24 Jan 2023
The key to assessing the value of a real estate asset is having clean data on the property details, age and occupancy. You can enhance that property information further by supplementing it with additional facts from other private and public sources. These all act together to provide the most accurate picture on liquidity and valuations for optimizing real estate assets.Technologies are now available to remove human subjectivity and error and make the most objective, comprehensive profiles for real estate properties and portfolios. Manual processes can create more work and leave you with more questions than answers in many cases.
Using technology for remediation of data is a clear choice given the time savings and decrease in the probability of human error. By the same token, using technology to provide accurate real-time information is essential now in optimizing assets within the portfolio. Today’s changing marketplace requires a rapid and accurate assessment of disparate data.
The economic environment is presenting multiple uncertainties that create a heightened urgency around acquiring a deeper understanding of portfolio assets. Geopolitical risks, changing liquidity across the European continent, and macroeconomic uncertainty amid lagging effects of the pandemic all contribute to an urgency for technology with analytics that can provide the most useful information at the drop of a hat. This is more concerning now than ever as KPMG and others have indicated that banking clients across Europe are experiencing credit focused supervisory activities as a risk mitigating provision. Energy intensive sectors and portfolios with sensitivity to interest rates have received considerable attention.
In today’s real estate market, institutional knowledge, and legacy systems for understanding internal and external data in a portfolio are incomplete and fall short of providing the most critical insights in real-time. A combination of transparency and up-to-date data flows are necessary in today’s market. Namely, technologies can bring clarity around assets and support daily decisions about whether to hold a loan, sell a loan, or repossess and then sell the underlying property. Continuous automated updates to workflows help decision makers and managers to quickly understand the value and status of each asset, while identifying issues that provide the right information for all stakeholders.
Many software and technologies on the market come with extremely high failure rates since it’s often the case that good ideas are not necessarily valuable to decision makers beyond a single isolated use or simple efficiency gained. In order to gain market adoption, technologies must mature to the point where the analysis provides substantial information leading to increased profitability and best outcomes for the end users. Useful technologies will be able to both aggregate and automate analysis, as well as providing valuable insights that lead to profitability in volatile economic times and circumstances.