The emergence of Big Data in the real estate industry was to leverage and achieve improved efficiency and well-balanced cost-cutting for making solid business decisions based on the organization’s needs, following the requirements imposed by the targeted audience.
What makes big data in the real estate industry so prominent? We will help you understand the ins and outs of the concept.
What is “Big data”
Big data refers to the enormous amount of organized and unorganized data sets that may be processed to provide meaning to the organization. These readings and insights can indicate any issues organizations are prone to dealing with.
Working professionals, executives, developers, and investors are the ideal target audience opting for Big data. It aids them in better assessments of the upcoming risks and identifying the range of other available prospects in the market.
- According to a Zippia study, all US housing value is assessed at $43.4 trillion.
- The number of realtors in the US will reach 1,578,053 by 2023.
- The National Association of Realtors estimates approximately 106,548 active real estate brokerage organizations in the US.
Only real estate industry experts can untangle the data of the particular geography for marketing purposes for various requirements, such as investing ideas and users’ desires and necessities. The exceptional factor that sets big data apart from traditional practices is its accuracy in avoiding risk mitigation, fair points of the prices of properties, and more.
According to reports and demographic profiles, the real estate industry functions accurately; billions of untouched data are yet to get under the filtering and cleansing radar, which can be extracted and capitalized.
- A KPMG survey found that 97% of the participants believe technology advancements will have a ripple effect on their business’s success.
- According to 30% of participants, automation will significantly impact the real estate market in the short term. In comparison, 27% suggested combining data analytics and big data will have the most significant impact.
There are numerous sources for extracting accurate real estate data that are accessible. They play a vital role in categorizing various marketing strategies and other developments in the real estate industry. Let’s get straight into it.
Here’s a list of the top 5 public real estate data sources that every real estate business group must have their hands on:
|BRB Publications: Public Records||Statistics, settlements, and counties||Free|
|US EPA Environmental Information||The mapping process, auction info, ecological||Paid|
|Data.gov||Stats, statistics, and technology||Free|
|Associated General Contractors of America: Economic Data||Construction of the economics||Free|
Application of Big Data in the Real Estate Industry & Future Forecast and Trends:
The advent of big data has caused the real estate industry to surge and rise above the other working sectors in the economy. Various working businesses are utilizing big data, but without a doubt, the real estate sector leverages big data most heavily.
According to market research company Wikibon, the global big data market is projected to continue to develop at a compound annual growth rate (CAGR) of 11.4% per year, with significant data monetization expected to surpass a $103 billion sector by 2027.
Benefits of Implementing Big Data in the Real Estate Industry
The plethora of dynamic potential that Big data draws into real estate is impressive. Let us learn further about the significant benefits that working professionals and organizations can extract using Big Data to outperform their competitors in the real estate industry.
1. Robust Valuation of Properties
Identifying the suitable rate before quoting a property into the market is vital. Experts can now analyze property rates more precisely based on current developments and other analytics with the assistance of big data and artificial intelligence. Dependence on multiple data sources can lead to discrepancies; big data works to eliminate errors.
2. Upgraded Marketing Strategy
Real estate agents can accumulate business and property value insights to the raised demands of users during their property hunting stage. Sheer credits to Big data for having narrowed the gap as property agents can effortlessly pick on the regions and targets to approach the user base accordingly. A few factors to consider before using big data are area, age, interest, career goals, etc.
3. Transformation of Property Development
Stakeholders are examining data collections to find business opportunities with tremendous potential for profitability. In this regard, they can locate regions designated for infrastructure construction by looking through official data records. Real estate investors can assess property vacancy by analyzing the historical occupancy rate following the anticipated future occupancy figures.
4. Efficiency in Operating the Business Flow
The inception of big data has tremendously helped in upgrading the data entry process. Real estate agents can thrive better in areas like enhancing customer interactions and exchanging information. Since it leaves behind additional time consumed for doing the data entries manually, it can save plenty of additional time for supervising other business tasks.
Challenges Faced Due to Big Data in the Real Estate Industry & Solutions
The modern advancement of the real estate industry has witnessed the inclusion of data and analytics. The existence of big data shows both its developing nature and destructive face. We’ll walk you through the consequences that big data organizations are experiencing.
1. Ineffective Data Quality and Integration:
Obtaining incongruent data sets can drastically decrease data quality and deplete its value even before the organization can utilize it due to the predominant error percentage.
Solution: The organization can use data cleansing services and implement tools like Integrate.io, OpenRefine, etc, to fetch the data insights and secure the hygiene of the data sets
2. Data Security and Confidentiality
The organization must incorporate a robust security system to safeguard sensitive data from slipping out, which requires careful measures.
Solution: The involvement of security tools, including encryption of access controls, regular sharp supervision, and compliance with data regulation, can secure the discretion of data for the organization.
3. Sustainability of Data and Business Scalability
The decision-makers must understand the data’s complexity and size before operating with it. Larger big data sets will require an adequate infrastructure for their potency, especially in the real estate sector.
Solution: Including cloud storage such as Amazon Cloud, Google Cloud, and more can eradicate and solidify significant data settlement by providing ample space for its expansion for real estate business professionals.
4. Prowess and Skillfulness
Every real estate venture must track and capitalize on the data sets, which costs a wholesome amount, that goes unused by incompetent professionals.
Solution: Advanced training of existing employees can help them upskill themselves, and the organization can invest in experienced professionals who can carry out the task efficiently.
5. Predictive Analysis
Experts in the corporate hierarchy commit blunders while forecasting the accuracy of the data due to the overall complexity of various algorithms.
Solution: Involvement of experienced individuals in the team to solve complex tasks by introducing advanced data analytics to discover discrepancies and solutions.
Future Trends of Big Data in the Real Estate Industry
Numerous factors are influential in molding real estate companies and professionals, from changing consumer needs to the impact of data in the industry. We’ll find out the upcoming significant trends to watch out for:
1. Merging AI with Analytics
The number of unrealized capabilities the AI packs, when infused with analytics, can be a game changer. This can assist in decision-making and pinpoint the property evaluation and future real estate investment for organizations and giant corporations.
2. Future Predictive Models
The working experts from the real estate industry can replicate similar reports from the previously used data to envisage the future of growth and assist the stakeholders in making impactful decisions. This would have minimal risk of any error due to its laser-sharp accuracy.
3. Consequential Risk Assessment
The company can use ingenious insights from well-structured data to improve risk assessment with data-driving tools that eliminate financing underwriting the business property market value.
Big data is predominant in constituting effective strategies for streamlined operations for real estate organizations. The involvement of big data and analytics has secured a position as a consultant to the top-tier decision makers of the organizations.
It thoroughly apprehends the challenges while providing a canonical solution to overcome the improvisation of various costing expenses. Considering its scope and overall budget, every organization must utilize big data and outplay their competitors regarding better reliability, workflow, and being more resourceful in the real estate industry by serving their client base.