The Ultimate Guide to Saving Money with Digital Twin Technology in Real Estate

Written By Dave Frazee
 
 

An Introduction

In real estate, managing operational costs and improving efficiency are constant challenges. Digital twin technology is emerging as a solution to these issues, offering a way for developers, property managers, and AEC professionals to optimize building operations, reduce costs, and enhance decision-making. By creating a real-time, virtual replica of a physical building, digital twins provide actionable insights into energy usage, maintenance needs, and space utilization.

This guide explains how digital twins can save your organization money, backed by real-world examples from across industries.

What Is a Digital Twin?

At its core, a digital twin is a virtual model of a physical asset, like a building, that reflects real-time data from IoT sensors and other sources. Digital twins give property managers deep insight into structural health, energy consumption, and even space usage, enabling more informed decisions. The technology initially made waves in industries like aerospace but has quickly become a transformative tool in real estate.

How Digital Twin Technology Saves You Money

  1. Operational Efficiency
    Managing multiple properties often means significant travel and coordination costs. Digital twins make it possible to monitor and control building systems remotely, reducing on-site visits and enabling more efficient management of HVAC, lighting, and other systems. Platforms like Willow, Twinview and Fexillon allow property managers to save time and resources by overseeing all assets from a single interface.

  2. Predictive Maintenance
    One of the biggest advantages of digital twins is their ability to predict maintenance needs before costly breakdowns occur. By analyzing real-time data, digital twins can forecast when equipment will require servicing, cutting maintenance costs by up to 25% while extending the lifespan of essential systems.

  3. Energy Optimization
    Digital twins track energy consumption in real-time, helping property owners and managers optimize energy use. With sustainability becoming a key focus in real estate, buildings that use energy efficiently are more attractive to investors and tenants. Lower energy costs also mean higher profitability for building owners.

  4. Space Utilization
    Many buildings have underutilized areas that could be optimized. By analyzing how spaces are used in real time, digital twins help property managers repurpose space effectively, avoiding unnecessary renovations and saving on capital expenditures.

  5. Improved Asset Lifecycle Management
    Digital twins offer complete visibility into the lifecycle of critical building systems, allowing property managers to optimize their performance, extend their lifespan, and reduce the need for expensive replacements. By continuously monitoring equipment and building components, digital twins help ensure timely upgrades and repairs, leading to significant savings on capital expenditures over the long term.

Real-World Examples of Digital Twin Success

  1. Hickman Building, London
    This building achieved SmartScore Platinum certification by using digital twins to optimize indoor conditions, reduce energy consumption, and improve tenant satisfaction. This led to reduced operational costs and an increase in property value.

  2. Hong Kong International Airport
    In the midst of a major expansion, Hong Kong International Airport leveraged digital twin technology to minimize disruptions. By integrating real-time data into their BIM system, they identified and resolved potential issues before they escalated, saving both time and money.

  3. Veolia Water Technologies
    Veolia used digital twins to improve flood management and optimize their municipal water infrastructure. This allowed them to manage resources more effectively, reducing risk and operational costs.

  4. Healthcare Trust of America (HTA)
    HTA, the largest owner of medical office buildings in the U.S., implemented digital twins to optimize their building performance and streamline property management. This led to reduced operational costs and improved experiences for both patients and staff.

  5. Real Estate Analytics, Singapore
    During the pandemic, Real Estate Analytics turned to digital twin technology for their 8PROP 360 platform, increasing property sales by 20% and boosting engagement with virtual tours by 50%. This shows how digital twins can dramatically improve both operational efficiency and customer satisfaction​

How to Get Started with Digital Twins

  1. Assess Your Needs
    Identify the areas where a digital twin would provide the most value. Focus on high-impact areas like maintenance and energy consumption to maximize your return on investment.

  2. Choose the Right Platform
    Platforms like Twinview and Matterport offer scalable digital twin solutions. Matterport is particularly strong in creating virtual replicas for remote inspections, while Twinview excels at real-time performance monitoring.

  3. Integration and Scaling
    Start small—perhaps with a single building or a specific system—and expand based on the success of your initial implementation. This gradual integration will make the transition smoother for your team.

Key Takeaways

  1. Digital twins offer real estate professionals a powerful tool to cut costs and optimize building performance.

  2. Predictive maintenance and energy optimization provide the greatest cost-saving opportunities.

  3. With examples like the Hickman Building and Hong Kong Airport, it’s clear that digital twins are not just a trend—they’re a critical innovation for the future of real estate management.

Are you ready to get started with digital twins?
Contact us for a consultation to discuss how this technology can be tailored to your needs.

References:

  1. The Digital Revolution: How Digital Twins Are Elevating Property Valuations in Real Estate. Twinview, 2023.
    https://www.twinview.com/articles/the-digital-revolution-how-digital-twins-are-elevating-property-valuations-in-real-estate

  2. How Digital Twins are Revolutionising Predictive Maintenance in the Real Estate Industry. Twinview, 2023.
    https://www.twinview.com/articles/how-digital-twins-are-revolutionising-predictive-maintenance-in-the-real-estate-industry

  3. 12 Best Digital Twin Examples Across Industries [2024]. Matterport, 2024.
    https://matterport.com/industries/digital-twin

  4. Digital twin trends in 2024. HCLTech, 2024.
    https://www.hcltech.com/tech-trends/digital-twin-trends-2024

  5. 5 Digital Twin Examples Show Industry Adapting to the 21st Century. Autodesk, 2024.
    https://www.autodesk.com/redshift/5-digital-twin-examples-show-industry-adapting-21st-century

Dave Frazee