Is The Real Estate Market Ready For Tech?

Lane change

Traditionally, asset managers and real estate agents have provided advice based on industry expertise, but the wind has started to change. Today we live in the digital age, in which technology and data have become necessary components to be successful in the highly competitive market.

Unfortunately, technological adoption poses a significant challenge for many real estate companies that puts them at a severe disadvantage. Confident and successful portfolio management goes far beyond having your finger on the pulse of market movements.

The modern asset manager needs to understand the essence of data and provide exclusive information to the most valuable investors. It is a necessary confidence building exercise where technology serves as a desirable vehicle.

The big question remains: is the real estate market technically mature?

Bar Mor, CEO and Co-Founder of Agora

Why some companies can no longer be reached

Historically, companies have faced the problem of technology adoption for one primary reason – prioritization. Asset managers handle loads of paperwork (albeit now mostly digitized) and manual tasks that make up most of their professional lives.

In addition, as in many other industries, real estate professionals have familiarized themselves with their standard workflow. More traditional company managers may sell themselves short by declaring that AI cannot keep up with their team’s knowledge and expertise.

It becomes almost disruptive to initiate a digital / technological transition that requires a reorganization of tasks in new systems. Some companies prefer to wait until a certain technology becomes the industry standard. However, a reactive business strategy limits portfolio optimization and endangers investor confidence.

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

How technology is changing the real estate landscape

Fundraising is one of the biggest challenges in the real estate industry: getting from point to point and chasing investors to close is a familiar term. The disruptions from the earlier phases of the pandemic have shown that asset managers need to get their businesses online more efficiently.

Modern companies can benefit from maintaining customer relationships on a reliable investor management platform. In particular, the program should provide automated features that guide managers through different stages of the investor pipeline.

With a tech-assisted platform, professionals can spend less time browsing investor portfolios and avoiding subscription defaults.

Detailed reporting and reviews

While investors typically trust that asset managers have their best interests at heart, a fact check requires providing the relevant data. Well-documented reports should provide the latest local, national and market insights to provide investors with a comprehensive breakdown of potential risks and returns.

In addition to streamlined reporting, companies need a reliable means of assessing investor response and behavior in order to tailor the best recommendations. Hence, it is important to ask questions like:

  • What are my investors’ priorities?
  • How can I best present relevant information?
  • Are the investors busy with the reports?

A real estate CRM makes it possible to address and solve these questions and gives investors the security they need to maintain and expand a portfolio.

Optimized communication

Real estate asset management is ultimately a people-first process. A conventional approach to investor communication has been to juggle various points of contact, resulting in undelivered emails and poor data management.

Advanced technology addresses the problem by allowing asset managers to communicate with investors through a one-stop channel. Think of it as companies that conduct their discussions from an online headquarters where they can quickly email, get investor data, and improve investor-company relationships.

The future of real estate asset management

The real estate market remains one of the most popular and convenient investment avenues. Research predicts market growth from $ 2,687.35 billion in 2020 to $ 2,774.45 billion in 2021, with an average annual growth rate (CAGR) of 3.2 percent.

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

While real estate professionals overlook the importance of technology, now is the time to prepare for it. 78 percent of respondents to the joint survey Emerging Trends in Real Estate Europe believe that there will be an upward trend in technology usage 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 software for real estate investment management. They help companies raise and maintain more capital by automating their back office operations, increasing investor satisfaction, and providing them with advanced tools. Bar is 27 years old and lives in Tel Aviv. He was recently named an Emerging Real Estate Leader.

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