Artificial Intelligence Plus Human Expertise - A Combination That Can Transform RE Value

Sustainable competitive advantages thanks to an intelligent real estate management platform. Learn how investors and real estate owners such as UBS Asset Management can achieve systematic added value with their portfolios by using the future-proof solution Wüest Dimensions. 

The real estate world is becoming increasingly complex. Technological innovations, global economic developments, increasing regulation and market volatility are all contributing to this. In addition, other megatrends such as urbanization, demographic and climate changes are influencing both supply and demand.

Creating sustainable value and competitive advantages in such a multidimensional environment is both a challenge and an opportunity. The targeted use of technological tools (always in combination with specialist expertise, of course) is therefore becoming a necessity. But what exactly is the potential?

Integrating the entire value chain with comprehensive data

Let’s start with the most important raw material of the 21st century: data. Transparent and flexible integration of data, which is typically obtained from heterogeneous data sources, forms the foundation of an optimal solution. The automated processing and consolidation of data from valuators, property, asset and portfolio managers as well as sustainability and risk managers not only save effort, but also allow the focus to be directed towards valuable and factual discussions.

A real estate portfolio generates a large amount of data. Processing this data from scratch and in high quality is hardly possible nowadays without a comprehensive real estate management platform – not to mention simulations and interactive analysis options. Therefore, one should focus on the following: ensure the integration of all data along the entire value chain and across various stakeholders. Those who implement this consistently not only benefit from a significant improvement in data quality, reduced operational risks and a significant increase in efficiency, but also have the necessary basis to make better decisions more quickly.

Built-in sustainability management 

Property owners can order a condition and inspection report directly in Wüest Dimensions. The property managers digitize the properties using an integrated mobile application and a structured process. The photos documenting the condition, materialization and standard of the property are automatically matched with the correct building elements thanks to artificial intelligence-driven image recognition. On this basis, Wüest Dimensions automatically calculates the current CO₂ emissions, creates a refurbishment plan and shows the associated CO₂ reduction path.

Business plans and portfolio values at a click

The value of a property is derived from its use or – from the owner’s perspective – from the underlying business plan. Wüest Dimensions provides this automatically. While hedonic rent equations determine the current and future rent level, operating costs and vacancy trends are forecasted using machine learning. The entire business plan is then checked for its intrinsic value using integrated discount rate models and compared with alternative scenarios. In this way, the most valuable measures are made visible immediately.

The business plans of the individual properties can be aggregated across the entire portfolio. This allows the long-term capital requirement or surplus to be shown. Based on this data, investment applications can be created automatically which, in addition to business plans, investment requirements and CO2 reduction path, also show the positioning on the market and the necessary benchmarks. An automatically generated ESG rating is also included and can help achieve a better GRESB rating (recognized by GRESB).

Comprehensive market and location data are also part of Wüest Dimensions. They enable an overarching and in-depth understanding of local market conditions, socio-economic trends and environmental factors. This not only helps to mitigate risks and identify opportunities, but also to predict future developments and thus prevent a negative impact on the value of the portfolio and its assets.

Intelligent real estate management is essential for value-oriented development

To ensure sustainable value creation in the real estate sector, Wüest Partner addresses the complexity described above with a proven combination of expert know-how, innovative and industry-leading digital solutions and the end-to-end use of data. The focus is on Wüest Dimensions as a modular, integrated and intelligent real estate management platform with comprehensive market and location data. The platform’s individual modules efficiently connect human and machine and support the real estate industry with current and future challenges.

Wüest Dimensions in use at UBS Asset Management

UBS Asset Management has chosen the Wüest Dimensions real estate management platform to manage their extensive Swiss real estate portfolio with a market value of more than 27 billion Swiss francs. On August 26th, they will be hosting a webcast exploring how current events and monetary policies are shaping European real estate – you can find out more here.

Find out more in the interview: https://youtu.be/kcyrr79VaBM 

About the solution: https://www.wuestpartner.com/ch-en/services-products/digital-solutions-for-real-estate/wuest-dimensions/ 

Written with WuestPartner