Real estate is a cornerstone of the global economy, with the European commercial property sector alone valued at $10 trillion (€9.2 trillion) in 2024. As the sector evolves, the integration of technology is becoming an essential factor in operational efficiency, innovation and value creation.
Yardi, in partnership with the European Public Real Estate Association (EPRA), has once again examined the landscape of property technology (proptech) adoption in European real estate. The results of the latest survey revealed a growing shift towards digital transformation, with 66% of respondents agreeing that technology is no longer just an IT issue but a core business strategy. Furthermore, 41.8% of companies have already implemented multiple proptech solutions, demonstrating an increasing trend towards in-house digital strategy teams.
With that in mind, industry experts gathered to discuss the evolving role of technology in real estate. Richard Gerritsen, regional director for Yardi sat down with Antonio Rivas, CDO/CTO at MERLIN Properties, and Philippe Boyer, head of institutional relations & innovation at Covivio, to explore their perspectives on these findings, the current state of proptech and the barriers to widespread adoption.
Insights from the Webinar:
The Importance of Technology
The discussion began with a fundamental question, “Why is proptech important?” Rivas emphasised that technology is a driving force behind societal evolution and, in turn, the real estate sector. By leveraging technology, companies can “provide better services”, improve efficiency and “deliver enhanced returns to shareholders”.
Technology is going to make society evolve faster, as it’s doing very recently, especially with us and with the sector. I think it just allowed us to provide a better service and just to give a better return to the shareholders.
-Antonio Rivas, CDO/CTO at MERLIN Properties
Boyer echoed this sentiment, highlighting that buildings are already highly technological structures. Whether in new developments or refurbished assets, the challenge lies in finding the “right balance between high-tech and low-tech solutions”. Good technology, according to Boyer, is that which values client relationships, improves asset resilience and fosters innovation.
Is Technology Investment Just Lip Service?
Despite the consensus on the importance of technology, as highlighted, the recent EPRA survey revealed that actual investment levels in proptech remain relatively low. Gerritsen raised a critical point: “If technology is so vital, why isn’t there a proportional increase in investment?”
Rivas attributed this hesitation to the traditionally “conservative” nature of the real estate sector. Unlike industries that rapidly embrace new technologies, real estate firms prefer incremental, “secure steps” when implementing new solutions. He suggested that while change is happening, it is occurring at a more measured pace. Boyer shared a strategic perspective on investment, explaining that at Covivio, the team chooses to collaborate with the best tech providers, or as he quotes “best players,” rather than investing directly in startups. This approach allows them to leverage expertise while staying focused on their core business.
The Real Drivers of Tech Investment
When discussing what will ultimately drive increased investment in technology, the panellists pointed to two key factors – shareholder value and enhanced client services. For shareholders, proptech can help optimise operational costs and improve asset management. By deploying “smart building technologies”, companies can monitor energy consumption, optimise maintenance schedules and reduce operational expenses, ultimately enhancing ROI.
For clients, technology offers improved experiences and services. Rivas shared how MERLIN Properties developed a tenant app that “connects different buildings”, allowing users to book meeting rooms, access premium services and enhance their workplace experience. By integrating data-driven solutions, real estate firms can tailor services to tenant needs, fostering long-term relationships and improving asset desirability.
The Power of Data: Unlocking Value for Clients
One of the most significant benefits of technology in real estate is data-driven decision-making. As mentioned, Boyer highlights how smart building technology, such as IoT sensors and data analytics, helps both landlords and property management teams better understand building usage patterns. This enables more efficient space utilisation, sustainability initiatives and improved tenant satisfaction.
Tech brings a new value, through IOTs and sensors (which create data), we know better how the building works… I would say it magnifies the way we manage a building.
– Philippe Boyer, head of institutional relations & innovation at Covivio
Rivas expanded on this, emphasising that the real value of data lies in its ability to provide actionable insights. Whether it’s optimising energy consumption, improving facility management, or creating personalised tenant experiences, leveraging data effectively allows real estate firms to maximise efficiency and profitability.
When you have smart buildings, you can get lots of information, lots of data. If you use it well, you can start reducing costs that were unnecessary for giving the same service in different ways.
-Antonio Rivas, CDO/CTO at MERLIN Properties
Embracing the Future of Proptech
The EPRA webinar underscored the growing role of technology in reshaping the real estate industry. While challenges remain in terms of investment and strategic implementation, the consensus is clear, proptech is not a passing trend but a fundamental driver of future success.
You can use tech to know more about your assets, and think about different things, for example, revenues or spaces that are not being used. It helps you to think differently, to be innovative in the ways you can increase revenue.
-Antonio Rivas, CDO/CTO at MERLIN Properties
Watch the full webinar to learn more insights from these industry leaders.