The Dawn of Digitalization in Real Estate
THE REAL ESTATE SECTOR IS THE LARGEST AND MOST VALUABLE ASSET CLASS IN THE WORLD, AS IT APPEALS TO A BROAD RANGE OF INVESTORS AND IS SEEN AS A RELATIVELY LOW-RISK ASSET. UP UNTIL NOW, IT HAS MANAGED TO GET BY WITH MINIMAL INNOVATION, BUT INERTIA AND COMPLACENCY WILL PROVE DAMAGING IN THIS DAY AND AGE.
New technologies and digitalization are reshaping and reimagining all sectors. They have spread into the real estate industry, creating an emerging “Realtech” sector, bringing greater efficiency to the way real estate is procured, developed, managed and utilized.
Everyone involved – from agents to developers to investors to property managers – will need to understand the latest in technological innovation, and implement strategies to integrate those advancements into their projects and businesses in order to maintain a competitive advantage.
People and technology are becoming increasingly inseparable. Innovation in other industries continues to power ahead, heightening consumer expectations of how they engage with all aspects of their lives, including their relationship with the built environment. This has certainly put more pressure on the real estate sector to innovate. Delivering an excellent customer experience is therefore crucial to staying ahead of the game. For instance, virtual reality and artificial intelligence are being introduced to provide online simulations, which save precious time. Cost-effective beacon technology has reshaped and facilitated property marketing. We also see fintech startups offer online investment platforms and on-demand financial solutions.
Global environmental awareness and regulatory measures dictate the trend of sustainable architecture. New European regulations for the built environment sector that come into effect in 2020 will reinforce that trend. The urbanization landscape is changing drastically due to growing population migration into urban areas. Related real-estate challenges, such as infrastructure, provision of services and the need for greater data management efficiencies, have to be addressed, leading to the rise of smart cities and the advent of a fully intelligent future.
Smart buildings are at the center of this vision, providing not just a roof, but also the information infrastructure to make a truly intelligent world possible and contribute to global sustainable goals. Smart buildings will soon become the standard, with features that include optimized cooling and ventilation systems, programs matching occupancy patterns to energy use, proactive maintenance of equipment, and dynamic power consumption connected to the community's smart power grid – intelligence from the beginning of the design phase right through to the end of a building's life.