Swedish property owners are struggling to digitalize their properties even though most of them consider it important, according to a survey conducted by GlobalConnect among 300 property owners. Reducing overhead costs is a strong driver for the digital transition, but lack of time is a major obstacle. Nine out of ten property owners still have a long way to go before their portfolios are fully digitalized.
Digitalization is seen as important, but when it comes to drawing up business plans, other priorities take precedence. According to the respondents, the two biggest barriers to digitalizing their property portfolios are that other tasks are prioritized and a perceived lack of necessary competence within their own organizations.
Risk of falling behind
It is worrying that many do not prioritize or allocate budget for digitalization. From my perspective, the entire property sector risks falling behind. Artificial intelligence is becoming an increasingly important part of many industries, and property owners must join the trend. The ability to make data-driven decisions that improve efficiency should alone be reason enough to prioritize this issue, says Henrik Hammarström, Head of B2B at GlobalConnect Sweden.
Only one in ten have advanced far in digitalization
Most property owners in the survey have started digitalizing in some form. Examples include digital tools for lease agreements and booking laundry rooms, as well as security and access systems. However, only one in ten believe they have progressed far in the digitalization process. Many property owners use several different systems from multiple vendors for different parts of the property, which makes the process feel very difficult.
“It is hard to manage day-to-day operations while simultaneously implementing new systems,” says one respondent in the survey.
Differences depending on turnover
The primary reason property owners want to digitalize is to reduce overhead costs and gain better operational oversight.
When GlobalConnect compared companies, those with higher turnover (over 10 MSEK) tended to be further along than those with lower turnover. There is also a difference between municipally owned housing companies and privately owned property companies: the former generally consider themselves further ahead. Nevertheless, almost all companies state that the need for increased digitalization is significant.
Digitalization clearly becomes a question of cost. Property owners must identify other priorities that can be scaled back to move forward. The survey shows that they understand digitalization can reduce costs. Over the longer term, digital investments will, in many cases, pay for themselves, says Henrik Hammarström.
You can read the full survey in the report “Läge för digitalisering.”
How the survey was conducted
GlobalConnect commissioned Norstat to carry out a quantitative survey among 300 individuals who belong to the target group “property owners” in Sweden. The survey was conducted using CATI (computer-assisted telephone interviewing) with a structured questionnaire. The sample process was handled by an independent third-party panel provider, Norstat Sweden AB. The survey was fielded in June 2023.