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The large amounts of real estate data at their disposal should be leveraged to create maximum impact, just like how Wall Street uses the data available to model algorithmic trading. By using data analytics, realtors and investors can stay up to date on vital statistics in real-time, enabling them to stay ahead of the curve on the rapidly changing market of commercial real estate
FREMONT, CA: Emerging technologies are always in demand as the world prepares to leap towards industry 4.0. Technologies such as big data and analytics have become the buzz word in pretty much all industries, and it is no surprise that the real estate industry is also looking to adopt these technologies. In fact, the real estate sector has already begun reaping the benefits of these advancements. Big data and data-driven technologies generate enormous amounts of data, and this can be leveraged by the real estate industry to go even further in developing the sector at both macro and micro levels.
Analytics is one of the most basic and, at the same time, a powerful tool at the disposal of the real estate industry. Its benefits can be extended to both customers and realtors as it allows for advanced property evaluation spread across a vast spectrum of parameters from expected appreciation and depreciation rates to crime statistics, accessibility, and other factors. This enables real estate companies to determine values more accurately and mitigate risk while also increasing customer engagement. As a result, customers gain access to highly relevant information regarding potential purchases.
The large amounts of real estate data at their disposal should be leveraged to create maximum impact, just like how Wall Street uses the data available to model algorithmic trading. By using data analytics, realtors and investors can stay up to date on vital statistics in real-time, enabling them to stay ahead of the curve on the rapidly changing market of commercial real estate. Accurate and timely market data can also have a significant impact on a company’s ability to turn a profit on a piece of real estate and empowers potential home buyers by providing a comprehensive view of the market even as it changes minute to minute.
Artificial Intelligence (AI) programs are already making use of these enormous pools of real estate data to enhance customer experience through personalization and predictive home evaluation over time. Furthermore, AI can help predict which locations will be most beneficial for developers to invest in, optimizing market-level profitability and revenue and revenue while helping to identify optimized spatial layouts of new developments.
Despite being relatively slow in hopping on to the big data train, the real estate industry took almost no time to notice the massive value that data brings to the table. Data enables investors, developers, and potential buyers to envision detailed and pertinent information about real estate without ever having to see it in person. Micro-level data such as land valuation, crime statistics, accessibility, and traffic flow are incredibly important when looking at real estate development and investing. This is coming into play in a big way.
Data comes in various formats and can often be tempting to store classic visual data for the more esoteric sets of data pertaining to a piece of real estate. However, visual data is at the forefront of one of the most innovative and exciting data-driven technologies being used in the real estate industry today. Visual data can be implemented into virtual reality technology by realtors, to give prospective buyers a tour of the property, an in-depth look at the dimensions of any given building, something which traditional static photograph clearly lacked.
Once again, Virtual Reality is yet another technology that benefits both buyers and sellers in the real estate sector. It helps realtors expand their market rapidly as it does not involve setting up of actual appointments to show a home. Instead, they can just show the potential buyers a stimulation of the house to more than one client simultaneously. To take this a notch further, virtual reality can turn a cold and empty home into a well furnished and decorated ready to move in living space. Its ability to instantly move around a piece of furniture or change the paint scheme can appeal to large crowds, and also turn potential customers into customers.
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