42013526 - Horizons - Q4_v04c

ISSUE 4 | 2021

56

The above are just a few examples of how new technology is spreading throughout the real estate industry. For investors, keeping track of the new possibilities created by technology and which companies are making the best use of them will be a factor in evaluating what investment targets to pursue. PropTech and ConTech become asset categories themselves.

Making assets more sustainable when they are constructed or renovated or repurposed contribute to their attractiveness. Simultaneously, they increase their earning potential by being as self-sufficient as possible, for example generating their power or processing their wastewater. Such areas are seeing a lot of rapid technological development, which is likely to accelerate further in years ahead.

The focus on flexibility will be even stronger for new constructions. In response to uncertainty, making sure that you have the inbuilt ability to change a space and adapt its use is often more straightforward with something that has not been built yet than something that is already there. What also is relevant in this respect, is the increased blending of property management, facility management and hospitality, which enables flex property landlords to increase occupancy and turnover. SUSTAINABILITY AND ESG ESG and sustainability are increasingly contributing to the overall attractiveness and earning potential for existing real estate and buildings in the blueprints stage. Across real state, sustainability, ESG and responsible investing are transitioning from additional, complementary strategies to a fully integrated part of investment management. Energy efficiency, construction carbon emissions and climate adaption are increasingly valued by investors and tenants alike. Government legislation, financial regulations, the pandemic and at present the fast increasing energy prices further this.

TECHNOLOGYWILL KEEP GROWING

Amsterdam, October 2021

Apart from real estate developments and hard assets, investor interest is rising in relation to technology used in construction, real estate, property management, and building interactions. In a post-COVID world, buildings equipped with touchless technology and intelligent air quality monitoring stand to fetch a premium from both investors and tenants. Big data analytics is disrupting the way buildings are monitored and maintained, not to mention how they are constructed. New systems are streamlining and simplifying building processes for on-site construction – for example, quality documentation and reporting.

ARJAN ENDHOVEN BDO GLOBAL HEAD OF REAL ESTATE AND CONSTRUCTION

arjan.endhoven@bdo.nl

BDO Global/industries/real estate & construction Real estate & construction – BDO BDOWorld/industries/real estate & construction Industries - Home (sharepoint.com)

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