Proptech technologies and the rising Tide of Real Estate Technology

Newer technology like big data and analytics can shake up and revolutionize nearly any industry. The real estate industry is no exception here, and has, in fact, already begun obtaining the rewards that big data and data-driven technologies can deliver.

The vast amounts of data generated by the real estate industry can be utilized to its advantage even further going forward as new technology and innovations are pushing the envelope for the real estate industry at both the macro and micro scale.

Analytics is one of the most basic and powerful data-driven tools that the real estate industry has at their clearance comes in the form of analytics. The benefits of data analytics in real estate spread to both the consumers and realtors because it allows for continuous property evaluation across a huge spectrum of parameters from expected appreciation and depreciation rates to crime statistics, accessibility, and other factors. Analytics not only allows for real estate companies to determine value more accurately and mitigate risk but also increases customer engagement as well, providing them with highly appropriate information regarding potential purchases.

The vast amount of real estate data available can, and should, be utilized for maximum analytical impact just as Wall Street uses the data available to model algorithmic trading. Over the use of data analytics, investors and realtors are able to keep up to date on vital market data in real-time, permitting for the ability to stay ahead of the curve on the quickly changing market of commercial real estate. Some of these vast pools of real estate data are already being used by Artificial Intelligence programs to enhance the customer experience through personalization and predictive home evaluation over time. AI supports to accurately predict which locations will be the most beneficial for developers to invest in, improving market-level profitability and revenue and revenue as well as helping to identify optimized spatial layouts of new developments.

The real estate industry has been comparatively slow in hopping on the big data train; Virtual reality has taken a shorter time for the industry to see the massive value that data brings to the table. Data can show developers, investors, and potential buyers detailed and relevant information about real estate without ever having to see it in person. While macro-level data like crime statistics, land valuation, accessibility, and traffic flow are extraordinarily important when looking at real estate development and investing, the data generated at the micro-level is now coming into play in a big way.

VR (Virtual Reality) is another new data-fueled technology that benefits both buyers and sellers of real estate. Realtors enormously expand their market as realtors don’t have to set up actual appointments to show a home and can actually show it simultaneously to many different potential clients.

Proptech, technologies that capitalize on the vast amounts of data generated in the world of real estate, which is in work to help both purveyors and purchasers to make more informed decisions is rising. Proptech technologies are unlikely to complete flip over the real estate industry anytime soon, considering the industry’s historically slow adoption of new technology. Proptech will revolutionize how properties are sold, evaluated, marketed, and even seen on a very real level.