Growing concerns over data reliability are emerging as a structural challenge for real estate funds, as asset managers report increasing difficulty in ensuring accurate, consistent and actionable information across portfolios. Many firms acknowledge that fragmented systems and inconsistent reporting standards are affecting their ability to value assets, communicate performance to investors and meet expanding regulatory requirements. The issue is becoming more acute as investment decisions hinge on more sophisticated metrics that demand high-quality inputs.
A key weakness lies in the lack of standardisation across markets and management platforms. Differences in definitions, accounting approaches and property-level reporting make it difficult to compare assets or assess portfolio-wide performance. Even managers who rate their internal data quality highly have found that mismatched formats and incomplete historical records complicate day-to-day operations. For funds operating across borders or multiple property types, these discrepancies can result in delays, inefficiencies or conflicting assessments of financial and operational health.
The implications extend well beyond internal inconvenience. Weak data management can distort property valuations and hinder risk analysis, reducing confidence for both investors and lenders. In some cases, transactions have stalled when managers concluded that the underlying information was too unreliable to support underwriting assumptions. As fundraising conditions become more competitive, the perception of poor data quality can also erode trust among prospective investors seeking transparency and rigorous oversight.
The challenge is amplified by rising expectations around sustainability. Accurate measurement of energy usage, emissions, building performance and occupancy trends is becoming essential for meeting environmental reporting standards and satisfying tenant demand. Without robust data collection and verification processes, managers face growing difficulty in substantiating sustainability claims or complying with tightening regulatory frameworks.
Some firms are responding by investing in improved systems, data cleaning initiatives and automated tools that allow more reliable capture and analysis of asset information. These efforts are beginning to differentiate managers who can offer stronger reporting accuracy and operational discipline. Yet the broader industry still faces a gap between aspiration and implementation.
Until more consistent standards and practices emerge, real estate funds will continue to operate with exposure to hidden risks that may only surface long after decisions have been made, underscoring the need for sustained improvement in data quality across the sector.
