Technology disruption has changed the social, economic, and environmental aspects of every industry, but real estate had a slow growth path. From the last few years, the usage of Big Data In Real Estate has changed the dynamics of how businesses operate both inside and outside of business environments. The population all around the world is expected to reach 9 billion by 2050. The overcrowding of population, due to reasons like migration, globalization, increasing urban population, etc have led to a scarcity of land and are the major forces boosting growth in the real estate industry. In the last five years, the industry has experienced a 33% hike in countries like China and India.
With the growth and evolving technologies, the volume of market data and the list of competitors are simultaneously increasing in the field of real estate. For being future untended and lead their competitors, the real estate business needs to answer the key pain points-
– How to leverage the application of technologies to address future consumer expectation insights?
– And deciding the right technology tool to address particular consumers’ needs, sentiment, and wants?
What is market data In Real Estate?
The market data speaks about the property value based on the market conditions like amenities, selling price in a particular geographic region, the demand and list of properties sold from a group of properties for sale, geographic conditions, increase and downfall in population, etc. The market data plays a vital role in sales comparison and closure. With Data explosion and digital transformation, the real-time accessibility of the data has been increased.
Why Real Estate should consider Big Data?
Harnessing of digital data after the digital revolution has been complexed than before. The traditional statistical tools in real estate had limitations in solving these datasets. By leveraging big data tools integrated with other technologies, the business can collect, summarize, aggregate, and analyze the datasets to perform various functionalities of the business. In the world of real estate, data analysis plays a vital role in picking up the right deal, with minimum risk. The large volumes of historical and digital data collected by real estate owners and their users can be leveraged by big data tools, integrated with advanced AI technologies, to provide advantages like-
1. Big data helps real estate in faster workflow by advising appropriate and profitable projects/properties for their customers.
2. The risk of choosing the wrong property is less.
3. Using predictive and sentiment analysis, the customized and filtered properties for the individual customer provides a competitive edge.
4. The price fluctuations are more common in real estate due to which it has higher risks than other industries. Big data can provide risk mitigation by predicting future prices.
5. Based on data insights, marketing strategies can be improved for better customer reach and engagement.
6. By analyzing big data insights on real-time regional price analysis and forecasted future price fluctuations, the real estate companies can collaborate and offer Personalized insurance cover for every customer in real-time by quoting future value.
Big Data usecases in Real Estate
Data visualization and representation
Data plays a vital role in every industry. Evolving technologies unfolding new ways of data representation and visualization. In today’s online world every business uses a web-based or mobile-based application of customer interactive enterprise services. For better communication and client engagement, the data is classified and integrated into a set of customized filters. In real estate, 90% of decisions are made based on the data. The presentation of data decides the fate of an enterprise, which may provide a business lead or it may lead to closure. The real-time information should be represented in an authentic and sophisticated manner, for better client understanding and customer engagements. The companies like Trulia, Airbnb, Zillo are leveraging AI-enabled big data analytical tools for more enhanced customer engagements to make a profitable business.
Advanced filters for property categorization
AI-enabled Advanced filters provide real-time data access to consumers through an internet-enabled device. The advanced search filters offer information beyond the property details, which include- geographical dynamics like- live location tracking, 3D property visualization, property value, nearby restaurants, public places, entertainment & theme parks, etc. lifestyle-related information, the balance of social and economic life in that geography, society amenities, etc. By understanding and addressing customer needs, the real estate business can increase customer-centricity and higher customer engagement.
A smart home can be considered as a property/ living space automated to coordinate every functionality in the house through internet-enabled devices, which provide access to both text and voice commands of humans. How are smart homes an important factor in revolutionizing the real estate sector? With increasing tech applications and their accessibility made people interpretable on technology for a better and smart lifestyle. Smart homes integrated with IoT automation offer every command at the owner’s fingertips and it is attracting the younger generation. The house automation has more future scope and driving the tech growth in real estate from one end.
The primary goal of any business/ industry is to meet their return on investments in less time so that they can optimize their revenue in the long term. With big-data enabled analytical tools, integrated with advanced technologies, provide overall growth in all functionalities of real estate, which can drive better revenue results for a company. By minimizing the risk in investments, the future value of the business can be increased.
Future digital intelligence will alter the business strategies and practices related to real estate, by a shift in their responsibility, risk, and adequately of their services/customers. The significance of big data has piqued the interest of international real estate owners, on how a firm operates and coordinates with its customers, to meet the above-mentioned changes. Many real estate businesses are implementing big data to their competitors in the revolution of Industry 4.0. Real estate is evolving from building and system management to an integrated manager of systems and space. And the big data analytical tools integration would be the first step towards the new digital era.