Real Estate

The cost of ignoring tech & Cybersecurity in Real estate

The High Cost of Unpreparedness

Financial Losses from Unpreparedness: In 2023, over half of American real estate companies reported plans to stop or decrease their investment in new technologies, missing out on potential efficiency gains and competitive advantages. (Forbes)
Agent Adoption Challenges: 39% of real estate firms identified agent adoption of new technologies as one of their top five challenges, indicating a significant barrier to leveraging tech advancements effectively. (Realforce)
Market Instability Due to Technological Lag: The real estate industry faces heightened risks due to market instability, as investors struggle to adapt to digital transformation, leading to financial distress. (RSMUS)
Cost Overruns in IT Projects: The average cost overrun for IT projects is 27%, with some exceeding 200%, highlighting financial risks associated with poorly managed technology initiatives. (Arxiv)

The Financial Impact of Cybersecurity Risks

Business Email Compromise (BEC) Losses: Real estate-related BEC scams cost nearly $446 million in 2022, up from under $9 million in 2015, making it a growing financial risk. (Clark Hill)
Ransomware Attacks: The global cost of cybercrime is expected to reach $24 trillion by 2027, with the average ransomware attack costing businesses $1.85 million in 2025. (Embroker)
Data Breach Costs: The average cost to remediate a data breach is over $8 million, with U.S. businesses incurring an average of $194 per compromised record. (Primerus)
Wire Fraud Incidents: In 2022, victims lost $446 million due to wire fraud in real estate transactions, a growing issue linked to cybersecurity vulnerabilities. (LinkedIn)
Regulatory Penalties: Bayview Asset Management faced a $20 million settlement over a data breach, underlining the legal consequences of failing to meet cybersecurity regulations. (WSJ)

The Need for Preparedness

Tech-Driven Transformation: With the rise of virtual tours, AI tools, and PropTech, real estate firms must adapt or risk falling behind. Virtual tours have become essential, with 99% of homebuyers using the internet in their search, while AI is already driving $630 million in investments in 2023. (Certifid, JLL)
Competitive Advantage: Embracing technologies like AI and cybersecurity not only prevents financial losses but also offers businesses a competitive edge by improving efficiency, customer engagement, and long-term growth. Cybersecurity alone can save millions by preventing costly data breaches and operational downtime.

THE PROBLEM

The real estate industry is increasingly disrupted by rapid technological changes. Without the right tools and systems in place, businesses risk missed opportunities, lost time, and significant financial losses. From unpreparedness in adopting AI-driven solutions to data breaches, real estate firms face growing challenges that can have devastating impacts on both operations and customer trust.

At Flux Technologies, we specialize in helping real estate firms navigate the complexities of technology and cybersecurity. Our solutions are tailored to the real estate industry, ensuring your operations run smoothly while protecting sensitive client data and systems.

OUR VALUE PROPOSITION

Proactive IT Solutions: With our remote monitoring, AI-driven insights, and real-time cybersecurity protection, we identify and resolve issues before they cause downtime or loss.
Streamlined Operations: Flux helps you adopt the latest PropTech innovations and digital solutions to boost productivity and stay competitive in a rapidly evolving market.
Data Security and Compliance: Protect your business from increasing cyber risks and ensure compliance with industry regulations like SOC2.