The fourth industrial revolution is upon us, and data and technology are what’s driving it. Innovation continues to be the catalyst for change in all industries in the world of business. Real estate is no exception.
The market and its drivers are more mobile, and more connected than ever before. Businesses can operate anywhere now. Use of various technologies, some of which are real estate exclusive, some are not; have been heavily disrupting the real estate industry recently. These are some of the technologies that revitalized the real estate scene in 2017:
One of the most impactful technology breakthrough we have seen in 2017 was the monumental rise of Artificial Intelligence (AI). AI will shake up construction, taking up mundane tasks that are labour intensive, especially with regard to design. Use of AI in Building Information Modelling will bring a paradigm shift to the industry as it will used to design bridges, tunnels and much more. Machine-learning will also allow design tools to provide rapid feedback on how to maximise the value of constructs in terms of the configuration.
There is now a demand for supply to be cheaper as the global need for constructing new infrastructure increases. Use of AI will ensure reduced prices, better safety, and more accurate and rapid assembly worldwide.
The VR revolution is just beginning; we are still lagging behind on application. However, tech savvy agents have already found creative scopes to put the technology to use. The biggest promise virtual reality offers prospective homeowners is a first-hand tour of their potential homes, even if they are living hundreds of miles away.
Not just with new projects and touring, VRs can also be used in renovations as well. It can superimpose improvements (such as new paint or new décor), and investors can make a more informed decisions based on an immersive experience. VR is truly the new addition to reality as more developers and agents are picking up on this cutting-edge technology every day.
Internet of Things
Whatever the business is, if you aren’t collecting, storing, using, and learning from data, then you really are running old-school operations. Real estate faces this reality as the effective use of data, analytics and Internet of Things (IoT) becomes a competitive advantage. Internet of Things (IoT), also known as the Physical Web, is the connectivity of various smart devices we use. Starting from smart phones, we now also have smart homes, smart cars, and smart watches. From fire alarms to fridges, the smart devices are here and multiplying (read taking over) fast. Using IoT in a structure is like giving it life. With IoT devices, a building can collect, store, and analyse data. With the help of analytics, and AI, the data can be turned into useful information and make everyone’s lives convenient; performance and productivity increases due to a tailored experience. Imagine if you pulled into your assigned parking space and the building knew you were there. Your office computer and lights turn on, climate control is set to the way you like it, and your coffeemaker brews you your regular cuppa. These things are all possible with connected devices.
Artificial Intelligence, Internet of Things, Big Data – these are all connected. As more data are collected now through various mediums, these data are properly being analysed to draw relevant conclusions. Realtors, investors, and home buyers alike are making smarter investments by using data analysis to accurately predict risk and market trends. One of the current applications of Big Data is appraisals. Appraisals are routine tasks for real estate agencies, that involves a visit of the qualified personnel to the property, to discern the value of the asset by considering many factors. The appraisal can be used in the market, by banks or insurance companies, or other financial institutions. Due to rapid expansions of cities and overall urbanization, appraisals have become a tiresome, complicated process. With the help of Big Data, appraisals can be become a less complex affair. Big Data analysis can reveal the worth of neighbouring properties in a particular area which results in accurate estimates in shorter time periods.
Social Data and Communication
Social networks (such as Facebook) constantly collect data from users, which are then used to tailor marketing and services for each individual. The same data can also be a major tool to your real estate business. Facebook’s huge, diverse user base makes it an excellent place to advertise. Agents are scrambling more than ever to claim further space on social networks, allowing them to leverage some of that valuable consumer data. The rise of other social sites like Snapchat means more ways of communicating with clients for the agents, and you.