Harnessing the power of big data is a game-changer in many industries. While some industries have a long history of harnessing big data, real estate has only started. In just a short period, big data has begun to revolutionize commercial real estate.
Big data consists of extremely large data sets that are analyzed computationally to reveal patterns, trends, and associations. Here is how big data is impacting commercial real estate.
First, big data has changed how appraisals are done. Conventional real estate evaluation methods were prone to a lot of errors. Moreover, these traditional appraisal methods were slow. Big data has introduced the use of automated evaluation models in property evaluation. Big data and analytics, accuracy, and objectivity have increased in property evaluations. Another milestone of big data is that of enabling developers to meet the needs of customers.
Big data allows developers to know the tastes of most of their customers. Before any construction, one is sure about the needs of target buyers. Besides, bid data allows a developer to understand customer buying standards and patterns. Big data has thus become an essential planning tool for any real estate developer. Big data also decreases the chance of taking losses as a developer, especially when you can better understand your buyers.
Owning a commercial property is a dream come true for most people. No one would ever wish to make a mistake while buying property. Before the emergence of big data as a strategy, customers would purchase a property through trial and error. You faced the risk of purchasing the wrong property. Big data has helped to mitigate that risk. Courtesy of big data analytics, there is loads of information about the properties being sold. It has brought transparent data democratization in the real estate sector.
Fraud in the real estate market has reduced. The vice of property sellers fooling buyers is no longer tenable. Big data has changed the real estate sector and other industries that work with real estate. An example is the banking sector. Before, lending to real estate sector players was a risk because of the wrong assessment. Big data allows lenders to assess the credibility of real estate borrowers properly. Their risk is minimized. There are notable Proptech companies behind the brains of big data. These include CoreLogic, Hipercept, and Reonomy. Their input has brought tremendous transformation into the real estate market.
Big data is truly revolutionizing commercial real estate. Have you implemented any of these tactics within your company?