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Digital technologies and real estate

Sanjeev Bhatia

February 03, 2021

After the real estate sector was lagging behind in terms of relying on digital technologies compared to others, the situation has finally begun to change, as the digital transformation witnessed by the real estate sector in recent years is exceptional by all standards, and emerging real estate technology companies have emerged that have achieved some of the highest growth rates. And the fastest in all parts of the world, to attract the largest share of investment capital.

In addition, the huge amount of technologies dependent on the real estate sector became evident in 2018, in conjunction with real estate technology companies recording a distinctive growth rate of 82%, surpassing that of many companies based on technical innovations, such as financial technology companies.

The pace of this remarkable growth accelerated as a result of the repercussions of the "Covid-19" crisis, as securing buildings from the risk of the virus spreading in them has become a major priority in all countries of the world, in light of the commitment of most of the world's population to quarantine.

Real estate companies that relied on digital technologies from the beginning were able to meet the evolving requirements, and work according to the new procedures, to perform better than their counterparts that continued to carry out their operations using traditional methods.

It can be said that data-based operations and the adoption of centralized, open-protocol digital platforms, which unify the operations of the entire company's business portfolio, have become a fundamental need in the new reality.

Some of the more distinct operational improvements include some points:

• The ability to make use of operational data in real time has allowed improving all desired results simultaneously. Internet of Things networks also allow complete transparency and reading of detailed data regarding the business portfolio of real estate companies, which allows informed decisions to be made.

• AI analyzes will allow stakeholders in the real estate sector, including owners and facility managers, to access contextual inferences that will achieve sustainability, increase the efficiency of its systems, provide customized accommodation experiences, and improve the return on investment.

Improving compliance: The real estate sector, which was already beginning to adapt to strict sustainability standards, faced new challenges, represented by the need to adhere to unprecedented new protocols following the repercussions of the Covid-19 crisis, while digital technologies played a prominent role in ensuring compliance Complete all established rules and regulations.

• Non-contact user experiences: The contactless controls played a prominent role in enhancing the confidence and sense of security of the tenants. The digital interfaces of electronic applications were also an important factor in reaching this new reality.

• Rapid response in managing HVAC systems: The digital management of HVAC systems remotely ensures compliance with safety standards completely, without the need for personnel on the ground.

The year 2021 will witness an increase in reliance on these operational models, even after the vaccines for "Covid-19" are distributed globally, meaning that this crisis has shed more light on the need to implement open-protocol and data-based systems in the real estate sector, as well as the benefits that these systems carry It is about enhancing industry revenues, improving the efficiency of its systems, and providing exceptional end-user experiences.

In conclusion, 2021 will be the year of consolidating the digital transformation in the real estate sector, in parallel with the sector's adaptation to the requirements of the new reality.

CEO of "Netex Global"

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