Real Estate Technology
Article | July 12, 2022
The belief that green properties bring multiple benefits for both residents and developers is becoming universal. The real estate buyers are realizing the integral role played by the green buildings in minimizing carbon emissions and contributing toward one of the biggest global agendas – Climate Change. Across the UAE, some landlords are evaluating the cost and the benefits of making their portfolios greener to meet the expectations of the property buyers as well as the tenants who are becoming more environment-friendly.
Rising international focus on climate change, Conference of the Parties (COP26) summit and UAE’s net-zero initiative to minimize emissions and pledging to invest almost $165 billion in clean energy by 2050 are the other major reasons for the landlords to construct green buildings.
Covid-19 has created an urge for employee safety to ensure they feel comfortable coming to the office. To take employee safety to the next level, corporations are choosing green properties to prioritize employees’ well-being and adapt to their occupational strategies and achieve their sustainability goals.
What is a Green Building?
The World Green Building Council (WGBC) defines a green building as – “a building that, in its design, construction or operation, reduces or eliminates negative impacts, and can create positive impacts, on our climate and natural environment.”
Some of the features suggested by WGBC which make a building green include –
Efficient use of energy, water, and other resources
Use of renewable energy, such as – solar energy, pollution, and waste reduction measures, and the enabling of re-use and recycling
Good indoor environmental air quality
Use of materials that are non-toxic, ethical, and sustainable
Consideration of the environment in the design
Construction, and operation
Consideration of the quality of life of occupants in design
Construction, and operation
Design that enables adaptation to a changing environment
Exponential Rise in the Demand for Greener Properties
There has been a huge rise in the demand for greener and energy-efficient properties not only in the UAE but across the Middle East. As per the Knight Frank – 2021 survey – proximity to green space and good air quality topped the list of location features and are more important to home buyers in the Middle East than their global counterparts. Half of the respondents cited the energy efficiency of their next home as being a ‘very important‘ issue, compared to 42% of global buyers.
There has been a rising demand for green and energy-efficient properties in the UAE. The region is at the pinnacle in the Middle East in the national concentration of sustainable buildings and stands at the 14th spot in the world with 869 green-rated buildings, according to the 2nd edition of Knight Frank’s (Y)our Space report – 2021 which surveyed almost 400 businesses worldwide on their workplace strategies and real estate needs.
This sends a strong signal to the developers and planners to embrace building green properties to attract eco-friendly homebuyers in the UAE.
Reasons for Rising Demand for Green Properties
Here are the top 7 reasons for the rising demand for Green Properties in the UAE
1. Increasing Awareness
The last decade has witnessed a colossal rise in the awareness among the UAE real estate developers and homebuyers about sustainable construction practices and the adverse effects of climate change, rising energy consumption, and carbon emission on their health and life which has significantly increased the demand for greener properties.
The rising awareness about the advantages of green buildings is very evident from the leading studies conducted recently. The research conducted by EcoMENA in 2021 titled – ‘Green Building Trends in the Middle East’ reveals that in the last decade, green building design has become a top priority of real estate developers across the Middle East. The number of LEED-registered buildings has increased rapidly across the region, from 623 in 2010 to more than 2500 in 2020. UAE is ranked among the top 10 countries that hold LEED certifications in the world with Dubai ranked 3rd in the list of cities having the highest number of LEED-certified buildings. UAE has more than 600 LEED-certified projects.
2. Supportive Government Policies
UAE has launched the ‘Net-Zero by 2050 Strategic Initiative’ to reduce carbon emissions and will invest over AED 600 billion in renewable energy to minimize carbon emissions and move the nation towards cleaner energy.
Other initiatives launched by the UAE to reduce carbon emissions which will increase the sales of green properties include – UAE Vision 2021, the UAE Centennial 2071, and the UAE Energy Strategy 2050, which sets a 50% target for clean energy in the country, among others. The UAE government has already established several sustainable development goals which serve as a guiding principle for most upcoming real estate projects in the region.
