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Why energy costs are exploding and what that means for your real estate portfolio

How can rising energy costs negatively impact property returns?

Energy costs have risen steadily in recent years and the cost of supplying energy to a property can account for a significant proportion of operating costs. Rising costs are making it increasingly difficult for property managers to maintain the value of their property and the associated return without having to make major investments. Another factor that can negatively impact property returns is the increasing demand for energy-efficient buildings. With the introduction of laws and regulations designed to improve the energy efficiency of buildings, properties that are not energy efficient are becoming less attractive. One way to avoid these rising energy costs is through the use of energy efficiency measures. By implementing energy efficiency measures, energy cost reduction can increase a property's return on investment. By incorporating IoT sensors into properties and using AI to analyze the data, energy costs can be effectively reduced.

Which factors are driving up energy costs?

In recent years, the ancillary costs for heating in real estate have increased sharply. This is partly due to the increased prices for fossil fuels such as oil and gas, but also to the inefficient use of energy in many buildings.

How can property owners reduce tenant costs to increase the attractiveness of their property?

The ancillary costs for heating have risen steadily in recent years. It does not matter whether it is a single-family house, an apartment or an office building. Fossil fuel prices have risen sharply in recent years, and heating costs have followed suit.

The good news is that there are several ways to reduce utility heating costs. IoT and AI-driven energy optimization allows property managers to increase the energy efficiency of their buildings, thereby reducing heating costs.

Are operational optimization measures such as IoT and AI-controlled heating optimization worthwhile for real estate portfolios?

We have prepared a calculator for you. Simply and quickly enter your key figures for the selected building and the return-on-investment is output.

👉 Contact us now and we will give you our ROI-Calculattor for energy management for free.

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