The real estate industry has had a turbulent year. Despite these challenges, every property offers opportunities to meet the needs of both investors and tenants. The key lies indigitizing processes and systems, and consolidating them on a central platform. In the following, I would like to share my top four predictions for the real estate industry to consider in 2024.

Sustainability as an Investment Criterion

Leveraging Smart Data for Efficient Portfolios

Sustainability has evolved from a buzzword to a critical investment criterion for both new and existing buildings. Increasing pressure from ESG criteria, taxonomy, and national legislation requires a rethink at the portfolio level. In this context, data literacy is emerging as a key success factor. Those who not only collect information from buildings, but also understand it to derive actionable options, will meet the growing demands of EPBD, GEG & Co. Legislation has already recognized this. According to the German Buildings Energy Act, almost all non-residential buildings in Germany will have to meet certain minimum requirements for building automation by the end of 2024 in order to sustainably reduce their energy consumption.

Efficient and Predictive Operation

AI Applications on the Rise

The trend toward efficiency through predictive control in buildings continues. Investments in AI-based solutions to proactively minimize disruptions and downtime (predictive maintenance) and demand-driven control based on weather forecasts and room usage (predictive control) are on the rise. Looking beyond 2024, software-based Demand Side Management allows buildings to dynamically adjust their electricity and heating energy consumption, becoming active participants in the energy transition. Commercial buildings and entire neighborhoods can play a critical role in stabilizing the electricity grid and driving the transition away from fossil fuels.

Digital Ecosystems

Synergies for Success

The growing volume of data and the increasing complexity of smart buildings require standardized platforms for collaboration among different service providers and digitization partners. Coordination between systems and providers is critical to achieving optimal outcomes for both the climate and buildings. In the digital ecosystem, metering and control technology, as well as facility management and ESG platforms, are connected in a smart way to improve the overall performance of a property. At the same time, data privacy and information security requirements will become critical. Our recommendation for 2024: Ensure building connectivity, work with certified partners, and allocate resources to protect personal and security-related data within the building.

User Experience and Wellbeing

Enhancing Transparency and Participation

Today's buildings are designed not only to be more efficient. They are also designed to improve the user experience, because the only way to sustainably increase revenue and property value is to attract solvent and satisfied tenants. A comfortable indoor climate, pleasant lighting, and efficient use of space with minimal operating costs have become standard (at least in theory). What's relatively new is the realization that service and security are intertwined with transparency and active participation in the "social" and "governance" sense. For example, a display in the lobby of an office building showing current savings potential, actionable recommendations, and success stories can effectively raise awareness and motivate users to save energy.