Real estate managers oversleep digitisation

In a study by Ernst & Young Real Estate, 97 percent of real estate asset managers say that digitisation has a significant impact on their business models. The majority of real estate managers want to improve their products and services through the digitisation process and have so far invested particularly in data management, reporting and property management.

According to Dietmar Fischer, who is responsible for the study at EY Real Estate, the most urgency and the greatest impact on asset managers business models are in tenant and property data management, followed by the still relatively new digital process documentation. Networking with start-ups and research facilities from the digital sector is not pursued by many managers. Only a few cooperate with these (17%) or plan to do so (15%). Also, 40 percent do not want to participate in the prop-tech sector.

Nearly half (43%) of the 35 surveyed companies are already working on digitalisation in selected areas. Another 40 percent are still in the planning phase. While no company wants to cut its budget for digitisation in the next three years, 70 percent want to increase it.

While the asset managers recognise the importance of digitisation and provide sufficient financial resources, they lack consistency: Not even every fifth company is pursuing an overarching strategy. Unclear responsibilities (48%), lack of focus (35%) and lack of agility in decision-making processes (30%) are criticised.