The concept of Big Data is being used in almost all sectors and industries at a large scale and real estate industry is not an exception. A massive or huge amount of data is present all over the internet in the form of paper, PDFs, or digital contents. We can say that historical data is present and available all over the internet for analysis and various other purposes. Every sector is trying to utilize the same data to extract some meaningful information from the same. Industries are using a large amount of information that is being processed through IoT.
Big Data technologies are being used by almost every industry and its adoption is increasing day by day. This article is to discuss the effect of Big Data on the real estate sector or to discuss how Big Data is affecting the future of the real estate industry?
A Quick Introduction to Big Data
Big Data can be defined as the repository that stores a huge amount of data for a long time or a number of years. We can say that data that has been generated and piled over the last couple of years and is still growing at breakneck speed to be stored or processed through various Big Data technologies. It is being used for behaviour analysis, predictive analysis, or to discover any valuable insights too. Application area of Big Data is quite large and may include medical science, finance, educational, health, and journalism sectors etc.
The Big Data Revolution in Real Estate
Research and surveys prove that in the last few years the number of online home buyers has been increased by 51%. In other words, we can say that the number of online home buyers has been increased at rapid speed during the last few years.
The Internet has made the search for office, home, or amazing real estate property far easier with the adoption of big data by websites or industries. With the help of big data, much other relative information like real-time traffic, proximity trackers, walk scores, information of late-night activities, parks, outdoor activities, a plethora of reviews, and restaurants also can be known easily. Even without confusion you can get the details and know about the area. Buyers can know plenty of additional details about their favourite destinations through websites and compare the details before buying them.
Both renters and realtors or brokers can easily find a platform through which they can find and enlist their properties. Through predictive analysis, brokers can understand the cost and type of properties and can know how to close the deal. For brokers, their customers are just a click away from them and brokers can know how to close the deal? Big data is providing a new and well-calculated market for their properties.
How Big Data has changed the Real-Estate Market?
We know that big data is empowering real estate business but this is not a single benefit that is being offered by the Big Data, but it has also secured the market for both buyers and sellers as per the facts and figures collected by the market. Following are a few of the major benefits that are offered by big data to real estate market:
Accurate Property Evaluation
Big data technology and concepts are already being utilized by Real Estate market along with machine learning and are used to automate evaluation models. Traditional real estate appraisals error rate has been reduced up to only 9%. Current appraisals depend mostly on prior evaluation or the property selling price of any nearby property. This method may ignore many other dynamic factors like improvements or any upcoming amenity to the property that can boost its rate. Property rate can become justified and rate just through this technique of Big Data one can get the accurate market details and property value.
Through big data analytics latest demographic, economic and geographic details can be accessed and used. Human errors can be reduced up to large extent, though any human can never be entirely replaced by a machine as algorithms that are used in Big Data may lose some subjective input and may use some decision making information.
Intelligent and Smart Buying and Selling Habits
With the help of proper data backup, better decisions can be taken and buyer and seller can plan and implement their buying plans. Properly guided and well-informed environment can help the builders in planning their property plans and improving residential health by supporting property efficiency and energy and by reducing any negative sociological impact. In this analysis self-sustaining industrial and residential units are created. Big data has reduced the role of half-informed brokers and disappointed sellers and buyers who have any unrealistic and unmatched expectation. In other words, we can say that due to the presence of proper and well-organized information and data the seller and buyer have become smarter and can buy and sell their properties in the right manner.
Better and Informed Financial decisions
Not only the buyer and seller even the investors like banks can also avail the correct and complete information and make their financial decisions properly in a smarter way. Like the banks can access the deep information and make their smart decisions and know that whether any short sale is really worth for buyer or seller or not. Any frauds can be detected and identified to avoid the wrong investment. Paper use can be minimized and errors can be reduced a lot.
The future of big data in real estate
Big data is not only improving and refining the trade, but even it is also continuously improving the quality of living and lifestyle for their property. Now geographic information system and information updated by government agencies can be captured and displayed for any location. Right now, it is being used by drivers for navigation. Through big data and relevant information, house hunting become helpful and location scouting can also become easier.
Even IoT equipment like sensors enabled trackers can help in tracking the temperature of any building either from inside or from outside to know its condition. Such systems make the system smarter and reduce wait time and minimize the expense as well. Air quality can also be measured through sensors to know the environment and make smarter decisions before buying the property.
Big data helps in getting familiar with the location and accessing all relevant and required information of any place. Today, buyer and seller have been equipped with all relevant information and become able to take smarter and quick decisions before investing in any property. Big data has made many things channelized and a wider range of technological equipment help the brokers and buyers in making their decisions better and more informed than earlier.