PropTech remains invisible and indispensable

As one of the first PropTech pioneers in Switzerland, Heinz Schwyter knows the digital development of the real estate industry like no other. In this interview, he talks about the importance of data, the role of AI, cultural and organizational hurdles and which trends and technologies will shape the industry in the coming years.

Mr. Schwyter, you are one of the pioneers of the Swiss PropTech scene. How did your journey in the digital real estate market begin?
After my time at Homegate, I asked myself how I wanted to use my knowledge further. The digitalization of the real estate industry was an obvious choice. Before the pandemic, however, hardly anyone was interested in this topic. It was Covid-19 that gave it a huge boost. From then on, digitalization was widely accepted and I found my place in the PropTech scene.

What early experiences at Homegate still shape your view of PropTech today?
Above all, the joy of experimenting and developing new approaches together. We wanted to create solutions that would advance the industry as a whole. This attitude is still with me today. Being open, working in an interdisciplinary way and testing boldly.

How digital is the Swiss real estate industry really, if you leave out the marketing jargon?
Pom’s Digital Real Estate Index has been below five on a scale of zero to ten for years. This clearly shows that the sector has a lot of potential for improvement. There is progress, but not a continuous digitalization push. Overall, we are more at the beginning of a professional digital transformation.

Where does Switzerland stand in an international comparison? Pioneer or laggard?
Switzerland has around 480 PropTech companies, which are small but qualitatively strong and diverse. Germany is significantly higher with more than 1,200 companies. We have areas where we are very good and others where there is potential for expansion. Overall, I would describe us as a solid, well-developed ecosystem.

In your opinion, which PropTech segments are the most advanced?
Platform solutions in the broad sense, i.e. not just marketplaces such as data platforms, service platforms and ecosystems. This is where we see the greatest professionalization and maturity.

What kind of startups do you think will be the first to disappear and why?
Startups that only cover one isolated process step and cannot be integrated. Real estate companies need solutions that combine several process steps or can be easily integrated into existing systems. Silo products will hardly be viable in the future, neither technically nor economically.

Where do you see obstacles to digitalization in Swiss real estate companies?
The industry is highly fragmented. A company with 20 or 30 employees is already considered large. Many have neither internal IT skills nor a budget for larger digitalization projects. This also means a lot of work for providers. Instead of five major customers, you have hundreds of small ones. This structure slows down digitalization.

Which three megatrends will shape the PropTech landscape in the coming years and why?
Clearly data, sustainability and artificial intelligence. Data is the basis for every well-founded decision. Sustainability is not possible without data, especially with ESG, and AI is a trend that is highly polarizing. However, the impact only comes when the data quality and organization are right.

Are there technologies that have long been ready for the international market but have not yet arrived in Switzerland?
No. Everything that is internationally relevant is generally available in Switzerland in high quality. The challenge lies not in the technology, but in its consistent application and integration.

What does it take for administrations to become more open to technology and more courageous?
A clear digitalization strategy, because without a target image, any tool introduction is pure actionism. Companies need to understand that digitalization is a cultural and transformation process and not an IT project. Employees need to be supported and motivated, especially in an environment with high staff turnover.

How can you recognize the quality of a PropTech company?
The team. The key question is: do the people have the skills, perseverance and openness to really implement an idea? Markets change, products change and only a strong team can support this change. The team is therefore more important than the idea.

Which approaches manage to map the entire life cycle?
Not individual all-in-one products, but integrated cycles. When condition analysis, refurbishment planning and facility management are linked via clean data flows, for example, a genuine life cycle is created. Integration is the key.

In which phases do you see the greatest untapped potential?
Clearly in the area of construction technology. How we build, what materials we use, how planning and construction processes work – major changes are imminent here. We are already much further ahead in terms of operations and marketing.

Are the regulatory framework conditions more of a driver or a brake?
Startups want fewer hurdles and some things have been improved. However, issues such as the tax treatment of founder shares remain complex. Overall, we should reduce regulation. Innovation does not come from new regulations, but from entrepreneurial freedom.

What political steps would be necessary for the sector to digitalize faster?
I am clearly in favour of less government. The real estate industry will digitize itself for economic reasons. If companies can win more mandates and improve quality with the same employees, they will use digital solutions. Without any new political requirements.

What cultural and organizational stumbling blocks do you encounter most often?
The misconception that digitalization is a tool issue. In reality, it’s about processes, collaboration and roles. Many underestimate the cultural change. High staff turnover also makes it difficult to establish a digital culture.

Which developments will irreversibly change the industry?
Anything that simplifies or automates repetitive tasks and thus creates productivity gains. Whether you call this digitalization or efficiency enhancement is irrelevant. AI is one component, but not the only one.

If you had to found a new PropTech today, in which area would it be?
Probably in the area of marketing, because there is a lot of creative potential there. At the same time, I would like to see existing solutions grow more strongly. We have enough good providers, we don’t necessarily need any more.

Where will PropTech Switzerland be in 2030?
PropTech will be indispensable, but not in the spotlight. It’s not “sexy” like climate or energy issues. PropTech doesn’t make the headlines, but it ensures that the industry functions digitally, data-based and efficiently. This is precisely why PropTech will play a central role in the long term.

Editor: Arun Banovi, Photo: Courtesy of