Analysis: Digitalization in the Real Estate Industry to Meet Future Demands
Analysis: Digitalization in the Real Estate Industry to Meet Future Demands
The construction and real estate sector has long been regarded as a conservative industry when it comes to IT and digitalization. One contributing factor to the industry's lag in digital transformation is that, in the past, digital investments were not seen as valuable compared to sectors such as manufacturing, retail, or healthcare. However, in recent years, investment rates have increased, and interest in automation and security solutions is growing. Still, many industry players continue to rely on outdated IT environments that fail to meet the demands for development and innovation.
Strategic Investments in Digitalization for the Real Estate Industry
When analyzing how the industry invests in IT, we see that automation for increased operational efficiency is a top priority. Digitalization efforts aimed at transforming and improving business operations and models are also highly valued. This confirms the image of an industry currently making significant strides in updating older systems and workflows to meet new digital requirements.
“With the right cloud solution in place, a world of innovation and sustainability opportunities opens up—opportunities that were previously reserved for companies with larger IT budgets and more extensive expertise”
Proactively working with the automation of business processes creates a better everyday work experience for employees while also contributing to resource efficiency and helping businesses achieve their goals. Investments in automation and digitalization to enhance IT environments can take various forms, including:
- Technical analysis and mapping. Conduct a technical evaluation of existing infrastructure to identify development needs and skill gaps. The goal is to invest in digitalization in a way that provides the greatest return and remains sustainable over time.
- System replacement. Upgrade outdated control and management systems with more advanced, intelligent solutions that enable better monitoring, energy optimization, and resource management.
- Cloud-based solutions. Migrate from on-premise systems to scalable, flexible cloud platforms that enhance data management, collaboration, and accessibility.
Currently, 10.3% of the industry’s IT budget is allocated to cloud services—a relatively low figure compared to other industries and Sweden’s national average of 13.7%. Many industry players perceive the complexity of integrating cloud solutions with their existing IT environments as a major challenge. Additionally, cost concerns and potential disruptions to daily operations are cited as risks associated with cloud migration.
The Solution: A Gradual Transition
A step-by-step migration, where non-critical systems are moved first, can be a controlled approach to transitioning to an updated cloud environment. A hybrid solution, where on-premise systems are combined with public cloud services, can also facilitate the transition. Standardized APIs simplify system integration.
Working with a responsive partner who can guide, support, and act as a navigator during this transformation is essential. Industry players who also train employees and invest in robust security solutions will be well-equipped to handle integration complexities and ensure a successful migration to the cloud.
“Developing an IT environment is more than just a technical necessity—it’s a strategic investment in the future.”
Driving Innovation and Sustainability in the Cloud
With the right cloud solution in place, a world of innovation and sustainability opportunities opens up—possibilities that were previously only accessible to companies with larger IT budgets and deeper expertise.
Cloud-based solutions for property management enable the collection and analysis of large volumes of data, providing better decision-making foundations and optimizing building operations. AI and machine learning can analyze this data to predict maintenance needs, optimize energy usage, and improve building systems, leading to increased efficiency, reduced carbon emissions, and lower operating costs.
Learn more about how AI is used in the construction and real estate industry
See It as an Opportunity
The real estate industry is in the midst of an exciting digital shift, unlocking new opportunities for efficiency, innovation, and sustainability. Developing your IT environment is more than a technical necessity—it is a strategic investment in the future.
Create a more innovative and sustainable future for your company by investing in digital transformation. Nordlo has extensive experience and numerous successful references in the construction and real estate sector. Our experts are ready to support you on your journey.
Contact us to learn more
