Advancements in technology continue to reshape the real estate sector, and big data heavily influence these changes.
According to the National Association of Realtors, 51% of people found their property on the internet in 2020. This figure is surely set to rise as tech-savvy millennials now account for a significant proportion of the modern market.
With so much real estate activity now occurring online, there is access to a colossal amount of valuable data. But exactly how is this data reshaping the real estate industry as we know it?
Leveraging data for space and tenant needs
Modern Commercial Real Estate (CRE) tech goes far beyond researched and verified property spec reports. CRE professionals now have access to a host of resources and tools, thanks to tech advancements and commercial data research.
CommercialEdge, for example, is a CRE platform backed by over a decade of data research. This platform enables CRE professionals to increase their reach significantly, boost lead generations, perform highly accurate canvassing and efficiently match tenants with their specific space needs.
These tools can be utilized by property brokers, tenant representatives, and owners - anyone looking for a comprehensive overview of agile marketing, lead and deal pipelines, prospecting tools, and cutting-edge market insights.
Advancing sustainability and energy conservation
Data collection and analytics can also provide landlords and tenants with vital information to assist them in conserving energy and making their properties more sustainable. Property managers leverage this data to optimally regulate their heating and air systems to reduce emissions and conserve energy.
Emma Williams of Treehaus.com, says, "Leveraging energy data from both the whole building and individual tenant levels can greatly assist in making informed decisions when it comes to creating energy-efficient and sustainable properties. These data applications benefit both tenants and landlords in money saved while doing right by the environment."
Property deal efficiency
When it comes to data shaping the real estate industry, the efficiency and accuracy with which property deals are being made is at the forefront. Accurate, predictive analytics results allow for more informed property investment decisions.
For a start, comprehensive data from multiple sources measuring property values leads to greater consistency in agreeable valuations between lenders, appraisers, and real estate brokers. In addition, data sets can be fed into AI models and predictive algorithms, enabling them to base property values on current trends.
Additionally, investors and lenders can benefit from greater clarity in making informed decisions, as appraisers are able to create more detailed property visualizations. Leveraging accurate and comprehensive data, appraisers can use 3D illustrations and enhanced visual maps to aid investment decisions.
Heightened efficiency with online transactions
The availability of digitized data coupled with the advancements in online software results in smoother, more efficient property transactions.
Darren Robertson of Northern Virginia Home Pro says, "The pandemic significantly accelerated the real estate sectors' shift towards primarily online transactions, and this has positively affected the efficiency with which we can now complete property deals. Completing much of the paperwork online not only speeds up the process but reduces costs, too. In addition, this frees real estate professionals up to focus more time on their client's needs."
More information to support buyer decisions
Buyers also benefit from greater access to pertinent data, assisting them in making more informed choices when it comes to where they will live or invest.
Accessible online data can include critical area information, such as property valuations, crime rates, school zones, and historical data. It is also easier than ever to find out far more about a property of interest, such as:
- Date of construction
- Square footage of the property
- Location information - including crime rates and school zones, data can include information on local facilities, such as shops and other points of interest, and transport links
- Comparable property information - how similar homes in the area have performed in the past as well as currently, when it comes to development success and sales prices
- Historical data - how the property in question has performed in the past, regarding rental and sales prices, planning and developments
- Boundary and ownership information - where are the property's boundaries, and who owns any relevant land parcels
- Zoning laws - whether there are any legal restrictions for any extensions or developments in the future and the implications these may pose to the success of an investment
Reduced overhead costs for landlords
Some CRE investors own multiple properties that attract higher overhead costs, as they need staff to assist in management and maintenance.
However, with modern data analytic tools, landlords can access critical information regarding their properties in real-time and respond more efficiently than ever. Information relating to ongoing maintenance or repair needs, vacancy rates, and property systems can help free up time, resulting in reduced staffing costs and higher productivity.
Industry transparency
As real estate buyers and sellers can access all relevant information online, the application of data and analytics helps to ensure that the real estate sector becomes more transparent than ever. This heightened transparency helps to protect buyers from fraudulent brokers and agents and serves to create more consistency regarding property values.
Evening the playing field
Predictive analytics in real estate is enabling beginner investors to compete with professional investors in the market. Access to big data provides valuable insights to investors at every level. This data access supports informed investment decisions in several ways, including identifying sound investment properties, and accurately calculating likely returns on investment (ROI).
Data can also assist investors in determining which sites are best to develop within a community. Leveraging data enables investors to identify which areas have been historically successful and which are more likely to provide a more secure long-term investment.
Such data can also help investors research and determine which property features are most in-demand to ensure that their developments appeal to a greater percentage of the market.
Final thoughts
Data has been transforming the real estate industry for some time now and will continue to shape the sector's future and how it functions.
For residential and commercial buyers alike, real estate data provides critical information and market insights that can significantly impact investment decisions and streamline processes.
* This is a contributed article and this content does not necessarily represent the views of techtimes.com
