Digitalization: Tool or Goal

On September 5–6, 2024, the Proptech Connect was held in London for the second time, bringing together nearly 4,000 real estate and technology professionals and experts.

Proptech Hungary and the Hungarian market were represented by Zoltán Kalmár, who moderated an engaging panel discussion on the role of innovation in the real estate industry. His discussion partners included Dr. Jimmy Abualdenien from Nemetschek (dTwin), Costas Koureas, Head of IT at MAPP, Annie Marston from Re:Sustain, Jonas Hafner, Head of Transformation at REInvest, and Zuzanna Paciorkiewicz, Head of Asset Management CEE at Cushman & Wakefield.

The digital transformation of real estate is becoming increasingly intense, with new technologies constantly reshaping the sector. Developments such as Artificial Intelligence (AI) and Robotic Process Automation (RPA) dramatically improve efficiency and reduce the risk of error in administrative tasks. But the key question remains: is digitalization merely a tool, or is it the goal itself?

Digitalization is just a tool – but what is the goal?

Reflections from Zoltán Kalmár, shared after his return from the London PropTech conference, highlight the dilemmas of the real estate market. For many, digitalization is simply a tool to optimize operations and make administration and management tasks more efficient. But what is the ultimate goal? Different stakeholders see it differently. Some expect improved working environments, others want sensors to make spaces measurable and manageable, while many emphasize knowledge transfer and education.

Real estate stakeholders – developers, landlords, and operators alike – are still learning how to use proptech tools effectively. According to Kalmár, there are many tasks ahead: creating proprietary data centers, hiring specialists capable of managing digital tools properly, and developing “app stores” that allow integration of various digital solutions. Equally important is for companies to understand where they stand in terms of digital maturity and how far along they are on their digital transformation journey.

Automation and AI in real estate

Technologies like RPA and AI are already present in the industry and are driving significant change. RPA is well-suited for automating repetitive, rule-based tasks, such as lease administration, rent collection, and scheduling facility maintenance. These software “robots,” by imitating human actions, can reduce errors and increase efficiency.

AI’s capabilities, however, go far beyond simple task automation. AI enables predictive analytics, dynamic resource allocation, intelligent decision-making, and even multimodal information processing. For example, by analyzing historical data, AI can predict maintenance needs before they become problems. This optimizes the use of property portfolios and helps improve long-term tenant satisfaction.

Intelligent automation: a comprehensive solution

One of the most innovative areas of proptech is intelligent automation, which integrates RPA, AI, and other advanced technologies to fully optimize real estate workflows. This covers processes from property acquisition to design, tenant management, operations, and portfolio optimization.

The ultimate goal of digital transformation is to make real estate operations more transparent and processes more efficient and automatic. One manifestation of this is digital twin technology, which allows real-time monitoring, management, and optimization of properties.

Improving tenant comfort and experience

Automation and proptech solutions not only positively impact operations and cost efficiency but also enhance tenant comfort. As Zuzanna Paciorkiewicz of Cushman & Wakefield highlighted, well-integrated automation enables buildings to operate more efficiently without users even noticing. Technology should simplify tenants’ lives, not complicate them.

AI-based HVAC systems, for example, optimize energy consumption based on actual office usage, improving tenant experience and environmental sustainability. Furthermore, data collection provides operators with deeper insights into tenant needs and behavior, enabling them to offer increasingly tailored solutions.

Why has real estate lagged in digitalization?

The real estate sector is highly fragmented, and several factors have hindered faster progress. A lack of digital literacy and the complexity of multi-stakeholder projects are serious challenges. As Zuzanna also noted, in many cases, tenants and users themselves interfere with automated systems, creating further obstacles to broad adoption of technological solutions.

Another key factor is that digital investments often do not generate immediate returns for property owners. Tenants and facility managers are the first to benefit directly, while for owners, advantages such as increased asset value, tenant retention, and attracting new tenants materialize only over the longer term.

Future trends and outlook

Although digitalization has been slow, the demand for improved efficiency and sustainability is growing. As Jonas Hafner from REInvest Group emphasized, AI and other digital technologies can help make real estate more sustainable and environmentally friendly in the long run, benefiting both owners and tenants.

As Bill Gates famously said, “People overestimate what they can achieve in one year and underestimate what they can achieve in ten.” The real estate sector faces a similar challenge: in the short term, the direct effects of digitalization may not be visible, but in the long term, transformation can fundamentally reshape real estate operations and the tenant experience.

Conclusion

Digitalization is therefore not merely a tool but an opportunity that fundamentally reshapes the real estate sector. Automation, AI, and smart solutions are playing an ever-increasing role, and while transformation is slow, the future clearly points toward technological advancement.

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