Over the past three years, the real estate industry has been in a period of unusual change. Reduced office occupancy rates, increased digital expectations of working from home – combined with rising energy costs and interest rates – have created a perfect storm that few could have foreseen only a few years ago.
In addition, sustainability compliance demands for the industry are increasing, driven by customers, investors, and regulators alike. In the Intergovernmental Panel on Climate Change’s (IPCC) recent sustainability report, buildings are highlighted as one of the major focus areas in efforts to meet sustainability goals. This is because buildings account for 40% of all energy used in cities and 36% of CO2 emissions in Europe.
Furthermore, studies have shown that 75% of buildings in Europe are not considered energy efficient. In the cold, energy-intense climate of Northern Europe, it is therefore a priority to find new ways to increase energy efficiency and reduce consumption.
Björn Hansen, commercial head of IoT at Telia, says “Buildings are part of the problem but are also a big part of the solution in the quest for more energy-efficient and sustainable societies. In this report, we look at the impact of the new challenges for commercial and residential building management. We also explore the new possibilities brought on by digitalisation and IoT. To quantify this, we have looked at the return on investment in terms of reduced energy consumption and costs, as well as sustainability benefits. The aim is to prove how relatively small technology investments can lead to increased profitability and sustainability in a short period of time. It’s all part of our efforts to support building owners to find new digital solutions for their challenges and help create greener cities in the longer perspective.”
The report, Real-estate industry challenges and digital solutions: Measuring the return on smart building investments in the Nordics and Baltics, is the latest collaboration between Telia and Arthur D. Little to explore the digital possibilities for the real estate industry.
Agron Lasku, partner, head of telecom, IT, media and electronics, Arthur D. Little, says “New challenges are mounting in the real estate sector, which necessitate a stronger effort to increase the intelligence of their buildings. Since our last joint report with Telia Company on the topic, we have seen a noteworthy increase in the implementation of digital solutions across the industry. Yet over 40% of real estate companies still lack a digital strategy, indicating many have yet to tap into the opportunity that IoT-enabled smart building solutions represent. We hope this topical and relevant study, which analyses and quantifies bottom-up the return on investment for an array of important smart building use cases, will help the industry to accelerate their digitalisation journeys.”
If you want to know more about how IoT can benefit your business and calculate the potential savings you can receive for your building or portfolio of buildings, contact us.
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