Social Innovation and Real Estate

Preamble

Social innovation is the process of developing and deploying effective solutions to challenging and systematic social and environmental issues in support of social progress. This blog by the Iqbal Institute of Policy Studies (IIPS) presents the concept of social innovation and how it is linked to real estate development. Recent developments in this concept have also led to the introduction of new technologies which are changing the landscape of real estate.

 

Research Questions

• What are social innovation and its applications?
• How are social innovation and real estate connected?
• What are the recent innovative technologies in the real estate sector?

Introduction

Social innovation is a fast-growing phenomenon as more and more businesses, governments, and organisations are trying to understand how social needs can be met in a better way than existing solutions. Social innovation focuses on the process of innovation and looks at how change takes place. The outcome is usually a lasting social change due to a novel solution to a social problem. This makes it more effective, efficient, sustainable, and just than existing solutions. An important principle of social innovation is that the benefit accrued should be for the general public and not just for one private individual or company. Considering this factor, real estate serves as the best avenue for implementing social innovation as it is connected to the majority of social issues that require innovative methods for future sustainability and growth of human civilisation. Many countries now face problems with affordable housing, finance instruments related to real estate, and regulatory measures for effective real estate management. In a nutshell, real estate and social innovation go hand in hand to determine the future of sustainable development.

 

Social Innovation and Applications

Social innovation is the process of developing and deploying effective solutions to challenging and systematic social and environmental issues in support of social progress (Soule, 2021). Social innovation is not confined to any organisation or legal structure; rather, the solutions require active collaborations across multiple governments and private sectors in the profit and non-profit world. Some recent examples of social innovations include charter schools that operate free from regulations imposed on public schools, allowing them to teach using more innovative methods. A new emissions trade method has evolved where economic incentives are given to reduce emissions and pollution. A fair-trade movement has been established, which sets high standards for consumable products and only certifies producers who pay a minimum wage to their farmers. The concept of social innovation focuses on the ideas and solutions that create social value. Drivers of social innovation are exchanging ideas, shifts in roles and relationships, and integrating private capital with public, philanthropic support. As real estate is linked to multiple socio-economic issues in any given society, the role of social innovation in real estate cannot be overstated. Innovation in real estate can transform people’s lives and help solve the issues of affordable housing, finance, and investments.

 

Social Innovation and Real Estate

The real estate industry is related to the national economy. It directly impacts people’s lives while also affecting their prosperity and development. In the information age, real estate development has undergone great changes and acquired a new direction. The development of new technologies such as Artificial Intelligence (AI) and Blockchain have opened great opportunities and challenges for real estate and its allied sectors. It is high time that the real estate sector grasps the advantages of the internet economy and respond actively to innovative reforms that help maintain the environment and maintain stable and healthy development. The real estate sector can integrate its network of resources and form unique competitive advantages to promote growth. Several unmet social needs require innovations in the real estate sector’s design, planning, construction, property, facility management, transactions, leasing, investing, and finance. Social innovation can use these new technologies to provide solutions to each country’s specific problems and does not require the introduction of new technologies. Rather, it involves revitalising processes and techniques with unconventional methods. This means the social innovation model can learn from developed countries and their industry to impact growth inland. (KPMG, 2020) (Yun, 2016)

 

Innovations in The Real Estate Sector

The enhancement of public real estate assets has been at the centre of public policy debate worldwide. Due to a significant decline in the real estate market, public policies have associated the development of public assets with social innovation. The innovation journey distinguishes between the initiation, developmental, and implementation periods of the innovation cycle. Abandoned infrastructure has turned into a good opportunity for the development of profit and non-profit entrepreneurs operating in diverse domains, with special focus on culture-based activities, digital manufacturing, and public subsidiary welfare. The introduction of technologies like 3D modelling and printing has made possible the construction of entire houses and buildings without heavy machinery involved in the process. Several houses have already been printed in Shanghai, China, and an entire office building was 3D printed in Dubai (Engel and Volkers, 2021). Another technology in the real estate sector used for social innovation is the virtual reality method. This allows users to see their property design in elaborate detail using 3D virtual glasses. This technology has not only changed the real estate marketing space, but it has also allowed people with disabilities to take part in real estate management proactively. Developments in robotics combined with improved sensor technology, artificial intelligence, and networked computing infrastructures have led to a revolution in the industry as construction can be performed much quicker and more precisely. Lastly, innovations in synthetic biology will impact the technology used by the real estate sector as it will impact the production of building materials and increase the life cycle of buildings (Forbes, 2019).

 

Conclusion

Social innovation does not only mean the introduction of new technologies to the world; rather, the concept is geared towards developing and deploying effective solutions to challenges faced by the people. It is not confined to any organisation or group and can be adopted by anyone in the profit or non-profit world. Real estate plays a significant role in people’s lives, and innovations in this sector can help solve people’s issues in different socioeconomic aspects. Technologies like 3D modelling, virtual reality, robotics, and synthetic biology are fast changing the real estate landscape and have helped in ameliorating multiple issues of social and environmental nature. Therefore, the role of social innovation in real estate is indeed an important one.

 

Key Takeaways

• Social innovation is the process of developing and deploying effective solutions to challenging and systematic social and environmental issues in support of social progress (Soule, 2021).
• Social innovation is not confined to any organisation or legal structure; rather, the solutions require active collaborations across multiple governments and private sectors in the profit and non-profit world.
• As real estate is linked to multiple socio-economic issues in any given society, the role of social innovation in real estate cannot be overstated. Innovation in real estate can transform people’s lives and help solve the issues of affordable housing, finance, and investments.
• The development of new technologies such as Artificial Intelligence (AI) and Blockchain have opened great opportunities and challenges for real estate and its allied sectors.
• The enhancement of public real estate assets has been at the centre of public policy debate worldwide. Due to a significant decline in the real estate market, public policies have associated the development of public assets with social innovation.
• Abandoned infrastructure has turned into an opportunity for the development of profit and non-profit entrepreneurs operating in diverse domains, with a special focus on culture-based activities, digital manufacturing, and public subsidiary welfare.
• The introduction of technologies like 3D modelling and printing has made possible the construction of entire houses and buildings without heavy machinery involved in the process.
• Developments in robotics combined with improved sensor technology, artificial intelligence, and networked computing infrastructures have led to a revolution in the industry as construction can be performed much quicker and more precisely.
• Innovations in synthetic biology will impact the technology used by the real estate sector as it will impact the production of building materials and increase the life cycle of buildings (Forbes, 2019).