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Real estate’s digitisation delay down to IT knowledge gap

Sustainability is destined to be the biggest area of development for the sector in Europe according to over a third of European real estate professionals.

Research undertaken by virtual data rooms provider Drooms, revealed that 36% of European real estate professionals identified sustainably managed assets as the most likely significant future trend. Meanwhile 26% identified digitisation and 21% highlighted artificial intelligence as the biggest forthcoming issues for the sector with digitisation more highly ranked in Germany and Spain and AI identified more in the UK and France.

The most common reasons for delay in digitising the real estate industry were thought to be a lack of knowledge about existing technology according to 48% of the sample while 45% thought that a lack of understanding about the true benefits was behind it.

Nevertheless, Drooms said real estate professionals are keen to exploit the potential of technology and how it can be used sustainably with 87% of respondents across Europe saying they are very likely to increase their technology budget in the next two years.

Communication with all stakeholders is the biggest challenge in real estate asset management according to 35% of respondents.

“Our research highlights the pressing need for investment in technology to further digitise the real estate asset management industry and address the need for sustainable processes,” said Drooms’s co-founder and chief executive Alexandre Grellier. “It’s clear to see that digitisation within the industry plays a significant role in the success of ESG management. While this issue cannot be solved overnight, applying technologies already available will see the industry take those important first steps.”