A couple of quintillion of bytes are generated every day. Data is all around you. And every day we perceive new data and our brain processes it constantly. But we cannot constantly work with huge data volumes efficiently, that is where special algorithms for processing Big Data come in. Bis Data contributes to many fields of activity, and today it is rapidly being integrated into the real estate sector.
Why is Big Data changing real estate sector?
Nowadays IT technologies drastically change the structure of the commercial real estate market. Innovative technologies change almost everything in the real estate sector, starting from the business model building, human resources management or optimization of expenditures.
Big Data is one of the technologies that gained its popularity in the real estate markets of many countries. The goal of Big Data technology is to automate the analysis of huge amounts of data from multiple information sources. And human capabilities will not be enough to process all this data. Therefore, companies will be able to optimize financial costs, time, and achieve a more accurate result that won’t be affected by a human factor.
Big Data works with machine learning to solve main business tasks. Huge data massive is analyzed according to set algorithm, and artificial intelligence provides people with the solution of a specific task. The most widespread example – credit appraisal of a borrower in banking or microfinance sector. Many banks already make their decisions on loan issuance on the basis of the verdict from an automated system.
The future of Big Data in real estate
Big Data potential usage on real estate market is multipurpose. If it comes to an end consumer, then real estate Big Data can help consumers appraise objectively various real estate objects by multiple parameters. Modern real estate databases offer rather limited information volume about different objects interesting for you.
- For example, real estate predictive analytics with Big Data technology helps to estimate the time you need to spend to go to the specified object in rush hour, how many schools and kindergartens are located in this area, and other related issues;
- Thus, Big Data makes it possible for an individual to make a quick decision whether he/she needs to waste their time on this object or it is better to choose something else.
As for business, Big Data potential can also be titanic. Technology can be highly efficient for marketing fields starting from personalized offers to end consumer to the determination of real estate object type with all tiny properties that can be built in that or another location.
So what are Big Data benefits that make it possible both for real estate agents and consumers improve their interaction with this field? It is time to find out.
First, we should clarify that commercial real estate companies start using Big Data since it helps them reduce financial risks. How is it implemented? Using predictive analytics in real estate, companies can analyze the total condition of the building, its age, how solid it is, all reconstructions that were made before, and the information about the current owner. Based on all the above, real estate companies can make a correct estimation of the real property and provide customers with detailed recommendations and information. Moreover, real estate agents can quickly find appropriate variants for customers that meet their demands and preferences.
Improved customers’ engagement.
Data-driven analysis can come to the rescue. Real estate agents often come across ambiguous and unclear customers’ behavior which cannot explain why they don’t like this house or why they don’t want to buy it. That is where analysis using Big Data can help solve this issue once and for all. Predictive analytics for real estate is very important. Special tools developed by software development companies like Cleveroad can analyze the needs of consumers and improve their engagement.
Perhaps, undetermined requirements of customers may even come to naught eventually and agents/companies will offer customers what those want to get.
Detailed and precise appraisals
When people sell or buy a house/apartment, they want to know its real price. And the process of the correct estimation is rather difficult and long since it requires full information about the building condition, location, area and so on. So prices can be changed drastically depending on many factors. Big Data is an option, as always. Using special analytical tools, real estate agents are able to perform accurate appraisal and set a real value for the indicated building. Big Data will provide users with actual information on the basis of the neighborhood, area, total conditions of buildings and so on. Thus, agents and consumers can get the most realistic price, and both parties benefit. Using Big Data, the real estate sector can be completely modified.