Is the real estate market ready for technology?

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To change of way

Traditionally, asset managers and real estate agents offer advice based on industry expertise, but the tides have started to turn. We now live in the digital age where technology and data have become necessary components to thrive in a competitive market.

Unfortunately, technology adoption poses a significant challenge for many real estate companies, putting them at a serious disadvantage. Confident and successful portfolio management is about more than taking the pulse of market movements.

The modern asset manager must recognize the essential nature of data and convey proprietary insights to the most valuable investors. This is a necessary confidence-building exercise where technology serves as a valuable vehicle.

The big question remains: is the real estate market ready for technology?

Bar Mor, CEO and co-founder of Agora

Why some companies are out of touch

Historically, businesses struggled with technology adoption for one main reason: prioritization. Asset managers deal with tons of paperwork (although nowadays mostly digitized) and manual tasks that take up most of their working lives.

Also, like in many other industries, real estate professionals have become familiar with their default workflow. More traditional corporate executives might sell themselves short by stating that AI can’t match their team’s knowledge and expertise.

It becomes almost disruptive to initiate a digital/technology transition that requires reorganizing tasks into new systems. Some companies prefer to wait for a given technology to become an industry standard. Yet a reactive trading strategy limits portfolio optimization and undermines investor confidence.

With a little research, it’s easy for savvy investors to uncover a company’s myopia and move on to a better-equipped competitor. Therefore, the best way forward is to implement a technology-driven system that empowers real estate investments.

How technology is changing the real estate landscape

Fundraising is one of the biggest challenges in the real estate industry: moving from place to place and looking for investors to close is a familiar notion. the disruptions from previous phases of the pandemic proved that asset managers need to bring their operations online more efficiently.

Modern businesses can benefit from maintaining relationships with their clients on a reliable investor management platform. Specifically, the program should offer automated capabilities that guide managers through the various stages of the investor pipeline.

With a technology-assisted platform, professionals can spend less time browsing investors’ portfolios and avoid underwriting disruptions.

Detailed reports and assessments

While investors generally believe that asset managers have their best interests at heart, there is a need to present relevant data for a fact check. Well-researched reports should present the latest local, national and market information to provide investors with a comprehensive breakdown of potential risks and returns.

Besides generating optimized reports, companies need a reliable way to gauge investor response and behavior in order to tailor the best recommendations. Therefore, it is essential to ask questions such as:

  • What are my investors’ priorities?
  • How can I present relevant information most clearly?
  • Are investors affected by the reports?

A real estate CRM helps address and resolve these issues, giving investors the confidence they need to maintain and grow a portfolio.

Optimized communication

Real estate asset management is ultimately a people-driven process. A conventional approach to investor communications involved juggling various touchpoints, resulting in undelivered emails and poor data management.

Advanced technology solves the problem by allowing asset managers to communicate with investors through a single channel. Think of it as companies conducting their discussions from an online headquarters, where they can quickly send emails, retrieve investor details, and improve investor-company relations.

The future of real estate asset management

The real estate market remains one of the most popular and convenient avenues of investment. Research forecasts market growth from $2687.35 billion in 2020 to $2774.45 billion in 2021 in a compound annual growth rate (CAGR) of 3.2%.

In most cases, there is a constant possibility of accumulating a constant income, with the right level of research and understanding of the market. This is where an asset management company comes in to rank the risks and opportunities for investors, to help them get the best results in the most volatile scenarios.

While real estate professionals may be unaware of the importance of technology, now is the time to prepare for it. 78% of respondents to the joint survey, Emerging trends in real estate in Europe, believe there will be an upward trend in the use of technology over the next three to five years.

Author: Bar Mor is the CEO and co-founder of Agora, a fintech/SaaS company that has developed advanced real estate investment management software. They help companies raise and preserve more capital by automating their back-office operations, increasing their investor satisfaction and providing them with advanced tools. Bar is 27 years old and lives in Tel Aviv. He was recently recognized as an emerging real estate leader.

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