Author: Eli McGeever, Director, Data & Innovation, JLL
Residential real-estate development is at a crossroads. Heightened net-zero mandates, spiralling construction costs, and rising tenant expectations for smarter, healthier homes mean that technology is ceasing to be a "nice-to-have" and is fast becoming the backbone of modern property development and management. It is impacting investment in property technology. For example, investment in AI powered PropTech surpassed US$ 630 million in 2023, underscoring how capital is flowing to solutions that promise both commercial and social returns..
The adoption of modular and off-site construction methods is fundamentally altering traditional building processes. By fabricating modules in controlled factory environments, waste materials such as timber, plastics, and concrete can be reduced by up to 90 per cent compared with conventional on site builds. Furthermore, analysis by McKinsey indicates thatmodular techniques can accelerate project timelines by 20–50 per cent while concurrently achieving overall cost reductions of up to 20 per cent.
Post-construction, digital innovations are reshaping the occupier experience and market engagement. Virtual and augmented reality walkthroughs now permit prospective buyers and tenants to remotely explore property layouts, streamlining site visit cycles and broadening market reach. Integrated smart-home systems offer residents intuitive control over environmental factors, including lighting and air quality, while providing access to communal amenities, leading to increased satisfaction and retention. JLL's Future Vision series projectsthat mixed-reality spaces will soon redefine personalised home experiences through sophisticated digital overlays on physical environments.
Crucially, technology is not merely an end in itself; its inherent value is realised through tangible outcomes. JLL's Carbon Pathfinder, adecarbonisation-planning SaaS, empowers developers to meet stringent net-zero targets while unlocking access to crucial green financing options. Predictive analytics are delivering double-digit reductions in energy consumption and maintenance expenditures. Moreover, sophisticated digital platforms are enabling the integration of social-return on-investment (SROI) frameworks, such as SROI and IRIS, at project inception, ensuring that new residential developments generate verifiable community benefits alongside financial performance.
At the forthcoming Global Property Expo, several PropTech exhibitors and talksessions will provide deeper insights into these transformative themes. The agenda includes a Fireside Chat on "How Tech Is Transforming Real Estate" featuring Mohamed Ismail Gafoor of PropNex, followed by a panel discussion titled "PropTech Innovation and Its Role in Real Estate." This panel will convene leaders from JLL, MetaProp, INTRIC, and GetGround to discuss breakthrough platforms spanning smart contracts and IoT-enabled buildings.
A pivotal advantageof property technology lies in its facilitation of Impact Investment within residential real estate development. The application of technology-driven performance metrics to social-impact frameworks ensures that every development delivers both a robust Return on Investment (ROI) and a significant Social Return on Investment (SROI). Impact investment underpins my work as Chair of the World Habitat Board of Trustees, and it is a subject I will be discussing with developers at the Expo.
Residential realestate's next frontier is digital. By embracing these technologies (across development, asset management and occupier services), we can deliver homes that are demonstrably greener, more cost-efficient, and profoundly more attuned to human well-being. It is not merely an aspiration but an increasingly commercial and social imperative.
About Eli McGeever
Eli McGeever is Director of Data & Innovation at JLL and is a seasoned realestate and data-tech professional with a strong foundation in leveraging data and technology to shape global property strategies.