The sluggish digitization of the real estate industry - reasons and opportunities
Last year, the real estate industry was once again increasingly concerned with the inevitable digitalization, but this has been a long time coming. The pushing effect by Corona has only sensitized for the necessity. Digitalization will increasingly accompany the coming change, and those who do not fully embrace the opportunities will be left behind in the medium term.
Process optimization in the real estate industry creates added value
For years, companies have been demanding better linking of IT systems, faster and simpler communication channels and simpler structures. Digitalized and optimized processes are also much in demand in the areas of home office and mobile working - especially with regard to secure data processing and transmission. A large proportion of real estate experts are convinced that digitalizing work processes can reduce costs, relieve staff and significantly increase overall satisfaction. They also see a competitive advantage over less progressive companies - but in terms of readiness for implementation, the market is still habitually sluggish.
Reasons for slow progress of digitalization in the real estate industry
The limitations of the lack of digitalization in the real estate industry are not yet acutely drastic enough for a change to seem essential. In addition, the pandemic has led to major uncertainties such as planning difficulties. Future-oriented projects have been put on hold for the time being. Breaking away from the old to introduce new technologies, when everything still works, requires courage and a visionary approach. Data about what happens in buildings is collected and hoarded in heaps without being meaningfully evaluated. Complex proprietary ecosystems without a central software solution to process them become unmanageable data corpses instead of valuable information. There is still a lack of broad understanding of the urgency and often the already existing possibilities of the technology. People still tend to rely on references and look at how other companies in the same sector are doing rather than taking the first step themselves. Many are not even aware of how far the possibilities have progressed in the meantime and how easily we can transfer even large volumes of data in a structured manner and ensure overarching collaboration between IT systems.
The real estate market must think ahead and use interfaces
Linking IT systems is one of the most urgent requirements for the real estate market. Here, there are already solutions that ensure secure and reliable transfer and processing of data by means of ERP interfaces and can be used together with existing systems - for example, the Allthings platform. In order to obtain valuable insights, a lot of data must be collected and evaluated in a target-oriented manner. Compared to other markets, however, implementation in heterogeneous markets such as the real estate industry is more complicated.
"Real estate is very different in terms of management and emerging needs, and here many individual solutions have to be created and adapted for each customer. PropTechs now have the responsibility to deliver appropriate approaches. With the right measures, proven successes can be created in all areas - sustainability, quality of life and profitability - it just takes a willingness to embrace new things and move away from long-maintained patterns. That's why we have customized offerings and a modular app," said Stefan Zanetti, founder and chairman of the board of Allthings.
The younger generation's attention to these topics has long been apparent, their digital understanding firmly established - if you want to succeed, you have to prepare. One ray of hope: the "digital natives" are entering the industry and increasingly breaking up old structures. More and more real estate companies are relying on proven and easy-to-integrate cloud solutions and creating an understanding of digital necessities, and even the "old hands" of the scene are increasingly engaging with the new possibilities. Those who seize the opportunities early on will secure a place at the top.
Our PropTech Year in Review 2020. The impact of the Corona crisis and a look into the future of the real estate industry!