Trouble Ahead? Deloitte 2022 Commercial Outlook of Real Estate
From what we experience at Yavica, the real estate companies that are better prepared for the future, are the ones that invest in digitization and new technologies. Simply because new tech equals more data, data driven decisions and far better customer service.
However, this new 2022 outlook from E&A reveals a somewhat disaster waiting to happen. Eighty percent of real estate await more growth in the coming year and still, these survey results reveal that the majority do not prepare for implementing new technologies but rely on existing technology.
Here are three of the key findings from Deloitte’s 2022 commercial real estate outlook:
Optimism around fundamentals prevails. Eighty percent of respondents expect their institution’s revenues in 2022 to be slightly or significantly better than 2021 levels.
Most firms continue to depend on legacy technology systems, which could hamper progress and their ability to innovate. Eight in 10 respondents do not have a fully modernized core system that could easily incorporate emerging technologies.
Many CRE firms are focusing on retrofitting properties and repurposing spaces for alternate uses to maximize value. However, only one-quarter of respondents say their companies are substantially increasing technology investments to bolster portfolio and asset management capabilities.