Information and communication technology in the real estate industry: productivity, industry structure and market efficiency

Abstract

This survey of changes in the real estate industry due to information and communication technology (ICT) covers three areas: (a) A brief survey of ICT applications in the property industry, (b) speculation about implications for market structure and productivity within the real estate industry, and (c) comments on the wider macroeconomic implications of these changes. Improvements in information and productivity may lead to important long-run changes in business processes and industry structure tending to favour larger firms and promoting specialization of functions. Changing the information structure of real estate decision systems could change system dynamics and improve allocative efficiency. On the other hand, under different institutional arrangements, better information could increase the amplitude of real estate cycles and destabilize economies.