The real estate sector is a major contributor to the global economy and is expected to grow at a 4.8% CAGR between 2021 and 2030. In the UK, the turnover generated by real estate businesses is more than £68 billion. However, there are some serious challenges such as construction costs, available (re) finance, lack of assets, and sustainability, all of which serve to hinder the growth of the sector and as a result, place real estate businesses in a position of uncertainty.
At the core of all these issues is a reliance on manual reporting that is inconsistent and time-consuming, especially when it comes to managing multiple projects in different locations with a huge number of stakeholders involved. Furthermore, reliance on spreadsheets, physical meetings, and inconsistent reporting makes the entire process unproductive.
Whilst no one can predict the future, technology has enabled businesses to forecast any risks in real-time and manage them before they knock the door unexpectedly. By implementing advanced technology, real estate businesses can enhance the reporting of their overall operations – thanks to the single pane view through an adaptive platform.
Real-time updates with a single pane view
Real estate projects involve significant reporting from several individuals and teams positioned at different levels of a business including third parties, with many of these being in different locations around the world. Owners and C-suites within the industry often face challenges due to inconsistent manual reporting formats. On top of this, recording information manually is time-consuming and often error-prone, which is another serious challenge.
Today, real estate owners, managers and C-suites can leverage adaptive management platforms to keep track of new updates of their projects. Adaptive management software can flag risks in real-time by providing a window to multiple projects in different geographies. This not only allows real estate developers to be more efficient but also can minimise risks of downtime, material shortage and funding.
Investors, bankers and real estate owners manage large portfolios of projects involving several stakeholders and locations. To stay efficient and tackle any risks proactively, live reporting of the project developments is a must. Implementation of adaptive management software can minimise the need for physical and virtual meetings by allowing everyone access to the platform where they can report in real-time.
What’s more, it has become more important than ever before to manage ESG concerns, as they are of high importance to internal and external stakeholders. With bespoke ESG monitoring tools, real-estate leaders can consolidate their customers’ reporting requirements. This not only helps businesses in their current management but also in forecasting for the long term.
Act before it happens: forecasting future risks
Asset obsolescence and the sudden need for construction costs are common challenges faced by real estate owners. As these factors have a direct impact on the progress of projects, owners and managers must be capable of managing these risks before they hinder the project development.
One of the best ways to mitigate these risks is with a proactive approach that involves advanced forecasting. There’s no denying that without up-to-date information, an accurate forecast can not be achieved. Projects within real estate where developments happen every day mean it is crucial to record these developments in real-time.
Modern tech platforms provide real estate professionals with automated reporting in a single view whilst highlighting any red flags. For instance, current information about material availability can enable a project manager to forecast the durability of materials and order in a suitable time whilst avoiding any downtime. Moreover, the information about the order and costs can be uploaded on the platform in real-time. This allows C-suites to stay updated about the available funds which further helps them with efficient fund planning in the future.
In the real estate sector, accuracy is essential. However, what’s more significant is to understand the evolving nature of accuracy – something that was accurate yesterday isn’t necessarily accurate today. Ensuring accuracy in combination with the latest information is the most effective method to allow developers to achieve their desired results.
Since information is rapidly changing and needs real-time updating, organisations cannot simply rely on stats that were manually reported on a spreadsheet two days prior. Manual reporting brings several challenges such as lack of transparency, inconsistent formatting, and information spread across several different places which directly affects the accuracy of reporting.
A one-stop-shop solution to overcome all these challenges is to embrace digital transformation with automated reporting. Modern technology enables real estate developers to analyse accurate information which further enables them to forecast effectively.
Often manual reporting can be affected by multiple factors such as delays in meetings, long distanced geographies, and time constraints. Therefore, the information received is inconsistent. Live reporting, on the other hand, allows stakeholders to feed any updates to an online platform which can be easily accessed by C-suites anytime and anywhere.
Gaining a competitive advantage
Within the cut-throat environment of real estate, businesses that leverage advanced technology and digitise their operations will gain an advantage over their competitors. Real estate owners who begin to integrate the adaptive platforms within their operations will be able to boost accuracy, consistency and efficiency in business outcomes. As a direct result of this, businesses can thrive in a competitive market through increased efficiency.
Increased visibility through live and synchronised reporting strengthens professionals to report key risks, therefore enabling C-suites to take proactive steps.
“fu3e., the leading real estate technology platform, is a game-changer. It gave us the immediate transparency we needed to make informed, rapid, and accurate decisions,” says Paul Bashir, Managing Director & CEO Europe at Harrison Street, which has been leveraging fu3e.’s technology to monitor and manage risks in real-time. Leading organisations like Harrison Street have already begun their digital journeys and are looking forward to more advanced integration of technology in the real estate sector.
Blog, featured in Property Wire: https://www.propertywire.com/blog/advancing-entire-real-estate-with-real-time-risk-management/