Big data is upending business models in industries from finance to tourism including the real estate sector. Big data analytics in real estate has changed the dynamics of how businesses operate both inside and outside of business environments. According to a report by Raconteur, it is estimated that 463 exabytes of data will be generated every day globally by 2025. This growing volume of market data can be an open opportunity for real estate companies to bring innovative solutions that can fundamentally change the industry. Here is how big data analytics in real estate is helping the industry get out of its worst phase.
Better assessment of the real estate market
One of the crucial areas where big data analytics can be applied in real estate is an assessment of the real estate market. Big data analytics enables everyone to carry out a relevant and accurate real estate market assessment. A proper assessment and evaluation and not only crucial for investors but also for other actors like sellers, lenders, and buyers in the market. Investors need big data analytics to know whether it is a good option for investment; sellers need it to sell their home for a reasonable price; buyers need to know how much the property really costs depending on particular factors and lenders need to be sure that they have low risks while providing a loan. Thus, with the help of big data analytics, they can come up with knowledge of home prices, rates of vacancy and rent, and market cycles.
Read more on: Digital transformation in the real estate sector
Smarter decision making for investors
Mitigating the risks and navigating through various market trends is essential for generating a profit in real estate investment. This is where big data analytics comes in. Traditionally, real estate firms have long made decisions based on a combination of intuition and traditional, retrospective data. Today, big data analytics has replaced gut decisions with metric-driven practices. The combination of Big data, Artificial Intelligence (AI), and predictive analytics help investors make decisions that are grounded in data rather than vague and untested strategies. This makes it easier for them to search for properties and zero in on the ones that have the greatest chance of being profitable.
Read more on: Impact of AR and VR in real Estate
Improves tenant selection process for landlords
For rental property investors, it is crucial to select the right tenants. Making a wrong move here will make all the difference between a profitable, long-term investment and a property that drains cash and brings in new issues every day. With the help of predictive big data analytics, you can select, screen, and find the best possible candidates for your rental property. It relies on big data and real-time insights to help you determine a renter’s likelihood of being a good tenant.
Read more on: Intelligent workplace planning solutions
Efficient targeted marketing is one of the important benefits of big data analytics in real estate. Big data analytics and other big data technologies can even help you sell a property that you’ve been struggling to market and sell for years. With the help of big data analytics, you can analyze a large volume of potential buyer data based on age, gender, financial conditions, etc, and develop a marketing strategy that better suits your target audience and your goals. It also helps real estate companies better understand what the customers want and helps them personalize and curate their marketing strategy.
Thus, big data analytics and the emerging big-data-fuelled technologies can provide new insights and approaches to how the real estate industry can move forward into the digital future. At Intone, we understand why real estate companies need to create value from process efficiencies and data-driven insights. We do this through real estate technology which includes enterprise solutions that provide for connected processes, connected data, and process automation. We provide global real estate firms with solutions involving and creating more effective client and tenant experiences through digital CRM to enterprise platforms that optimize space and asset management and deployment alternatives and decisions. Let us help you unlock the new Real Estate Power with you.