Change is inevitable. People repeatedly ask me, “What is going to change in real estate business in upcoming years?” I believe that the widespread escalation of artificial intelligence, big data, and predictive analysis provides more vivid information about a location’s future challenges and opportunities. Currently, there is a staggering amount of user-generated content for land records in the form of paper files, scanned PDFs, and more. According to Forbes, Big Data adoption in enterprises reached 59% in 2018 with a CAGR of 36%.
Though the telecommunication, health care, and investment industries were among the firsts to invest in alternative data, the real estate market is now becoming more transparent using big data. It helps the buyers to get the practical knowledge about the location like past market trends, nearby places, future possible changes in the area, and more, which reduces the investment risks.
What changed in real estate with big data?
Whether it is about designing an office or home that suits the requirements of the tenant, analyzing the damage to a property after a storm, or providing history and future growth of a particular location to the prospective buyer, big data is thoroughly transforming these essential tasks of real estate industry.
Big data has opened both the quantity and quality of the available data in the property business.
National Association of REALTORS® Research Group published a real estate report of 2018, in which they noted below statistics:
• 22% of buyers read newspaper ads to search a home in 1981, while in 2018, 44% of total buyers did an online search first.
• A typical buyer used the website or mobile app to look at property photos, nearby locations, and related information while searching for the properties.
• 76% of all buyers found home on their mobile devices.
Revolution in the real estate field using big data
The concept of using data brought the revolution in terms of providing real-time traffic status, proximity trackers, places for late night activities like parks, and a plethora of user reviews that abolishes the room for any confusion about the property. Big data works on facts and figures that empowers both buyer and seller for more secure deals.
Final evaluation: Big data analytics helps to remove human error while analyzing the property value by applying the latest demographic, economic, and geographical insights. The use of big data with machine learning creates an automated evaluation model as an alternative to traditional real estate appraisals to let the buyer and seller aware of their decisions.
Finer property trading: A data-driven approach helps to make better decisions for buying and selling lands & buildings. Builders can create a healthier plan for residential or industrial units. Big Data incorporation provides relief to the inexperienced sellers and buyers who are at the initial stages of property dealing.
Finance transformation: The potential investors can make better financial decisions with the help of fetched data from public and private sources. The buyer can quickly analyze the physical structure condition, the last renovation details, the reliability of the owner, and the price-worth set for the property. Moreover, the digitization reduces the paperwork, which lowers the cost and helps in saving the environment.
Can big data become the future of the real estate industry?
Along with refining the business and trade decisions, big data analytics and its related technology help to improve the daily lifestyle of the buyers by providing the right information for the properties they are interested in. However, collecting enormous data and building accurate advanced analytics algorithms is a time consuming and arduous task. Even a top-rated real estate website development company faces the challenge to capture the data value from various industry segments to create advanced analytics that establishes straightforward processes for data governance, interpretation and then helps make effective data-driven decisions.
However, the future of the real estate industry with big data is pretty promising for both sellers and buyers. It will undoubtedly lower the obstructions that come along in the way of searching and selling a property and make the finding of the right place for living or working much faster.
Expanding the geographical information system through location intelligence, using IOT (Internet of Things) to connect and exchange data, and mapping air quality through integrated air quality sensor devices are the next big things in real estate business. The integration of big data is not meant to replace human behavior truly; instead, it helps to make better decisions using realistic data points with subjective inputs from the human.