Enhancing sustainability and technology in real estate

The real estate sector should consider the benefits offered by sustainability and digitalization, according to experts at Deloitte. Especially in the commercial sector, profound changes are taking place from which new growth opportunities may arise. The next 12-18 months will see an important repositioning phase for companies operating in this area. To remain competitive, they will have to make a choice. Real estate resilient to change.

Deloitte's 2024 real estate forecast report

Shows that concerns about the state of the economy are likely to remain paramount in the decision-making process of global real estate leaders through 2024 and beyond. Therefore, it is necessary to find a solid foundation for the future. Deloitte suggests organizing more efficient and sustainable businesses by forecasting real estate portfolios and reducing risk, creating value through environmental and decarbonization initiatives and tax incentives.

The opportunities offered by technology also play an important role. In particular, sustainability is seen as a tool for preserving the value of real estate over time. Investors are increasingly paying attention to the sustainability of real estate. According to the report, sustainability-criteria properties in the U.S. today are considered prime space and offer rental yields that are 31% above average.

There are risks, however.

Technology can help meet future challenges

The Deloitte report shows that 61% of real estate owners and investors still rely on outdated technology infrastructures. And while nearly half of them plan to implement modernization, successful implementation is often difficult and not immediate. Estimates suggest that up to 73% of corporate data in the real estate sector remains unused. This means that the industry can make better use of these valuable insights. On average, 60% of companies still use spreadsheets for reporting, 51% for real estate valuation and cash flow analysis, and 45% for budgeting and forecasting.

This lag can limit the ability of real estate companies to communicate internally, causing redundancy and inefficiency, further slowing the flow of data within the organization. "In 2024, it will be important to pay attention to technology investments," says Gianturco. - "Especially now that companies are strengthening their balance sheets to protect against potential financial instability, any delay due to inefficiencies in the underlying data can cause avoidable difficulties." The examiner concludes: "In the future, companies must be more agile and able to make real-time decisions based on available data. This can be a tool to increase the competitiveness of real estate groups and to gain market positions.".