Market Analysis - Connected Properties
Connected properties are quite rare today. Out of all properties, only a handful are equipped with indoor systems that are integrated with the building infrastructure. In Stockholm, it is estimated that only 6% of the properties are equipped with 4G mobile indoor systems. This modest percentage of connected properties highlights the significant potential for indoor mobile systems in the future, as it will be a requirement for further development within digitalization, smart buildings and overall business day-to-day operations. The few property owners who have installed an indoor system, where the tenant pays extra, most often raise the rent surcharge rather than the base rent itself.
The implementation of 5G is expected to significantly promote smart building development. Increased connectivity with 5G provides superior indoor network, which is in modern buildings. Tenant satisfaction improves, correlating with lower vacancy rates and faster leasing. The advancement of digitalization with 5G is becoming a general expectation for all types of real estate. 5G also ensures that systems are future-proofed and maintain competitiveness by supporting the latest technological advancements, including AR/VR applications and high-density networks. Economic benefits include increased building connectivity, which can lead to higher property values and reduced vacancies. Additionally, there is a growing need for data-intensive applications that require 5G's high speeds and low latency.
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240110
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English
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