Technology has become part and parcel of business in this digital era, especially in the real estate industry. Property owners now rely on commercial real estate technology to handle various activities from the management of home services, purchase, renting, or selling. According to research conducted as of August 2021, some of the leading technologies commercial real estate executives plan to capitalize on this year include data storage, data analytics, and cloud computing.
As real estate technology evolves, the industry is likely set for unmatched growth and revolution soon. Therefore, as a real estate investor, you’d want to harness the power of technology to improve efficiency, gain a competitive advantage, and provide the most satisfactory consumer experience.
With that in mind, here are real estate technology trends you’d want to incorporate into your business:
1. Big data analytics
Big data is high-velocity datasets that require advanced analytic approaches like the application of algorithms to unveil trends, provide enhanced insight, and facilitate decision-making. This heavy lifting of information is expected in busy industries like real estate. That’s why there’s high interdependency between real estate and technology tools like big data analytics.
That said, below are different ways data analytics can revamp your property dealings:
- Facilitates effective property pricing: You can make accurate predictions regarding future costs through detailed historical price analysis. This way, you can plan how to put forward your offers and reduce the high risks associated with price fluctuations.
- Better marketing of a property: Data analytics mainly play a necessary part in personalized marketing campaigns. For instance, by analyzing website entry points or customer browsing habits, you can gather consumers’ identities, their tastes, and where they’re located. This way, you can separate your audience into segments and target each group or individual client with personal content.
- Provides market insight: Through detailed analysis of industry performance metrics, property trends, and competitor moves, real estate businesses can make informed business decisions. For example, it becomes easy to determine what kind of property to construct, whom to invest with, or how to minimize losses.
2. Cloud computing
Because of the current state of the world, many businesses worldwide, real estate included, were prompted to rely on technology to up their game. Real estate investors had to switch to the cloud to connect with potential clients and ensure they could access property information online. After realizing the many opportunities they can find in the cloud, many businesses have it included in their long-term plans. Essentially, it’s the one technology commercial real estate companies have harnessed to improve efficiency in the following ways:
- Ensure optimal data security: Real estate investors deal with personal client information like social security numbers that require top-level security. Luckily, with high-level authentication and encryption, the cloud is a safe space to store all your data assets. That includes purchase agreements, legal documents, sales contracts, and loan agreements.
- Increase customer engagement: You can instantly share data with your clients, respond to their concerns, and even close deals from anywhere.
- Ensure collaboration between team members: Workers can access information-fueled guidelines on dealing with various property dynamics, thus completing their duties timely and efficiently.
- Reduce operational costs: By storing all documents in a single server, you can eliminate the need to employ professionals to manage hardware memory or pay for upgrades.
3. Task management software
Like other businesses, many real estate companies have invested heavily in software programs to manage dozens of back-office processes. This technology in commercial real estate has streamlined many processes, including:
- Initiation and completion of transactions online
- Creation of projects for each client and assignment to team members
- Tracking staff time on real estate projects such as marketing
- Creation of a self-service client portal where customers can view their statements, and even compute their rents, or tax deductions
- Financial management with the use of efficient reporting tools
- Keeping track of essential contract obligations such as property agreements to avoid penalties
4. The Internet of Things (IoT)
Real estate technology companies have gone the extra mile to provide homeowners with a game changer in the industry with the invention of smart home technology. This includes building management systems like smart gadgets that can automate daily household chores. Below are some of the ways IoT has improved property management:
- Ensured emergency preparedness: Smart sensors enable homeowners to monitor house conditions and fire hazards. They can also get warnings on potential weather-related risks like hurricanes.
- Provision of optimal security: Cameras and motion detectors can sense and alert owners of unusual activities within the premises like forced access.
- Effective HVAC system functioning: For instance, smart heating, ventilation, and air conditioning (HVAC) systems can regulate electricity usage, like turning off unused lights and ensuring energy conservation. In addition, these solutions facilitate automatic temperature regulation in living spaces.
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In today’s world, technology and real estate have become inseparable. Real estate businesses are now heavily dependent on big data analytics, cloud computing, IoT, and task management tools to transform their operations. Therefore, as a real estate investor, you’d also want to invest in smart tech to improve performance and set yourself up for success.
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- Statista, “Share of commercial real estate executives planning a large investment in different technologies worldwide in 2022,” Statista, n.d., https://www.statista.com/statistics/1291081/most-popular-technologies-for-investment-cre-globally/
- BizzmanWeb -Singapore “How Real Estate Industry Benefit From Data Analytics,” Medium, April 30, 2020, https://medium.com/@bizzmanwebsg/how-real-estate-industry-benefit-from-data-analytics-46dbd9fff42d
- Evgeniy Altynpara “Why Migrate To The Cloud: The Basics, Benefits And Real-Life Examples,” Forbes, March 12, 2021, https://www.forbes.com/sites/forbestechcouncil/2021/03/12/why-migrate-to-the-cloud-the-basics-benefits-and-real-life-examples/?sh=6051b5595e27
- Verve Systems “How IoT Will Transform The Real Estate Industry,” Medium, September 17, 2019, https://vervesys.medium.com/how-iot-will-transform-the-real-estate-industry-9a5b7a5eb05b