CBRE Proptech Index 2019: how developed are office buildings in CEE in terms of technologies?

According to a CBRE recent research – The Proptech Index 2019, 70% of occupiers from Central and Eastern Europe intend to raise their level of real estate technology investment in the next few years mostly in a more people – centric direction. A new generation of consumers and workers (mostly Millennials and Gen Z) are incentivizing employers and landlords to recognize that technology is crucial in their workplace.

Moreover, 30% of analysed companies see smart building technology as a factor in choosing a building. Therefore, CBRE Research has undertaken a study in CEE region to find answers to the following questions: how technologically advanced are office buildings and what are tenants’ digital needs?

The Proptech Index 2019 study on the level of technological advancement of office buildings was undertaken in 6 capitals within CEE region: Warsaw, Bratislava, Prague, Vienna, Budapest and Bucharest. A total of 79 office buildings located in the most prestigious districts with modern developments in CEE capital cities were analysed. 10 buildings located in Prague were selected in this study in which data were collected and analyzed. The information gathered not only establishes the level of technology implemented in buildings, but it also explains a current state and expectation of the tenants regarding the usage rate of new technologies.

Jana Prokopcová, Head of Research & Consulting at CBRE
Integrated applications are available in only 32 per cent of analysed buildings. Among the first are for example Connected by Skanska, Spaceflow in office projects CA Immo or Ghelamco and Globalworth. We can expect an increase of PropTech start-ups and solutions of global players such as Siemens, which will help integrate and use all functions, or at least a significant part of them, according to the tenant’s needs.
Jana Prokopcová, Head of Research & Consulting at CBRE

The most popular functionalities which employees would like to have in their workplace are personalised lighting, heating and AV control. Almost half of surveyed employees marked these options. The second desired functionality was guest arrival notification. More than 66% of respondents in Slovakia, 65% in Romania, 51% in Austria, 46% in Czech Republic and 41% in Poland would like to have such functionalities but currently don’t use any application for that purpose. Employees would also like to have the possibility of integrating services beyond the internal building’s premises like reviewing entertainment and restaurant options, seeing current utilization and making bookings: gym class / beautician / hairdresser appointment or order a lunch from a neighbouring restaurant.

Following the Proptech Index 2019 study, some trends are clearly outlined: the buildings’ owners or managers focus their attention on increasing energy efficiency and sustainability, thus lowering the operational cost base. In the same time, Landlords will have to compete for their clients by adding new features even if the CEE countries are at the beginning of the process of implementing new integrated digital solutions in the workspace. The tenants are looking for integrated solutions that will save them time and will be convenient. This sets the basis for a standardization or platforms that will facilitate easier integration of services that are much needed by the real estate players.