At its core, Smart Cities is about efficiency. The concept, and the myriad of emerging technologies supporting it, create the possibility of cities that function better than they currently do. The real estate industry has the potential not only to shape the evolution of Smart Cities, but also be one of the key beneficiaries of this new technology.
Key implications of Smart Cities technologies for participants in the real estate sector include the following:
- Developments with Smart technology will attract price premiums: As well as being desirable for tenants, Smart developments are attractive to buyers as they enable efficient utilisation of buildings and lower operating costs.
- Essential for maintaining relevance in the market: These technologies allow for more interactive and flexible services. Inactive players will not meet the growing expectations of customers and be left behind.
This insights piece aims to add perspective around the concept of Smart Cities and investigates its potential impact on urban development. We believe an early proactive approach to identify the impact of Smart Cities and a strategy to capitalise on this change will be key to success.