In the context of the real estate industry facing strong changes in market demand and increasingly fierce competition, optimizing value from existing assets and resources has become a top priority for businesses. The Unlock Business Value (UBV) model is emerging as a breakthrough strategy, helping real estate companies not only maximize their potential but also build a foundation for sustainable growth.
Unlock Business Value: Definition and Potential in the Real Estate Industry
Unlock Business Value is a strategic model that focuses on redefining how to manage and exploit value from real estate assets. Instead of focusing only on short-term profits from selling or leasing, UBV aims to optimize the use of assets throughout their life cycle, from management, development, to customer service.
With the support of technology, big data, and modern analytical tools, UBV allows businesses to:
- Increase asset management efficiency by reducing operating costs and enhancing usage value.
- Optimize cash flow through long-term investment strategies and the ability to respond flexibly to market fluctuations.
- Enhance customer experience, thereby increasing brand value and business benefits.
Pioneers in the Unlock Business Value Model
Some leading real estate companies have pioneered the UBV model to deliver outstanding results. Here is how they implement this model through each stage:
1. Asset Management
CapitaLand, one of the largest real estate groups in Asia, is a typical example of applying the Unlock Business Value model to asset management.
CapitaLand has deployed a smart asset management platform with the integration of advanced technologies such as:
- IoT (Internet of Things): Track and control energy usage in real time.
- Big Data Analytics: Evaluate the performance of each asset to optimize operations.
- AI (Artificial Intelligence) application: Predict maintenance issues, helping to minimize risks and downtime.
2. Project Development
Emaar Properties, a leading real estate developer in the Middle East, is famous for its iconic projects such as Burj Khalifa and Dubai Marina. The company has applied the Unlock Business Value model to optimize the project development process, enhance investment value and meet diverse market needs.
Emaar has applied the Unlock Business Value model to the project development process with the following strategic steps:
- Application of data and market demand analysis:
- Using data analysis tools to predict customer demand for living space, commerce, and services.
- Selecting project development locations based on the potential for long-term real estate value increase.
2. Integrating sustainable elements:
- Designing smart buildings with energy-saving technology and minimizing environmental impact.
- Using environmentally friendly construction materials to meet international standards for sustainable development.
3. Create a connected living space and diverse experiences:
- Develop complexes that combine housing, shopping centers, offices, and entertainment to optimize overall value.
- Focus on green spaces and community amenities to improve the quality of life.
3. Customer Service
Zillow, the leading real estate platform in the US, has revolutionized the way real estate companies provide customer service through the Unlock Business Value model. With a strong focus on technology and data, Zillow has enhanced the customer experience, adding value to buyers, sellers, and investors.
Zillow applies the Unlock Business Value model to improve customer service through the following strategies:
- Applying AI and Machine Learning technology:
- Using AI to analyze user behavior, thereby recommending properties that suit their needs.
- Deploying Zestimate, a real-time, accurate real estate valuation tool, gives customers more confidence in their buying or selling decisions.
2. Personalize the customer experience:
- Zillow provides a platform that helps users track the entire real estate buying and selling process, from searching, contacting agents, to signing contracts.
- Integrating financial services such as mortgage assistance and cost assessments to save customers time.
3. Enhance direct connections:
- Zillow Offers, a direct real estate acquisition program, helps customers sell their homes quickly without going through a broker.
- 24/7 chat service and mobile app support help answer customer questions anytime, anywhere.
Benefits of the Unlock Business Value model
Implementing UBV brings many practical benefits, helping real estate businesses create sustainable value:
- Increased flexibility: UBV helps businesses respond quickly to market fluctuations, thereby maintaining competitiveness and maximizing opportunities.
- Optimizing cash flow: Through effective management and smart investment, companies can improve cash flow, minimize financial risks and increase profitability.
- Sustainable growth potential: By focusing on long-term value, UBV helps businesses build a stable growth foundation and reduce dependence on short-term fluctuations.
How can businesses get started with Unlock Business Value?
- Assess the current situation:
- Businesses need to assess their existing assets, management capabilities, and growth potential.
2. Apply technology:
- Invest in supporting technologies such as AI, IoT, and data analytics to collect and use information effectively.
3. Focus on customers:
- Put customers at the center of every strategy, from product design to service delivery.
4. Collaborate and learn:
- Collaborate with strategic partners and learn from companies that have succeeded with the UBV model.
Conclusion
The Unlock Business Value model is not only a business strategy but also the key to opening up sustainable growth opportunities in the real estate industry. With outstanding benefits, UBV will be a strategic direction for businesses that want to lead the market and optimize the value of their assets.
MP-HOLDINGS is proud to be a pioneer in applying the Unlock Business Value model, accompanying customers and partners on the journey of creating sustainable values in the real estate industry.
