European Operations and Technology Survey for real estate investment managers

Executive summary

The level of interest in innovation is very strong and this perhaps reflects the level of opportunity seen in the sector in using disruptive technologies to gain competitive advantage.

A large number of investment managers are rethinking their operating models, outsourcing strategies, IT tools, and investments in technological innovations to support these changes. The efforts to identify inefficiencies and maximize value across all investment management activities is a common denominator in the survey.

The digitalization of contracts/documents, big data and data analytics, as well as robotic process automation are increasingly a key target area for investment. Artificial Intelligence is regarded as having the potential for a significant impact on the sector but is still perhaps too early in the cycle for wide adoption.

The real estate investment managers surveyed have a strong pan-European influence, with 66 percent of their worldwide employees operating in Europe and 47 percent of its real estate assets under management in Europe.

There is strong challenge for talent (recruitment and retention), real estate pricing, and deal flow. Over 70 percent of those surveyed has invested or intend to invest in the areas of asset management and data warehousing systems. The level of satisfaction with technology, SPV accounting, and consolidation and property management, is also an area of concern.

This survey provides an overview of the most relevant challenges that the industry is currently facing and, in particular, focuses on how real estate investment managers have utilized (and/or are planning to utilize) technology to overcome both existing and predicted challenges.

The survey also provides an insight into outsourcing trends, operating model satisfaction, current and future investments in software and applications, and a vision for future technology deployment.