The term ‘Real Estate’ in simple term refers to ‘Property consisting of Land or Buildings’. Hence the Real Estate business in layman terms refers to “Selling or Buying of Property”. It is one of the most sought after investments after Gold. In countries like India, it is still a dream for many peoples to own a Home. Though like other businesses, Real Estate too has its ups and downs, but viewing in long term it has tremendous growth potential.
As in other fields, the Technology is slowly but steadily penetrating into Real Estate business too. And as per current trend, the two major technological domains that are propelling the growth of Real Estate sector are, Big Data and Internet of Things (IoT).
Big Data – Impact On Real Estate Sector
“Big Data” is gaining lots of popularity in recent years. It has its impact on each and every industry across the globe, like Healthcare, Education, etc.; and Real Estate is no different. So let’s investigate further on how Big Data is impacting on the Real Estate sector.
“Big Data” is simply defined as a huge amount of data, both structured and unstructured, which can be analysed to get deep insight of a business.
Today Real Estate is one of the most unorganized sectors. Further augment it with large amount of data that is being generated from this sector. Now the conventional database technologies used are not sufficed to handle and analyse such huge amount of data in effective manner. Here Big Data comes to great help which when analyzed computationally reveal actionable trends, patterns and associations. With the help of Big Data, Real Estate business can grow in leaps and bounds in coming years.
Here are some of the important aspects of Real Estate business that will greatly benefit from the implementation of Big Data.
Accurate Property Appraisals
Appraisals are one of the most important aspects of Real Estate business. Real Estate agents use it to determine the property price; home buyers and investors depend on them for good offers, and Lenders and Banks need them to determine the actual Market Price of a Property. Now, the Market Price of a Property varies greatly depending on parameters like building condition, location, area and so on. With the traditional database technologies, it often gets difficult to accurately appraise a Property. Hence, here use of ‘Big Data’ comes for big rescue. With the use of Big Data technology and related analytical tools, the Real Estate agents are able to accurately appraise a Property and set a realistic monetary value for the same. Big Data will provide users with realistic information on the basis of the actual condition of the Property, age of the Property, neighborhood locality, total area of the Property, amenities provided and so on. Thus, both agents and consumers get the most realistic price of the Property, and both get benefitted.
The most common problem faced by Real Estate Agents is the unclear and unpredictable customer behavior. Hence, it is difficult to analyse the trend of likes and dislikes of customer pertaining to a type of Property. Here too Big Data could prove to be fruitful. Using Big Data technology and related analytical tools, Real Estate Agencies can analyze trends in the age, gender, behaviors, and interests of customers related to a Property and accordingly can suggest the best suitable Properties for the customers.
The Targeted Marketing has evolved greatly in recent times. With the use of Big Data, Real Estate Agencies can deliver some great targeted marketing assets by predicting the trends, behaviors, and success factors.
Automating Financial Fitness Determination Of A Customer
Most of the Real Estate purchases strive on Bank Loans by customers. However, determining whether a buyer should be sanctioned with a Loan often is a time consuming process. It depends on lot of factors of a customer like Salary, Age, Current Debt, Residing City, Number of Dependents, Co-Applicant, Credit History, etc; and evaluating a customer on all these parameters is a lengthy process. With the use of Big Data technology, evaluating a customer to determine his or her financial fitness on the mentioned parameters can be entirely automated. It results in faster disbursal of Loans and thereby increasing the sale of the Properties; thereby increasing the growth of the Real Estate business.
Internet Of Things (IoT) – Adding Different Dimension To Real Estate Business
Apart from Big Data, one more technology that is revolutionizing the Real Estate business is the Internet of Things (IoT). Before delving further, we should first understand what is IoT. In simple terms, “IoT is the computing concept where the everyday used physical objects are connected over Internet, enabling them to send and receive data. These devices are embedded with sensors, software, network connectivity and necessary electronics to make them responsive”.
By integrating IoT into Real Estate development results into creation of ‘Smart City’, which is reshaping the entire Real Estate business. Now what makes a City Smart? The design of ‘Smart Buildings’, ‘Smart Parking’, ‘Smart Street Lighting