During this complicated and unprecedented period, real estate players no longer face risk management, but uncertainty management.
Economist Frank Knight reminds us in Risk, Uncertainty and Profit that it is possible to anticipate a risk using modeling based on known events. On the other hand, it is more complicated to anticipate a near future in the current situation by using probabilities, as the challenges we face are unprecedented.
Among various analyses, we note the consensus around the uncertain nature of the post-lockdown economic and real estate markets.
According to BNP it is complicated to make economic projections due to the rapid evolution of the situation linked to Covid-19. The impact on economic growth and the actions taken to cope with the situation are difficult to assess in the short term.
In any event, a contraction in gross domestic product is now expected in the first half of 2020. If the recessionary shock should be temporary, the profile of the upturn which should happen remains uncertain. The duration of containment and the control of the epidemic spread will be decisive in restoring confidence and boosting activity.
Béatrice Guedj and Pierre Schoeffler (IEIF), conclude their analyses by estimating that the valuation of the real estate market will be under great uncertainty. This may end when the transactions, which to date are completely frozen, are able to restart.
For the real estate sector, the brutal and rapid changes brought about by containment, and the triggering of continuity plans, prove the necessary integration of more technologies in maintenance, management, transactions, etc. from the entire Proptech ecosystem.
However, real estate players must be effective today to be ready for an uncertain tomorrow.
This efficiency requires the ability to make daily decisions and to set up and streamline both internal and external workflows.
The main identified benefits
In this context we help our customers by enabling them to make the best out of tough work conditions. The feedback we got from these first weeks of lockdown highlights the benefits brought by innovative tools — in the context of forced remote working.
Data and document management
Challenge to be faced: in most cases, the files are not shared and are replicated x times, leading to versioning problems. The documentary mass is de facto non-standardized and not pooled.
Answer given: through validation workflows, data and documents are made reliable and accessible to everyone in real time. Data are structured in a unique environment.
The organization of work processes and access to information
Challenge to be faced: when remote working, getting the answer to a question or finding specific information requires much more time and effort (many calls, email chain, etc.).
Answer given: collaborative work with differentiated access and modification rights allows everyone to have access to the data they need, while ensuring team building. For instance, a notary, banker, tenant, PM etc. has access to limited and relevant data on an asset while an asset manager will have a 360 view.
Decision support
Challenge to be faced: users need more than ever to have access in real time to accurate and visually impactful data, in order to help decision-making in an uncertain environment.
Answer given: the digitalization of real estate business goes through platforms whose algorithmic capacity replaces painstaking Excel models through a much more intuitive design.
If you think MYRE can answer you needs or if you just want more information on the plateform, feel free to contact us.
Take care of yourself.
Resources:
- The IEIF shares its first analyses on the consequences of the crisis on the real estate markets
- Real estate markets dealing with the epidemic
- Coronavirus, an economic crisis unlike any other
- MYRE, the data reliability tool
- MYRE, the fast and efficient data sharing tool
- MYRE, the app to simplify the management of a rental portfolio
