Big data is a term used to describe large volumes of structured and/or unstructured data that can be used by a business. However, it is not the amount of data a business has access to that matters, but how the business uses that data. The data is useful when analyzed for insights leading to strategic business moves and better decision making.
The Real Estate industry is known to be one of the industries that rarely embrace the introduction of new technologies. Most of the time, new innovations are the last to come to the real estate industry. However, in recent times, modern technology has reshaped almost every other area of the activities of real estate companies. This means that big data has had a lot of influence on the operations of real estate companies.
Big Data Processing in Real Estate
In the real estate industry today, a significant number of transactions rely on data analysis. The use of analytics, according to a Deloitte Global Study, has led to smarter decisions about property investments powered by faster and more accurate appraisals and sophisticated forecasts.
Companies specializing in big data processing have entered the real estate service market due to the large data that real estate together with its users generate. They have also developed technologies such as the most useful APIs to aid in data collection and analysis, making their work quite simple.
Marketing and Advertising
Big data has opened ways through which real estate is creating personalized advertising and marketing. Most real estate companies are now using big data software in marketing and advertising. For example, a big percentage of home buyers will first search for a house online. When a buyer visits a site selling houses, chances are that they know exactly what features they want in their house.
They might visit the site, browse a particular house and leave without initiating a conversation with the seller. Big data analysts will chip in at this point and show marketers of that particular site all the data concerning the interests of that particular buyer who left. This might include things like country of origin, their age, language among others. This type of data makes it possible for the real estate company to run personalized advertisements.
Thanks to big data, real estate buyers can make informed decisions about whether to make a purchase or not. Detailed information collected from open source websites, management companies, reviews on social networks and educational institutions contributes a lot to the decision making of a buyer.
Big data has made it possible for buyers viewing a house on a real estate website to find out more information that might not be provided on the website. Such information might include the age of the house, utilities available, repair and demolition possibilities among others. This shows just how big data plays a huge role in the real estate industry before a transaction can be initiated.
When it comes to the real estate developers, big data plays a major role in their decision making as well. For example, location is an important element when it comes to the success of a commercial property. Big data helps a real estate developer to choose an optimal location for the project by considering the purpose of the property. For instance, big data is very useful in guiding a real estate developer when deciding on the best location to build a mall that will attract more customers.
Even though the process of implementing big data in the real estate industry has been a little bit slow compared to other industries, most real estate companies are already using it. They are increasing sales while making sure that they personalize advertisements and put up properties in the most ideal locations.