3. Lower Construction & Operational Cost
Research conducted by the World Business Council for Sustainable Development (WBCSD) reveals that the cost of installing green building features and technologies is significantly overestimated. Many developers perceive that the upfront cost of a green building is, on average, 17% higher than the original cost of a similar traditional building, however, that’s not true.
The research by the U.S. Green building Council (USGBC) reveals the initial cost of a green building is only 2%-3% higher than its non-green counterpart. Moreover, green buildings consume 25%-35% less energy than non-green buildings and have 14% less operation and maintenance costs than their traditional counterparts.
Modern property owners also prioritize renting or leasing green buildings or apartments due to their cost benefits. Green buildings also allow developers to save 20% of the initial construction cost annually by reducing energy consumption. Furthermore, green buildings allow developers to complete large-scale green projects at a much larger scale resulting in more revenues and business expansion.
Using incentive technology such as Virtual Power Plants (VPP) combined with an onsite solar asset will further allow real estate developers to reduce the operational cost and utility cost and explore new models of maximizing income outside of increasing rent and making their properties more attractive for eco-friendly homes buyers.
4. Lower Rents & Service Charges
Green properties are a win-win situation for every stakeholder. Due to their lower construction cost and energy consumption, green buildings have minimal operational costs. This is indeed good news for the homeowners and tenants as lower operational cost of the building leads to a reduction in their energy bills, service charges, and rents.
The lower service charges and rents often result in higher resident satisfaction and occupancy rate for the landlords and developers.
5. The rise in Environment-friendly Buyers
Rising awareness about the adverse impact of emissions on the health of humans as well as on the environment has attracted a number of homebuyers toward green properties. This is encouraging real estate developers to construct more green properties to foster quick sales.
Two years ago we had to convince property developers to go green and think about efficient energy. The majority didn’t know what ‘green’ meant and assumed there was an extra cost attached. Now developers want to go green and some are achieving Leadership of Energy and Environmental Design (LEED) certification, an internationally recognized green building rating system. Many large developers are creating their own green design guidelines to be followed by smaller developers building on their plot of land.”
Khalid Bushnaq, CEO of Energy Management Services (EMS)
There has been an exponential surge in buyers prioritizing green properties as they support a cleaner environment for future generations.
6. Investors Prioritizing Greener Properties for Letting & Sales
There has been a rise in the investors and businesses prioritizing the green credentials of a property while making their purchase decision. This will indeed spur their saleability and rentability in the coming days. To cater to the demand of modern and environment-friendly buyers, real estate developers are coming up with greener properties and are evaluating the cost and the benefits of greenifying their portfolios.
7. Rising Sustainability Concerns
There have been rising concerns about sustainability among both residential & commercial clients. Corporates across the globe are showing great interest in going sustainable and prioritizing sustainable buildings for their offices.
According to the 2nd edition of Knight Frank’s (Y)our Space report, “40% of firms have set a net-zero carbon target and, of those, 77% are aiming to achieve this by 2030. 87% of firms surveyed had less than half of their current global real estate portfolios either ‘green’ or ‘sustainable’.
Rising sustainability concerns among the buyers will accelerate the sales and rents of the green properties and will play a crucial role in minimizing the emission rate of the UAE.
Summary
Here is the summary of the article –
There has been a rise in the attractiveness of greener properties among buyers across the UAE to reduce carbon emissions and move towards a healthy lifestyle.
Climate change, COP 26, and UAEs investment in clean energy by 2050 have been the major drivers in raising awareness of green properties
Along with the residential, the commercial sector is also prioritizing moving their offices to green properties to prioritize employee’s safety and adapt to their occupational strategies
A Green building is a building that, in its design, construction or operation, reduces or eliminates negative impacts, and can create positive impacts, on our climate and natural environment.
The Knight Frank – 2021 survey on Middle East buyers reveals that proximity to green space and good air quality topped the list of location features. Half of the respondents considered the energy efficiency of their next home to be a ‘very important’ issue, compared to 42% of global buyers.
