is driven by the same factors as in every industry, Fitzgerald said.
“There have been plenty of proptech solutions which promised to change the landscape, but ultimately failed. The most successful examples of the implementation of technology in real estate must demonstrate three key things: (a) lower costs, (b) create efficiencies, and (c) most of all, they need to fix a problem that actually exists. You would be amazed how often the latter is overlooked.”
Ogier itself, recognising the need for practical solutions, took an active approach to developing its own proptech capabilities.
“We’ve been banging the drum for the digitisation of the legal process for new home sales for years. Previously, we didn’t have the tech capacity internally so, during [the] Covid [pandemic], we spoke to some external technology providers to see if we could sync up with a credible partner to help us build our product. One of the counterparties we were dealing with went on a solo run and created an entire new communications system - ‘WhatsApp for solicitors’! This was a prime example of looking to solve a problem that didn’t really exist,” said Fitzgerald.
Recognising the advantages of building a digital conveyancing portal on their own terms, Ogier invested in its own internal technology team, both in Ireland and globally, to build a digital portal for home-builder clients who can now benefit from the digital data treatment.
“While solicitors are often guilty of thinking they know it all, what you really need with any proptech solution is to consult with the end users. In our case that was consultation with home builders and agents. Our end-vision for the new-homes portal will include all stakeholders in the property chain; however, we have decided to focus our attention currently on the home builder only. Our sell-side portal provides real-time data-driven insights, a customised dashboard which allows the client to follow the key metrics of the sales process, all with the aim of streamlining the entire legal process. Our hope is to integrate buyer’s solicitors into the process but that will follow. Sadly, there is still substantial pushback from buyer’s solicitors to fully embrace technology. You essentially need to be so successful with the proptech that everybody is effectively forced to use it,” he said.
An example of this, he said, was the slow adoption of augmented reality (AR) and virtual reality (VR) in real estate.
“The pushback on augmented reality was unbelievable, because agents thought it was going to take away their jobs. Then Covid arrived and everything changed – agents were forced to integrate it to their business model and the best ones thrived. You look at someone like Owen Reilly – he has transformed how people view homes and his unapologetic embracing of technology has catapulted his business,” he said.
The first fruit of this is Ogier’s digital conveyancing portal, labelled iConvey, which as of right now is fully functional on the sell side, with plans to extend out to buyers.
Hitherto, long, weekly calls were required to keep everyone on the sell-side up to speed. With digital data, anyone who needs to know something can find out immediately.
“Developers and agents use it, and they can get a live update on how their new home development is progressing. So, if you are selling 100 homes, you can check with the click of a button where you are on house five, four, 12 of whichever ones it is that you need to know about. We are also currently working on the mobile version of the portal,” Fitzgerald said.
Because this is a process centred on data, it also allows for extrapolation and interrogation.
“You can customise your dashboard to focus on the key metrics you may wish to optimise. For most clients, it is speed. Clients can track the progress of all sales and can even drill into the minutiae of the data if they wish. On a current scheme we are working on, the average timeframes from contract issuing to exchange is approximately 24 days, but we see no reason why this can’t be two weeks. Whether it’s the use of digital execution, digital booklets of title or a guaranteed reply to buyers within 24 hours, new home sales lend themselves to processes,” he said.
As with everything in life, data is allowing us to get to the heart of the matter
The next stage for Ogier is integration with other software used in real estate and construction, such as Procore, the cloud-based construction management system.
“iConvey can link into it and we get an automatic notification when a builder completes a snag. This may save a couple of days, which doesn’t seem substantial, but we understand the importance of compounding and if we can make savings at every corner, it adds up. But the biggest lever we will pull will be the integration of purchasers’ advisers,” Fitzgerald said.
This will greatly speed the sales process by reducing bureaucratic procedures. For example, in one recent case, a 30-unit apartment block saw 20 out of the 30 solicitors demand hard copies of the title pack.
Despite the penchant for paper, Fitzgerald said, those who have experienced the digital transformation do not want to go back to wet ink.
“The development community often get a bad rep. However, if you can demonstrate ways to save costs and improve efficiencies, home builders will give it a go all day long. We set a target of having 300 new home sales on the portal by the end of year one, and as of today, we already have 400 in the pipeline with more to come,” he said.
This rapid adoption demonstrates the portal’s value, and the positive feedback from clients is driving further enhancements, Fitzgerald said.
“One developer requested to track their level of debt on their dashboard, so each time they sell a home they see that debt lowering. It’s almost gamified the process, so every day a house has not sold they will know that the debt remains unchanged, impacting their overall financial picture,” he said.