Real estate must embrace new technology
Connected devices, smart monitoring systems and advances in data analysis are transforming the real estate sector, according to industry experts.
“Smart property professionals are waking up to the fact that in such an uncertain economic environment, high-quality, high-volume data insights are a must to inform business decisions at all levels,” says property data analyst Gavriel Merkado. He argues that investors need a ‘data roadmap’ to navigate current and future opportunities and threats.
“Data around house prices, rental markets, demographics and more can be brought together into one single data analysis system,” says Merkado. “This type of data insight not only cuts property market analysis time to a fraction of what it once was, but also allows investors and developers to better understand where, when and how to invest, from determining the best value-add features, to tips for portfolio diversification and exploiting emerging market segments.”
There is an occasional reluctance by some in the profession to embrace new technology, trusting that – since real estate is by its nature fixed in one geographical place – technology will have a minimal impact.
This is certainly no longer true (if it ever was). The rise of new business models such as Airbnb, new online investment vehicles and the internet of things (IoT) are just some of the elements transforming the sector. Investors and developers are well advised to consider how best to adopt these technologies to their needs.