UAE is ranked 14th in the world with 869 green-rated buildings
The top reasons for the rising demand for green properties are as follows
Increasing awareness
Supportive government policies
Lower construction & operational cost
Lower rents & service charges
Increase in environment-friendly buyers
Investors Prioritizing Greener Properties for Letting & Sales
Rising sustainability concerns among the buyers
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Real Estate Technology
Article | July 21, 2022
Explore the latest trends, tools, and strategies for optimizing data-driven real estate asset management services and achieving long-term success with a comprehensive guide to improving business ROIs.
Contents
1 Importance of Data-driven Model for Real Estate Asset Management
2 Seven Steps to Measure Data-driven Asset Management
2.1 Defining the Purpose and Scope
2.2 Identifying the KPI
2.3 Determining the Sources
2.4 Collecting and Cleaning Data
2.5 Data Analysis
2.6 Performance Evaluation
2.7 Continuous Monitoring
3 Effectiveness Metrics for Data-Driven Asset Management
3.1 Occupancy Rate
3.2 Operating Expense Ratio
3.3 Tenant Retention Rate
4 Conclusion
1. Importance of Data-driven Model for Real Estate Asset Management
As real estate technology continues to develop and become more cost-effective for both new and existing business structures, and as collaboration platforms, sensors, and smart devices continue to advance, the amount of data produced by commercial real estate assets is growing exponentially. This data can give real estate market participants like investors, asset managers, property managers, and tenants a competitive advantage and help them avoid disruption if they develop data-driven services and new business models centered on the specific needs of users, owners, or the property itself. However, only a concerted effort by all real estate stakeholders including builders, investors, owners, tenants, and service providers towards data-driven real estate asset management can optimize data to generate insights that improve performance and profitability.
The significance of data-driven models in real estate asset management is growing as the models enable more informed decision-making and more efficient operations by collecting and analyzing data from various sources. Real estate asset managers can gain a greater understanding of the performance of their assets and make more informed management decisions. This can result in increased efficiency, profitability, and tenant satisfaction.
2. Seven Steps to Measure Data-driven Asset Management
Measuring the effectiveness of data-driven real estate asset management services enables businesses to evaluate their current strategies and identify areas for improvement in the services they offer By following these steps to measure asset performance, processes, and activities, businesses can gain insights and make data-driven decisions to optimize performance and maximize returns.
2.1 Defining the Purpose and Scope
The process of measuring data-driven real estate asset management services begins with a clear definition of the purpose and scope of the measurement. It involves conducting a comprehensive review of the business goals as well as identifying specific objectives and purposes for the strategies to develop a well-defined purpose and scope for measuring the effectiveness of asset management services. It helps to ensure that the real estate asset management services are aligned with the broader business strategy.
2.2 Identifying the KPIs
Defining the purpose and scope of data-driven asset management is followed by identifying KPIs to measure success. It requires a clear understanding of critical areas of asset management and selecting quantifiable measures to define success factors and track progress. Choosing the right KPIs provides valuable insights into asset performance, enabling real estate executives and managers to make informed, data-driven decisions to optimize performance and maximize returns.
2.3 Determining the Sources
Identifying the data type, including financial, property, market, and tenant, is essential to determine the sources for evaluating data-driven asset management services. After establishing the data requirements, the sources, such as internal systems and databases, third-party data providers, and publicly accessible data sources, are determined with data compliance and security as the determining factor. Determining sources ensures that the asset management data is trustworthy, current, and accurate, which impacts subsequent decision-making. This step provides the groundwork for data-driven decision-making.
2.4 Collecting and Cleaning Data
Data collection and cleansing are essential for measuring data-driven asset management services. The collected data must be precise, exhaustive, and dependable for subsequent analysis and decision-making. The step involves validating the data for completeness and accuracy, eliminating errors, inconsistencies, and duplicates, and standardizing the data across all sources. The process identifies improvement opportunities, optimizing real estate asset management services for maximum efficiency and profitability.
2.5 Data Analysis
Data analysis plays a critical role in measuring data-driven asset management services. After finalizing the data collection and cleaning step, the data is analyzed using various techniques such as statistical analysis, predictive modeling, and data visualization. These techniques help to identify trends, patterns, and relationships that provide insights into asset performance. Data analysis provides a more profound understanding of the performance of real estate assets, leading to improved efficiency, increased profitability, and enhanced tenant satisfaction.
