The real estate industry was once considered a laggard in the adoption of digital technologies. However, in recent years, the rate of digital transformation in the sector has been particularly energetic. Proptech companies have been some of the most successful and rapidly growing startups in the world, attracting massive amounts of venture capital.
Besides the level of seed capital, the sheer scale at which technology is being adopted in real estate became apparent in 2018, when Proptech was reported to have grown at a rate of 82%, dwarfing even other rapidly expanding tech-driven innovations, such as those in Fintech.
This already vigorous growth has been further accelerated by the aftermath of the Covid-19 pandemic. With the vast majority of the world’s population sheltering in self-quarantine, securing buildings from the threat of contagion became a global priority.
In addition, social distancing norms meant that onsite facilities management teams were limited in their size. Those in the industry that had already taken the digital plunge were able to deliver on the enhanced requirements and adherence to protocols much better, than real estate operations that were stuck in legacy models.
In particular, data-driven operations, and the adoption of centralised open protocol digital platforms, which unify operations at a portfolio-wide scale, have come to the fore. In fact, the operational advantages have been so stark and diverse, that this new intelligence-led model is set to become the industry standard, moving forward. Some of the most compelling operational enhancements include:
- IoT-enabled agile operations: The ability to leverage real time operational data, across previously siloed systems, has made it possible for building owners and managers to optimise the entire array of desirable outcomes concurrently. IoT networks now make it possible to gain complete and granular transparency into an entire real estate portfolio, enabling informed decision making.
- AI-derived actionable insights: AI analytics gives all real stakeholders – including owners, facilities managers, workforces and tenants – access to contextualised inferences, which can be used to achieve sustainability, system wide efficiency, personalised occupant experiences, safety and optimal ROI, at the same time.
- Enhanced compliance: The real estate sector, which was already adapting to more stringent sustainability norms, has needed to conform to unprecedented protocols, in the wake of the global pandemic. Digital technologies have played a key role in ensuring verifiable and strict adherence to all mandated regulations.
- Touchless user experiences: With commonly used surfaces being a major source of the spread of the Covid-19 contagion, touchless comfort controls have played a huge role in enhancing tenant confidence. App based intuitive interfaces have enabled a seamless transition to this new normal.
- Responsive HVAC management: The airborne vector of the contagion’s spread is significant. Digitally monitored and implemented remote HVAC management has ensured that standards are strictly enforced, without the need to deploy onsite staff.
2021 will see these operational models continue to become more commonplace – even if the expected and effective vaccines for the Covid-19 virus are rolled out globally. The pandemic has certainly added a degree of urgency to the adoption of data-driven open protocol systems in real estate.
However, enhanced returns, unprecedented system efficiencies, and exceptional end-user experiences, already make for a thoroughly compelling argument. 2021 will be a year of furthering the digital transformation in real estate, as the industry conforms to the requirements of the new normal.