What does digitalisation mean for the real estate sector?
The digitalisation of real estate is an opportunity arising in an era when digital development is at its peak, for example, the Internet of Things, big data and, of course, AI. Digitalisation of the real estate sector builds on this. New technological solutions are emerging, creating opportunities for wider application of data or taking building management to the next level. For instance, the construction industry can no longer do without BIM (Building Information Modelling), as it ensures that all required data are available in a well-organised way during the (re)construction of a building.
Research among German real estate-related companies shows that 90 percent of participating companies believe that automated processes are crucial for their survival. If you want to introduce new technologies yourself, this can be done incrementally or by introducing a test or trial period. This will make it possible to steadily familiarise staff and other (building) users with digital changes.
The benefits of digitalising property
The possibilities that real estate digitalisation has to offer are impressive. As a building owner or property investor, you can benefit greatly from what is available in the current day. By investing in digitalisation, you have the chance to realise major improvements in efficiency, such as cost savings through energy efficiency and flexible building management systems. Digitalisation can also contribute to an increase in building value in several ways and makes it easier to attract new tenants. Moreover, it gives you the opportunity to respond to ESG (Environmental, Social & Governance) requirements, which are playing an increasing role within the real estate world. Thus, digitalisation can contribute to improved ESG scores.
6 examples of digitalisation in the real estate sector
Applying the latest digital technologies sounds all good and well, but what does that process look like? Here are some inspiring examples of innovations in the real estate world.
1. Application of big data
Data generated automatically via a sensor, digital clicks or an instrument is called big data. Applying big data in the digitalisation of real estate has great benefits in the long run. For example, using sensors that display the conditions of the building ensures that you know very early on when maintenance is needed.
2. Artificial intelligence
The use of artificial intelligence (AI) disrupted digitalisation in the real estate sector. Both photos and texts can be improved using AI and better tailored to the target audience. Moreover, AI can be used in optimising the asking price. It can analyse the factors - such as location, size or amenities in the neighbourhood - that affect the market value of the building.
3. Blockchain technology
In the battle to digitalise real estate, blockchain is worth considering. It allows you to record transactions without the need for a third party to be involved. The immutable and uncrackable chain of information that is blockchain can thus greatly speed up the process of signing contracts, for example.
4. Digital twin
In digital twin technology, a digital copy of a process, object or service is created, then data from the real world is replicated. An example of this is ecoBuilding, which additionally uses AI. This tool predicts how much energy will be needed to achieve an optimal and healthy indoor climate in a room. Using ecoBuilding can save costs and energy and reduce CO₂ emissions, without any human intervention.
5. Smart buildings
The digitalisation of real estate also includes Smart Buildings, which can form part of Smart Cities. Real estate that incorporates the Internet of Things and smart technologies will undoubtedly get a higher ROI in the future. Real-time monitoring to save energy or controlling the heating system with your smart phone are examples of this.
6. Drones as a marketing tool
With the advent of drones, photographs of properties in the real estate sector are being taken to the next level. With a drone, you capture unique images of your building from the air. It captures the immediate surroundings and provides an extra dimension that comes in handy when renting or selling the property. If you want to go a step further, introduce a virtual tour, or virtual reality (VR), to show potential tenants or buyers around the building in an interactive way.
Digital transformation: how to approach it?
The digitalisation of real estate is moving fast: by 2026, 115 million buildings worldwide will use smart technology (versus 45 million in 2022, Juniper Research), but how and where do you start? And how do you get everyone on board? Our whitepaper ‘How to accelerate digital transformation’ tells you all about it. We discuss the importance of continuity in your business and how to plan and manage a digital transformation. We also give tips on how to get the maximum benefits from this impactful transition.
Digital transformation of your property portfolio with Priva
Start digitalising your real estate today and take the first step towards energy and cost savings and comfort improvements. Priva's cloud solution ecoBuilding is essential in this respect. The tool uses AI and predicts how much energy you need to achieve an optimal and healthy indoor climate and is self-steering. Request a demo of ecoBuilding or read more about digital services in the cloud in our whitepaper ‘How digitalisation helps achieve Net Zero goals’. We look forward to hearing from you!
