As the SS&C team heads to the MIPIM real estate conference in Cannes, France we reflect on several key themes that we see developing in the real estate market in 2024:
- Continued macroeconomic uncertainty: We predict it will be another year of weak growth, although somewhat stronger than the previous one; economic growth and fundamentals will be uneven and market-specific.
- Valuations: The property investment landscape should gradually improve, with our expectation that values will bottom out in 2024, providing more predictable valuations.
- Capital markets: Real estate credit strategies will remain in focus as long as the cost of debt remains elevated.
- Investing activity: Balancing defensive and offensive strategies will be critical for real estate investors.
- Office quality differentials: The office market is still over-supplied, which is leading to a renewed focus on user appeal while leading to higher voids among poorer-quality buildings.
In the face of these challenges and opportunities, using real estate data effectively is still a key to managing underlying portfolios. Managing data from multiple property managers and underlying property accounting systems is time-consuming and error-prone, and introduces a level of risk that creates operational inefficiencies. Real estate managers need the ability to harness this data and turn it into actionable insights that can help them better manage their real estate portfolio, streamline operations, and provide better visibility and oversight.
Real estate service providers can add value by offering a global support model with expert resources that specialize in normalizing data sets coming from multiple systems in multiple formats, applying highly controlled review and oversight functions, augmenting and improving workflow processes, and enabling managers to meet specific accounting and reporting timelines. Managers and investors manage real estate portfolios as their core focus and competency they don’t focus on developing technology systems. Service providers can offer additional value through the cutting-edge technology and resources required to aggregate and normalize data from disparate systems and sources.
Real estate managers and investors can realize several benefits by utilizing proven service providers to deliver investment-level oversight, especially as the number of investments, the volume of transactions, and the number of property managers and systems increase, which in turn increases the potential risk for errors.
How SS&C Can Help
SS&C offers a suite of comprehensive, modular real estate services to a diverse, global client base and has extensive experience supporting the needs of organizations that invest in and manage a broad range of real estate investments across the full spectrum of legal entity structures. Ownership of the entire value chain, from the technology and data centers to the processing infrastructure and personnel, provides SS&C with tremendous control over the quality of deliverables to our clients. We build, own and operate our own proprietary, advanced and scalable technology platforms, and also offer the flexibility to work in our clients’ systems. Contact us to discuss how SS&C can help you take control of your data.
References:
https://www.jll.co.uk/en/trends-and-insights/research/global/global-real-estate-outlook
https://www.cbre.com/insights/books/european-real-estate-market-outlook-2024/macroeconomics
