Real Estate: The Value Drivers in 2018
At Kaizen Asset Management Services we understand a central consideration in real estate is the analysis of those factors that impact upon value, in particular how value is created in real estate development and asset management. We also understand the importance of understanding how real estate value may be destroyed is equally essential. Real Estate Investors have to have robust risk management models balanced with efficient operations and innovation due to constant change and digitization within the sector. At Kaizen Asset Management Services we focus on ensuring risk elimination and value maximization combined with a robust operational strategy. We have identified the following four value creation factors as critical:
1. Local Knowledge is Key
Like any investment, real estate investors mainly focus on their end-goals. What is common among almost all investors is the need for local knowledge – even in a global market, local restrictions can make or break an investors’ strategy. Often, the more attractive option is to partner up with a trustful asset management company who brings wealth of knowledge and expertise and who knows the rules of the game as well as major players in the region. Kaizen’s knowledge of the region provides real estate investors with a competitive advantage. Kaizen implements a diligent property management strategy and ensures effective execution of the real estate asset value creation strategy in this particular region.
2. Smart Data to Add Value
The art is knowing how to leverage technology to drive success and avoid failures for your real estate asset. Integrating technology deep into your organization is not only a useful step towards a more efficient, transparent operation, but it is also a necessary step to stay competitive in today’s rapidly shifting real estate industry. At Kaizen Asset Management Services it’s our ultimate goal to create actual value in data for our clients. Future buildings will rely more on advanced Building Management Systems (BMS) connected to a variety of sensors, actuators, and dedicated networks. Kaizen has identified that IoT integrated buildings that can collect and apply data deliver additional value and an improved experience for both real estate owners and occupants.
3. Cost Management and Scale
Real Estate Cost Management is a combination of technical expertise, collaboration, and commercial understanding. It’s crucial to a have proactive management strategy in place. It’s critical to manage at both operational and strategic level. Property Management has evolved over the past few years. Property management concentrates on the day to day operations, whilst Asset Management is centered around financial matters, maximizing the return on investment and the value of the property. At Kaizen, our real estate managers know how to perform both disciplines. Kaizen performs long-term financial forecasts and implements value creation strategies from day one, allowing our clients to grow their portfolios.
4. Expert Team
If you considering investing in real estate, one of the essential partners will be an experienced property management entity. Finding a qualified company or individual agent to manage your property is critical for real estate investors interested in capturing a maximum return on their investment. At Kaizen Asset Management Services our property managers continuously monitor the asset performance, they possess strong negotiation skills to ensure that operating expenses are lowered, and our property managers are educated with the best practices and training within the real estate sector.
As the market changes due to generational and technological shifts, it is essential for investors and real estate professionals to consider how these changes can benefit their portfolios. At Kaizen, we understand that while it may require updates to old processes, it would seem that these advances are opening up real estate to new demographics by providing, data, access, and expertise much more efficiently.
Curious how Kaizen Asset Management Services could help your organisation grow its real estate portfolio? Call us today for a free consultation at +971 4 558 6703 .