2.6 Performance Evaluation
Evaluation of data performance to comprehend improvements in the data-driven asset management services starts once the data is analyzed. The performance evaluation step involves comparing actual results to the established KPIs to determine whether the goals are being met or whether there are areas for improvement. It aids in identifying deviations from predetermined objectives and prompts and taking required corrective actions to realign with the business strategy. In addition, this step facilitates identifying improvement opportunities and ensures that real estate asset management services are optimized for maximum efficiency and profitability.
2.7 Continuous Monitoring
Measurement of data-driven real estate asset management services ends with continuous monitoring. To ensure asset management strategies are working, continuously tracking and evaluating KPIs from earlier steps while identifying underperformance and improvement opportunities is involved in the last stage. Operation managers can make data-driven choices, identify risks and opportunities, and optimize asset management strategies for efficiency and profitability by monitoring real estate asset performance. In addition, it ensures that real estate asset management services remain effective over time and can adapt to market changes to maintain a competitive edge.
3. Effectiveness Metrics for Data-Driven Asset Management
Effectiveness metrics for data-driven asset management services are the KPIs used to measure the success of data-driven strategies. These metrics help real estate executives and managers evaluate the performance of their assets and make data-driven decisions for maximum efficiency and profitability.
3.1 Occupancy Rate
The occupancy rate is an essential metric in data-driven real estate asset management. This metric indicates the proportion of a property's rental units that are occupied at present. A higher occupancy rate suggests the property performs well, as more tenants occupy the units. Therefore, this metric can be used by real estate businesses to gauge the efficacy of their digital asset management strategies.
3.2 Operating Expense Ratio
The operating expense ratio is used to evaluate a property's operational efficiency for data-driven asset management. It is calculated by dividing the operating expenses incurred by the property by the total rental income generated. It helps measure the proportion of income consumed by the expenses, such as maintenance costs, utilities, and commercial property management fees. A lower operating expense ratio indicates better cost control and efficient use of resources, resulting in increased profitability for the real estate asset.
3.3 Tenant Retention Rate
In real estate asset management, the tenant retention rate is an essential metric that measures the proportion of tenants who choose to renew their lease agreements. It is an essential indicator of tenant satisfaction and the quality of property management services. A higher tenant retention rate indicates that tenants are satisfied with the property and management, resulting in a stable tenant base, lower vacancy rates, and decreased costs associated with tenant turnover.
4. Conclusion
The significance of utilizing data-driven models for real estate asset management is rising due to digital real estate asset management, technological advancements, and the expansion of collaboration platforms, sensors, and intelligent devices. To gain a competitive edge and avoid disruption, stakeholders in the real estate industry must prioritize the development of data-driven services and innovative business models that cater to the unique needs of users, owners, and the property itself. In addition, the use of data-driven models can also lead to more efficient and informed decision-making, reducing costs along with increasing profits and improving real estate portfolio management.
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Real Estate Technology
Article | July 25, 2022
Today’s housing market is full of unprecedented opportunities. High buyer demand paired with record-low housing inventory is creating the ultimate sellers’ market, which means it’s a fantastic time to sell your house. However, that doesn’t mean sellers are guaranteed success no matter what. There are still some key things to know so you can avoid costly mistakes and win big when you make a move.
When inventory is low, like it is in the current market, it’s common to think buyers will pay whatever we ask when setting a listing price. Believe it or not, that’s not always true. Even in a sellers’ market, listing your house for the right price will maximize the number of buyers that see your house. This creates the best environment for bidding wars, which in turn are more likely to increase the final sale price. A real estate professional is the best person to help you set the best price for your house so you can achieve your financial goals.
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Real Estate Investment, Asset Management
Article | May 25, 2023
Commercial real estate events assist professionals in enhancing asset management by gaining valuable insights, adopting advanced technologies and effectively navigating current industry landscape.
