Why Big Data Has Become An Issue for Real Estate Professionals
Big Data is revolutionizing the collection and exploitation of data in the real estate sector. With Big Data, real estate professionals have a better knowledge of the market and the behavior of prospects. But Big Data does not stop there, it goes even further with predictive analysis.
Big Data at the service of real estate
Like other sectors, real estate generates a significant amount of data on an ongoing basis.
Real estate market data
The information in the real estate sector comes from different sources. With Big Data, real estate market data has become easily accessible:
- Evolution of market prices
- Average time of a real estate transaction
- Construction projects
- Number of real estate transactions…
This data can also be related to customers:
- Household composition
- Real estate investment projects
- Real estate loan
- Level of indebtedness…
Some data is also related to the environment:
- Number of shops, schools
- Number of public transportation
- Age category
- Unemployment rate…
Big Data tools
Through various tools, real estate professionals can collect and cross-reference this data to anticipate the needs of a buyer. If CRM facilitate the collection of data, data visualisation tools allow better information presentation in order to then make strategic decisions.
Websites can now estimate future market price developments. Other platforms provide the opportunity for homeowners to sell their property in one minute. Still others offer real estate professionals the list of prospects most likely to sell.
Big Data impact for real estate professionals
For real estate professionals and startups alike, Big Data is a wealth of information. The analysis of the available data not only makes it possible to refine the customer targeting, but also to anticipate their specific needs.
Big Data, a decision support tool
Big Data is not going to substitute the profession of real estate professionals, since human qualities can not be replaced by digital. On the other hand, it helps decision-making and allows them to add value to their profession.
Real estate professionals today have easy access to various data on the location and the environment, criteria determining whether or not to complete a transaction. And to make predictions, they rely on digital market data and proprietary data.
Application of Big Data in real estate
With predictive analytics, the data collected now makes it possible to anticipate the behavior of prospects and offer them offers adapted to their needs.
Concretely, Big Data can help real estate professionals find the right property for their client. By analyzing real estate projects in progress, they can identify potential buyers in this sector in advance.
Big Data in corporate real estate
Big Data has become a real issue for real estate professionals. They must take advantage of the available Big Data. They can then rely on different algorithms to optimize the management of customer data, ads, their property portfolio…
Digitalization of management processes
Real estate management companies have already understood the importance of Big Data and digital transformation. On the road towards digitalisation, they now rely on Big Data to perform the analysis, valuation and forecasting of buildings.
Towards predictive management
Big data also places the real estate business in the era of predictive management and the predictive investment models will be developed. Many real estate professionals are currently using big data-based tools to analyze market dynamics and urban developments.
With these digital tools, it is possible to synthesize the data that the investor needs to determine the ideal location of his building: the sector, the existing and future infrastructures, the services, the size of the park… These tools allow also to identify the most interesting investment opportunities by anticipating the evolution of the rental and market values of the properties on the market.
