In five years, a building's value will be determined not only by its location and rental income but also by the quality of its technical operation data. Those already implementing "live" digital twins today gain a dual advantage: operational savings in the short term and increased value in the long term.
The commercial real estate market in Europe is undergoing a profound transformation. Most portfolios include buildings that were considered "modern" just five years ago but are now rapidly losing value. The reasons are evident and multi-layered:
1. Energy and carbon. The price of CO₂ under the national emissions trading system (BEHG) rose to €55/ton in 2025, and from 2026 the mechanism will become market-based. For gas heating systems, this means operating expenses will increase by 10-15% annually. 2. Regulation. The new version of GEG and the EPBD directive require accelerated improvements in building energy efficiency and data transparency. Buildings with low energy ratings risk losing tenants and access to financing. 3. ESG reporting. The implementation of CSRD and ESRS E1/E2 standards makes operational data part of mandatory non-financial reporting. For many owners, this is a stress test: energy and technical information in their portfolios is fragmented and unreliable.
As a result, regulatory risks are growing, operating costs are increasing, and the cost of capital is under pressure. The difference between buildings that comply with ESG standards and those that do not is already reflected in valuations and financing rates. According to consultants' estimates, the so-called brown discount - a discount on inefficient, non-ESG-ready assets - has reached 10-20% of value.
Until now the operation of most buildings remains reactive: servicing when something breaks down, checking according to schedule, analysing manually. Data on the operation of utility systems is incomplete, fragmented and often unsuitable for analysis. Automated systems such as BMS, EMS and SCADA exist, but are rarely integrated with each other; the results of inspections and contractor reports are stored in separate files. As a result, management decisions are made based on “feelings” rather than objective data. Small deviations, each insignificant on its own, collectively translate into significant losses of energy, water and staff time. This approach was tolerable in an era of cheap energy and weak ESG control, but today it has become economically and regulatorily unsustainable. The situation seems paradoxical: even facilities built to 2010s standards do not meet the new challenges. Building infrastructure simply cannot keep up with changing standards and expectations. This is the main pain point of operational economics: energy and maintenance costs are rising, but owners do not see why. Every percentage point of inefficiency in utility systems is directly reflected in Net Operating Income (NOI), and therefore in asset capitalisation.
To bridge the gap between modern standards and outdated operating models, a new technological category is emerging in the sector: “live digital twins.” A “digital twin” is traditionally understood to be a BIM model supplemented with operational data. It is a convenient tool for visualising and storing information, but it remains static: such a model knows what has been built but does not know how the building lives. Modern IIoT solutions (such as HiPerWare) take the next step: they combine BIM data with IIoT telemetry and apply artificial intelligence algorithms to analyse system behaviour in real time. Such a twin transforms from a static to a “live” system that actually senses what is happening in the building. Instead of selective analysis of individual parameters, it automatically compares hundreds of interrelated processes: supply and return temperatures, differential pressure, electricity consumption, pump vibrations, air quality, and the presence of people in rooms. AI detects anomalies at the level of system operating patterns, rather than rigid rules. This is difficult and expensive for an operator to notice during visual inspection.
The first live digital twin platforms (such as HiPerWare) demonstrate how this transition is being implemented in practice: a building ceases to be an isolated utility system and becomes a data-driven asset - managed in real time, transparent to investors and resistant to regulatory risks. 1. Reduction in operating expenses (OPEX). Real-world cases show that automated telemetry analysis and algorithmic control of system operating modes can reduce energy consumption by 15-25% and repair and maintenance costs by 20-30%. For a building with an operating budget of €1 million per year, this translates into savings of €150-200 thousand annually. 2. Increased ESG transparency. The system automatically generates energy and technical reports that comply with EED, GEG and CSRD requirements. This provides the owner with evidence for auditors and investors, and the building with a higher ESG rating. 3. Risk and capital management. The digital twin detects deviations before they turn into losses, whether it's an inefficient chiller or an unbalanced heating circuit. This directly affects Net Asset Value (NAV), Net Operating Income (NOI) and Debt Service Coverage Ratio (DSCR) - indicators used by banks to assess the quality of collateral. 4. Investment sustainability. Properties with proven digital infrastructure and monitoring systems fall into the category of “green-eligible assets”, which facilitates access to sustainable financing (green bonds, sustainability-linked loans).
New legislation makes digitalisation not an option, but a necessity. • GEG 2024/2025 tightens energy efficiency and renewable energy requirements for both residential and commercial buildings. A key change is the transition from calculation models to verified operational data. • EPBD Recast 2024 introduces digital building passports and requires national renovation plans to be based on real measurable indicators. • BEHG Phase II (from 2026) replaces fixed CO₂ prices with an auction mechanism, increasing the risk of unpredictable costs for buildings without monitoring and accounting systems. • CSRD / ESRS make operational data part of non-financial reporting for large companies and investors, creating a new standard for ESG transparency. In fact, regulations are pushing the market towards a single solution: complete digital transparency of operations.
There is a growing realisation that buildings are no longer just concrete and engineering, but a stream of data. Those who are already implementing “live” digital twins today enjoy a double advantage: operational savings in the short term and value stability in the long term. In the coming years, it is precisely these digital platforms that will form the basis of a new model of real estate ownership and operation, where value is determined not only by location and rental income, but also by data quality.
Yes, the HiPerWare platform can function effectively by using actual operational data and schematic diagrams, eliminating the need for a comprehensive 3D model while still providing meaningful insights.
The HiPerWare platform simplifies ESG (Environmental, Social, and Governance) and CSRD (Corporate Sustainability Reporting Directive) reporting by automatically documenting all operational parameters in a digital circuit. This automation ensures consistent, up-to-date data for sustainability compliance and performance tracking.
By basing decisions on real data rather than human intuition, HiPerWare helps organisations minimise human error and subjectivity. It continuously learns from historical data, identifies recurring patterns, and provides insights that support smarter, evidence-based decisions.
