Although proptech has many benefits, it also has some negative impacts that need to be aware of and anticipated by stakeholders in the property industry.
Here are some negative impacts of proptech that we may face:
Causing inequality and competition. Proptech can cause inequality and competition among stakeholders in the property industry who have access, ability, and readiness to use technology versus those who do not.
This can affect their performance, reputation, and market share. In addition, proptech can also cause competition between properties and other sectors that also use technology, such as e-commerce, fintech, edutech, and others, which can threaten the existence and relevance of properties.
Creating uncertainty and regulatory challenges. Proptech can create uncertainty and regulatory challenges for the property industry, especially in terms of policies, regulations, standards, and laws related to technology.
This can lead to conflicts, non-compliance, inconsistency, and ambiguity in property business processes. In addition, proptech can also raise ethical, social, and environmental issues that need to be considered and resolved by stakeholders.
Creating vulnerabilities and security threats. Proptech can create vulnerabilities and security threats for the property industry, especially in terms of data protection, security, and privacy.
This can lead to data leaks, misuse, manipulation, and theft that can harm property industry stakeholders and consumers. In addition, proptech can also create technical, operational, and financial risks that need to be avoided and addressed by property industry stakeholders.