Property Operations in 2024: Navigating a Transformative Landscape with Integrated Solutions, Automation, and Purposeful Innovation
Prabhu Ramachandran, CEO & Co-founder of Facilio
In the landscape of property operations during 2023, a noticeable trend was the consolidation of services within the industry. Instead of relying on individual point solutions, there was a significant movement towards integrated solutions. This shift suggests a departure from the traditional approach of addressing specific challenges with isolated tools and a move towards comprehensive platforms that offer a holistic approach to property management.
As we look forward to 2024, it becomes clear that the demand for platform-driven models will continue to be a driving force in the industry. However, what will set successful entities apart are solutions that are purpose-built and have a tangible impact. In other words, the winners in this space will not only provide a broad range of services through integrated platforms but will also be distinguished by their ability to address specific challenges with precision and deliver outcomes that make a real difference.
Property Operations 2024
Cost optimization remains a paramount concern for property operators. In a recent survey of 500 facility managers, the top KPI tracked was maintenance spend and cost savings. In response to this, we foresee an increasing reliance on automation for cost optimization, particularly in the areas of energy efficiency and business process automation.
We also expect software buying decisions to become more strategic; a piecemeal approach to software buying will be replaced by portfolio level priorities. Despite tech spend reductions in various industries, there is a considerable uptick in demand for AI-driven tools that directly impact revenue by lowering operational and energy costs. For real estate owners and operators, the focus in 2024 will be on improving workforce efficiencies and enhancing tenant experiences. These priorities align with the industry’s evolution towards purposeful and impactful proptech solutions.
At the recently concluded COP28 meetings, the Buildings Breakthrough was launched with the support of 27 countries. The partnership aims to make ‘near-zero and resilient buildings’ the new normal by 2030, addressing the fact that the building sector alone accounts for nearly 40 percent of global energy-related CO2 emissions, 50 percent of extracted materials, and one-third of global waste. Hence decarbonisation will continue to be a top priority.
Yet many building owners and operators don’t know where to start or how to navigate the path to net zero. IoT-led building operations software will play a critical part in fast-tracking this journey, and we advocate the “crawl, walk, run” approach – first monitor, then predict and finally optimize/control.
Property Operations 2024: Conclusion
In the coming year, the property operations landscape will witness a sustained adoption of platform solutions. Automation will play a crucial role in optimizing costs, while the integration of AI is expected to elevate both workforce efficiencies and tenant experiences. Additionally, the pivotal role of IoT (Internet of Things) will be underscored in the pursuit of achieving net-zero objectives and optimizing energy usage. This multifaceted approach signals a forward-looking industry, leveraging technology to enhance operational efficiency, sustainability, and overall user satisfaction.