Real estate connectivity

Mikael Lundman, CEO at Proptivity, says to maximise the full potential of real estate innovation the built environment must act to resolve connectivity issues

Quality mobile connectivity now ranks above price and amenities when leasing a property, second only to location. Yet, despite rapid technological advancements, connectivity is faltering.

So, why is connectivity stagnating, and in some cases, regressing? As pressure mounts on the real estate industry to reduce its environmental impact sustainability initiatives inadvertently create a trade-off between connectivity and sustainability. Modern building methods and materials – all designed to improve sustainability performance – are blocking signals, creating a frustrating paradox.

This is a far-reaching dilemma. Poor connectivity is stalling the adoption of smart building technologies that could revolutionise real estate. Internet of Things (IoT) networks and building management systems (BMS), which rely on seamless connectivity, are being negatively impacted, affecting tenant satisfaction and operational efficiency.

TODAY’S CONNECTIVITY ISSUES

The conflict between sustainability and connectivity has created what feels like an impossible choice. But it shouldn’t be. Much needed, sustainable infrastructure has led to better-insulated windows and walls that trap heat, but use low-emissivity materials, hindering the transmission of mobile and Wi-Fi signals. Buildings experience poor propagation from outdoor signals as high-frequency networks, such as 5G, possess shorter ranges and are more easily obstructed than lower-frequency signals. Increasing energy efficiency standards unintentionally makes buildings impenetrable. This issue will only worsen with the advent of 6G, which relies on even higher frequencies.

Urban densification adds to the problem. As more people move to cities and hybrid work reshapes office demand, high-speed, quality mobile connectivity is non-negotiable. Evolving work models, married with the difficulty of poor in-building connectivity in some offices, have led to a rise in employees working from co-working spaces or cafés. This poses significant cybersecurity risks. A Verizon survey found that 32 per cent of companies prohibit public Wi-Fi use on work devices, while 77 per cent have increased cybersecurity spending to combat risks. Delivering reliable, high-speed indoor connectivity should be a priority to combat these threats—something companies are investing heavily in already.

IS THERE A WAY TO OVERCOME THIS?

Neutral-host solutions are a pathway to eliminating the need to choose between sustainability and connectivity. They involve third-party providers offering shared telecommunications infrastructure inside buildings, allowing mobile network operators (MNOs) to improve coverage and eliminate dead zones. Major telecom companies are partnering with neutral-host providers to enhance indoor coverage, for instance, Proptivity collaborates with BT Group, Virgin Media O2, and Vodafone.

The process begins by assessing a building’s coverage gaps and determining the required mobile connectivity level, ranging from basic 4G to high-performance 5G supporting gigabit speeds. Strategically placed indoor active antennas distribute signals evenly throughout the property, boosting connectivity for tenants, IoT devices, and BMS systems. Landlords can provide uninterrupted mobile coverage without relying on outdoor networks that struggle to penetrate modern buildings.

WHAT ARE THE BENEFITS OF A NEUTRAL-HOST SOLUTION?

Reliable connectivity benefits landlords, tenants, and MNOs. A Newsec report found that 89 per cent of prospective tenants consider good indoor coverage essential when selecting a property. This demand translates into increased rental yield. Landlords can charge up to 14 per cent more for properties with superior connectivity, and 33 per cent were willing to unconditionally pay higher rent for enhanced indoor mobile coverage. Buildings with indoor 5G systems also experience up to 50 per cent lower vacancy rates, highlighting the direct impact of mobile connectivity on leasing success.

Adopting neutral-host solutions supports the futureproofing of buildings. Ninety per cent of property owners acknowledged that mobile indoor systems are critical to real estate’s future, and 60 per cent of owners plan to install them. Leveraging this technology supports and gets ahead of the retrofit process, while improving tenant satisfaction, boosting their leaseability and minimising vacancies.

MNOs also benefit. Neutral-host technology provides high-quality indoor networks without the significant infrastructure costs typically associated with expanding coverage. Neutral-host technology enables telecom companies to offer superior indoor 5G services, increasing their market presence and enhancing customer experience.

Neutral-host solutions also help mitigate the risks of unsecured public networks. As companies tighten cybersecurity measures, having a secure, high-speed internal network is critical. Telecom providers prioritise security and privacy, making trust in these solutions a key factor. The decision by BT Group, Virgin Media O2, and Vodafone to adopt the technology underscores confidence in its reliability. Unlike traditional distributed antenna systems (DAS), the solution integrates digitally with MNO networks, ensuring quality connectivity while maintaining security standards.

Real estate stands at a crossroads: prioritise connectivity or risk falling behind. Future buildings shouldn’t just be sustainable, they need to be seamlessly connected, integrating technologies to enhance efficiency and tenant experience. Transitioning to neutral-host solutions represents a crucial shift, aligning environmental performance with digital resilience. Those who prioritise mobile connectivity now will benefit from improved tenant satisfaction, operational efficiency, and lower vacancy rates, securing long-term value in an increasingly digital world.