Everyone is talking about digital twins. But often there are still prejudices and reservations. Time to debunk some common myths about digital twins, to highlight real-world use cases and to demonstrate how this technology is shaping the future of real estate
The real estate industry, traditionally defined by spreadsheets, reactive maintenance and siloed systems, now faces unprecedented pressure to digitise.
With the increasing demand for sustainability, operational efficiency and adaptability, digital twins have shown up as a technology capable of profound transformation.
By creating real-time digital replicas of physical assets, digital twins optimise decision-making, reduce costs and enhance tenant experiences, throughout the asset’s lifecycle.
But just how impactful are digital twins? The numbers create a compelling case:
- 30% savings in energy costs and a 20% reduction in CO2 emissions, making it instrumental for sustainability efforts (TV 2024).
- Predictive maintenance powered by digital twins reduces unplanned downtime by up to 25%, while extending the lifespan of assets by 30% (Dinter et al, 2022).
- Properties utilising digital twins experience 10%–15% faster leasing cycles due to virtual tours, enhanced transparency and data-backed decision-making (SmartViz, 2024).
- The integration of digital twins into construction projects reduces waste by as much as 15%, while cutting project delays by 10%–12% (Lyytinen, 2021).
Despite these impressive figures, misconceptions persist about the technology’s scope and applicability. Let’s explore two of the most influential myths:
Myth #1: Digital twins have high data barriers
Misconception: Digital twins require exhaustive data collection, expensive sensors and an overhaul of existing systems to work effectively.
Reality: In truth, even older buildings can benefit from digital twins, as long as they have, or can be retrofitted with, basic data streams.
A striking example is BENO Holding, a developer managing a portfolio of properties over 20 years old. By leveraging the Nemetschek dTwin platform, they:
• Centralised building information to improve planning and renovations, cutting delays.
• Reduced CO2 emissions by optimising energy usage and resource management.
• Enabled virtual inspections, which significantly reduced the need for costly site visits.
This demonstrates that digital twins aren’t exclusive to cutting-edge projects. They can modernise and add value to legacy assets, making them relevant for today’s sustainability-focused market.
“One of the most common misconceptions about digital twins is that they require exhaustive, highly detailed data and sophisticated, ultra-realistic 3D models to be effective. In reality, a digital twin can start small; a simple schematic of a building enriched with a few important data streams, like occupancy or environmental metrics. Digital twins are not about perfection. They are about functionality and outcomes.”
– Andrew Knight, Head of Technology at RICS
Myth #2: Digital twins are a luxury, not a necessity
Misconception: Digital twins are often dismissed as high-tech tools that are “nice to have” but not essential.
Reality: Digital twins are becoming essential for modern real estate management. From meeting Environmental, Social, and Governance (ESG) compliance standards to addressing tenant demands for smarter, more efficient spaces, they solve pressing problems faced by real estate professionals today.
The ROI on digital twins far outweighs their costs over time, thanks to their ability to lower expenses and increase efficiency. For example:
- Predictive maintenance powered by digital twins reduces asset downtime by 20%, saving thousands annually in repair costs (TV, 2024).
- Energy optimisation reduces operating expenses, contributing to significant cost savings.
- In one Chinese hospital, digital twins were used to monitor operations, leading to reduced energy consumption and minimised maintenance needs (Peng et al, 2020).
Use cases: The numbers across asset classes
The value of digital twins lies in their versatility. They can be applied across a range of asset classes to solve industry-specific challenges.
Whether modernising aging infrastructure, improving tenant experiences or optimising energy usage, digital twins provide measurable returns on investment. From industrial warehouses to bustling hotels and cutting-edge healthcare facilities, the real-world results speak volumes. Below, we explore how digital twins deliver value in specific scenarios.
Industrial properties
Industrial properties, which often contend with aging infrastructure, high energy costs and maintenance inefficiencies, benefit immensely from digital twins.
- By creating real-time models of equipment and operations, digital twins cut unplanned maintenance costs by up to 25%, translating into significant operational savings (Dinter et al, 2022).
- IoT-enabled insights drive energy consumption down by an average of 18%, reducing emissions while achieving ESG compliance.
Commercial real estate
The commercial sector faces challenges tied to shifting occupancy trends, hybrid work models, and tenant retention.
- By analysing occupancy trends, digital twins help optimise workspace usage and energy consumption.
- Retail spaces using footfall simulations saw a 10% increase in tenant sales by enhancing store layouts (Shekhawat, 2023).
Hospitality
Hotels rely on guest satisfaction and operational efficiency to remain competitive.
- Hotels using digital twins experienced a 20% improvement in customer satisfaction and a 15% rise in booking conversions through virtual tours and real-time data analysis (Puri, 2024).
- Dynamic pricing strategies driven by digital twins increased profitability by 10%, reflecting a new approach to revenue management.
Conclusion: Digital twins are the future – and the present
The data speaks for itself. Digital twins lead to:
- A 20% reduction in downtime and 30% longer asset lifespans translate directly into operational savings.
- Buildings account for 40% of global energy use, and digital twins are crucial for reducing this footprint.
- Across industries, digital twins drive higher satisfaction, retention and profitability, with numbers like 15% higher booking conversions and 10% increased tenant sales.
As the demand for sustainability, efficiency and tenant satisfaction continues to grow, digital twin platforms like dTwin by Nemetschek are rapidly becoming a necessity, not a luxury. The competitive edge goes to those who embrace this technology today. By enabling better decision-making, reducing costs, enhancing tenant experiences and driving sustainability, digital twins offer a powerful tool for transforming the real estate industry.
The future of real estate is digital and those who adopt digital twins will be at the forefront of innovation. This ensures they stay ahead of shifting market demands; all while creating smarter, more efficient buildings.