Commercial Real Estate asset management is dynamic, complex, and constantly evolving. To constantly change with the latest trends and technologies, professionals need access to the best resources and experts. However, staying informed and up-to-date can be challenging, particularly for those new to the industry or having difficulty managing the business. Attending conferences and trade shows can be incredibly valuable and help overcome the challenges of managing assets in real estate. The events from May 2023 to January 2024 provide a unique opportunity to learn about emerging technology, sustainability and climate technology, and property and investment tips. In addition, by participating in workshops and attending conferences led by top experts and networking with industry leaders, one can navigate the current scenarios and gain valuable insights to better manage their commercial real estate assets.
10 Upcoming Commercial Real Estate Asset Management Events
1. Realcomm | IBcon 2023: Past, Present and Future of Real Estate Technology
June 13-15, 2023 | Las Vegas (USA)
Realcomm and IBcon 2023 have formed a prominent group of commercial real estate executives and intelligent buildings experts worldwide to serve on their advisory councils to provide exceptional education on the most important issues affecting the commercial and corporate real estate industries. The event's agenda will cover various themes: intelligent buildings, smart workplaces, digital transformation, sustainability, cybersecurity, and more. It is a once-in-a-lifetime opportunity for real estate and asset management professionals to learn from the foremost experts in their field, expand their knowledge and network, and advance their professional development.
2. MRI Ascend 2023
October 24-27, 2023 | Chicago (Illinois)
The MRI Ascend 2023 conference for all real estate professionals seeking to stay abreast of the latest industry insights and master MRI's product offerings. This event presents an exclusive opportunity for attendees to learn from prominent industry leaders, earn valuable CPE credits, and gain insights about the industry's current scenario and trends. In addition, the conference gives a platform to engage with other MRI users, real estate experts, and MRI's partner ecosystem members, including numerous sponsors, in various networking opportunities. The conference's agenda comprises informative sessions, expert-led workshops, and engaging panel discussions, providing attendees with a comprehensive understanding of the real estate technology trends.
3. REAL PropTech Conference 2023
September 7-8, 2023 | Frankfurt am Main (Deutschland)
The REAL PropTech Conference is a highly anticipated event for the real estate and construction industry, offering an overview of GreenTech, ConTech, and PropTech to C-suite representatives, decision-makers, and industry experts. Property managers, portfolio managers and other executives in the industry can gain cross-industry insights, engage with experts, and explore solutions to industry challenges. The conference will offer intensive, creative topics featuring agile methods in a confidential setting, allowing for a unique learning experience. Additionally, a hackathon will enable participants to develop practical and innovative solutions and win prize money of 5,000 euros. This event will be a valuable experience for industry professionals seeking to stay up-to-date with the latest trends and drive the industry forward.
4. Inman Connect New York 2024
January 23-25 2024 | Hilton (New York)
Real estate professionals looking to enhance their knowledge, build relationships, and grow their businesses can benefit from attending the upcoming Inman Connect New York event. The three-day conference brings together top agents, brokers, executives, proptech, and financial professionals to share insights, insider guidance, and trends to navigate the current market. With over 75 engaging sessions featuring 250 expert speakers and countless networking opportunities, attendees can gain valuable advice and build essential relationships with peers and industry leaders. In addition, Inman Connect New York offers an immersive experience with crucial newsmakers, visionaries, and trendsetters, providing critical insights and advice to help professionals take their businesses to the next level.
5. I.CON East 2023
June 7-8, 2023 | New Jersey (USA)
I.CON Is one of the largest events in New Jersey focused on developing, operating, and expanding industrial real estate. As an industrial real estate professional, attending this premier conference offers a unique opportunity to stay up-to-date on the latest trends and technologies in real estate asset management and industrial development from top industry leaders. Additionally, the event provides a platform to network with like-minded professionals in a vibrant and enthusiastic environment. Attending the event will help with investment management solutions for real estate investors. The event features a range of activities, including a happy hour with exhibitors and a keynote speech on 'The Future of Economic Growth: Identifying Emerging Opportunities and Risks.' Keynote speakers include Matt Brady from Ware Malcomb, Luke Corsbie from PE, PLS, Frank Di Roma from OAA, James Geshwiler from Catalyze, Nicolette Jaze from Galvanize Climate Solutions, and Madeline O'Donnell from Principal Real Estate Investor, among other well-known speakers.
