Real estate has been slow in terms of digital transformation, which is the use of digital technologies in different aspects of a business. Some of these digital technologies include data analytics, artificial intelligence and mixed reality, and it is only in the past two years that this industry is taking advantage of these innovations. Yes, the real estate industry is moving towards digitalization and this is something real estate investors need to consider moving forward as they will have to ride the wave of changing times.
In particular, real estate investors will not only have to use the digital infrastructure, but also invest in it. Digital infrastructure refers to physical assets such as data centers, fiber optic cables, submarine cables, cell sites, and macro towers. These enable connectivity and are therefore essential to both digital transformation and the digital economy. By creating appropriate zones for these real digital assets and working with digital businesses to build infrastructure, real estate developers can help ensure fast and reliable connectivity for their communities and support digital economies.
That being said, here are 4 reasons why today’s digital infrastructure should be a priority for any real estate investor.
Digital infrastructure is fundamental to society
Over the years, the role of digital infrastructure in society has grown, and this role has only grown over the past two years. Above all, the COVID-19 pandemic has explained why adequate, high-quality digital infrastructure is vital for all societies.
Among other things, digital infrastructure allows communities to stay informed through media sources, allows families and friends to connect with each other, and makes working from home viable. It even kept economies afloat during this pandemic through e-commerce, while also making telehealth and distance learning possible.
Needless to say, digital infrastructure will be essential in the future of a fully functioning society, which is all the more reason for real estate investors to start including digital infrastructure in their planning and invest in it where possible. . People will ask for it and investors must be able to give it.
Digital infrastructure will be in high demand
Since digital infrastructure is more than fundamental to a company, it follows that the demand for it will continue to increase. Consider: Blended learning – the mix of face-to-face interaction and virtual classrooms – is expected to be a part of post-pandemic life, while e-commerce is expected to gain even more momentum in the years to come. The use of the Internet as a whole is also growing exponentially, with more and more people using it for work, school, entertainment, business, etc.
Here are some statistics that highlight why digital infrastructure will be in high demand in the future:
- By 2025, there will be 38.6 billion devices connected through the Internet of Things, up from just 22 billion in 2018.
- Devices around the world will consume 74 zettabytes of data by the end of 2021 and 149 zettabytes by the end of 2024. That translates to an increase of over 50% in just three years, or an increase of 3,600 % between 2010 and 2021 and 7,350% increase between 2010 and 2024.
Needless to say, it’s crucial that real estate investors keep up with this predicted increase in demand for digital infrastructure, and the way to do it is to invest in it now.
Digital infrastructure can open up a fairer future for many
No matter who builds them, digital infrastructure will be built – in more numbers, in more locations and with increasing sophistication. That alone will translate into massive job creation, with digital infrastructure projects expected to provide well-paying jobs to hundreds of people.
But the benefits don’t end there. Technological leaders and telecommunications companies will be encouraged either to help set up training programs on digital infrastructures, or to support universities in strengthening their technological offerings. This assistance can then ensure a strong talent pool of graduates with the technical know-how and digital skills needed to take up jobs related to digitization and digital transformation.
Some areas that will have high demand for digital savvy workers include hardware design, network security, solutions, cloud computing, and application development. Importantly, jobs in these fields are among the highest paying, with hardware design engineers earning an average of $ 102,000 per year, network security specialists earning $ 113,000 per year, and cloud engineers earning $ 123,000 per year. year. More people in higher paying jobs will be a boon to the real estate industry as it means more people will have the money to buy property.
Digital infrastructure is the key to digital transformation
Industries must transform digitally if they are to take advantage of the digital solutions already mentioned. Having the right digital infrastructure will enable the real estate sector to accelerate this digital transformation, allowing it to keep pace with other sectors undergoing digital transformation, such as manufacturing, healthcare and finance.
Digital transformation can, in turn, open up more opportunities for real estate investors, not only locally but also internationally through improved connectivity. It will also automate repetitive tasks and paperwork, freeing up time for higher value work. It will even improve business processes within the industry, enabling greater efficiency, faster turnaround times, and improved data collection methodologies.