Not only real estate markets are buzzing with terms like innovations, technological changes, and new digital solutions. What does this mean for real estate landscape? We have tried to answer this question.

In the analysed CEE cities (Warsaw, Bratislava, Prague, Vienna, Budapest and Bucharest), office buildings are increasingly technologically advanced, however when compared to the global top tier buildings, there is still a big gap that needs to be filled. The analysis shows also that there are no substantial differences in patterns in results between the CEE countries.

New technologies are already widely used at the project development stage and increasingly at the property management stage for cost optimization. Owners and managers of buildings focus their attention on increasing energy efficiency and sustainability, thus lowering the operational cost base.

On the other hand, the results look slightly worse in the sphere of systems and solutions for tenants. The majority of buildings do not offer integrated office space management systems for tenants however, investors plan to provide this functionality in the next few years. Most office users utilize plenty of different applications, not integrated with each other nor with the building management system. Big developers realize that an integrated system combined with smartphone application will be the future of technologically advanced buildings. This would probably expand opportunities for start-ups entering the real estate market offering their proprietary applications.

Recently, the popularity of integrated mobile applications has been growing. A new generation of consumers and workers (Millennials and Gen Z) are forcing employers and landlords to recognize that technology is crucial in their workplace. Moreover, 30% of companies see smart building technology as a factor in choosing a building.[1]

CBRE Research conducted a survey among office users in six CEE countries (Austria, Czech Republic, Hungary, Poland, Romania, Slovakia), which proved that there is a niche on the market for integrated office space management systems for tenants and their employees. Employees would like to use digital solutions in the office however, these are not so widely accessible for them. On average, 49% of respondents stated that they would like to use new tech apps if it was available. Around 45% of surveyed employees have access to modern digital and technology solutions, however only 12% use them every day. 

Tenants are looking for integrated solutions that are convenient and save them time. Currently, their activities are managed through multiple separated applications that together build quite a significant stack of more than 50 solutions.
Here are some of key findings according to the respondents:

proptech report2019

Explore our findings and download the full report to learn more: Proptech Report.

[1]Optimizing Human Capital: Evolving strategies for skills, space, and service. Occupier survey; CBRE Research; 2019