6. Future of Digital Asset Management Summit
October 18, 2023 | London (United Kingdom)
The Future of Digital Asset Management for Businesses is a highly informative event focusing on essential solutions for real estate professionals seeking to streamline their digital asset management processes. This event brings together experienced experts from international brands to share their insights and knowledge on the software systems that can enhance campaign productivity and ensure brand consistency. In addition, attendees will comprehensively understand digital asset management, digital delivery, data analytics, security, and more. This event is designed for CXOs, VPs, Directors, Managers, and professionals from various domains, such as asset management, digital technology, IT, business development, and more. The event's key speakers are from leading companies such as Tesco, Nordia, ExxonMobil, Atkins, and Ashley.
7. Expo Real
October 4-6, 2023 | Munich (Germany)
Expo Real is an international trade fair dedicated to property and investment, attracting professionals worldwide from the entire real estate industry. Held annually for three days in Munich every October since 1998, it is one of the most significant events of its kind in Europe. Expo Real provides the perfect platform for networking and sharing the latest real estate insights with fellow professionals meaningfully. The event will allow one to discover the latest trends in property and investment, attend panel discussions, and connect with like-minded individuals worldwide. Renowned industry experts will share their insights on current and future trends in the real estate market. The event will feature over 500 speakers from various sectors of the real estate industry, including leading investors, developers, operators, and service providers.
8. Canada PropTech Show 2023
August 22-23, 2023 | Toronto (Canada)
The Canada PropTech Show is a two-day event that includes an exhibition, networking sessions, and awards, providing an ideal platform for PropTech companies, real estate owners, investors, service providers, startups, and other players in the real estate ecosystem to engage in productive discussions, share ideas, and build partnerships. The real estate conference will cover topics such as smart buildings, AI, blockchain, virtual and augmented reality, and IoT. Through these sessions, attendees will gain valuable insights into how technology transforms the real estate industry and discover ways to leverage technology to drive their businesses forward. By attending the event, real estate professionals can gain a competitive advantage, forge new business relationships, and discover new opportunities for growth and success.
9. Mortgage Star Conference
July 10, 2023 | Orleans (Los Angeles)
The Mortgage Star Conference is a tailored event designed to empower and support successful women in the real estate industry. This immersive conference offers a unique opportunity for real estate professionals to enhance their skills, network with like-minded industry professionals, and gain valuable insights to achieve superior results. With esteemed speakers such as Olympic Medalist Amanda Beard, SVP Operations at Angel Oak Mortgage Solutions Alysse Prosnick, and Managing Editor at Mortgage Women Magazine Kelly Hendricks, attendees can learn from industry leaders and share experiences in an environment that fosters lifelong connections. This conference will help to sharpen abilities, build relationships, and enhance business in the mortgage industry.
10. Digital Mortgage 2023
September 26-28, 2023 | Wynn (Las Vegas)
Digital Mortgage 2023 is a leading event that assists businesses in transforming the mortgage industry by providing actionable insights and effective networking opportunities for industry professionals. The real estate leaders and managers will be able to connect with the mortgage community and collaborate to address the industry's digital evolution by attending this event. In addition, participants will learn how to prioritize personalization in mortgage portfolio management and how data contributes to a more personalized customer lending experience.
Conclusion
The real estate industry faces several challenges, including adapting to technological advancements, changing consumer demands, and environmental concerns. These challenges make it difficult for professionals to stay competitive and profitable. However, attending industry conferences can help professionals gain a futuristic approach to tackling these challenges. The events provide access to experts and valuable insights into commercial real estate new trends, technologies, and sustainability practices that can help businesses stay ahead of the competition. Additionally, networking opportunities at these conferences can help real estate professionals build essential relationships to develop their portfolio performance further and manage real estate assets.
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