Australian property developers are craving access to more detailed data to explain increasing complexity in the industry, joining a growing trend among developers worldwide.
The Real Estate Development Trends Report, undertaken by leading software, data and advisory firm Altus Group reveals, that despite regional differences, there is a majority consensus from developers around the world on what are the biggest challenges facing them.
The survey, which targeted more than 400 property development executives from across the world, highlighted the combined challenge of disruptive new forces such as the impact of new technologies along with traditional pressures such as cost escalation and labour shortages.
With margin compression and cost escalation highlighted as the industry’s biggest challenge, moving forward accurate forecasting, performance measurement and benchmarking were identified as critical.
The research identifies three areas - construction and development costs, feasibility assessment and due diligence, and market forecasting - as critical areas where smarter data and analytics could be utilised.
“At any given time, without sufficient visibility into the data, projects can go significantly over budget, taking longer to complete,” explains Riggs Kubiak, CEO and co-founder of Honest Buildings, a data-driven project management and procurement platform for real estate owners.
“Technology shifts the power of construction data back into the hands of owners, which in turn helps with development planning and on-time, on-budget construction project delivery,” he said.
Other areas explored within the survey included; development approval timeframes, the rise of alternative funding, robotics and artificial intelligence (AI) and changing joint venture structures.
Ultimately, the research affirms the fact that rapidly changing markets are calling for business leaders to be clear on what the biggest challenges facing an organisation are.
The adoption of more data-driven business processes, particularly in the management of costs, feasibilities, due diligence and market forecasting will increasingly determine success within the property development industry.
To view a full version of Altus Group’s Real Estate Development Trends Report, please click here.
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