Digital, a spur for societal changes

Expert interview - 10/21/2016

Ambroise Huret and Morand Studer, partners at Eleven (strategic advisory firm) analyse the effects of the digital revolution on real estate.

Partners - Eleven Conseil

Is digitalisation the origin of the ongoing societal changes or is it rather the opposite?

The digital age offers an impetus to societal changes and, primarily, an increasing preference by consumers for use, to the detriment of ownership. The scenario is as follows: “why have a car if I can use someone else’s when I need it?" Without digital this demand would not be satisfied by any offering or would suffer from a mediocre user experience. Can we imagine a Blabacar by telephone? It is, then, supply which creates the demand. And it is the technological revolution which produces the change. It meets latent, ancestral requirements which it was not possible to satisfy.

Is this economy of use and sharing structural or is it meeting the constraints of the economic crisis?

By sub-letting one’s apartment one’s purchasing power, which tends to stagnate or decline, is increased. Nevertheless, these practices are also the translation of an entry into responsible consumption scenarios.

What will be the e ect of these trends on real estate prices?

A multitude of variables influence real estate prices. This sharing economy will mutualise surface areas. Nevertheless, digitalisation will at the same time sustain demand. It is possible today to visit apartments in Paris using your smartphone, from wherever you are in the world. Soon we will all be able to visit these same apartments in virtual reality thanks to companies such as Occulus Rift, which currently belongs to Facebook. 

Le digital, levier des évolutions sociétales

Many start-ups are going to equip themselves with minidrones, capable of faithfully reproducing apartments in 360° and in three dimensions. This will make landlords’, buyers’ and tenants’ live easier. All these trends also tend towards a greater differentiation between quality properties and those with defects.

eleven is a strategy consulting firm specifically founded to address the challenges of the digital revolution.

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