Big Data In Real Estate Industry: Main Reasons To Adopt It Right Now

Nowadays IT technologies drastically change the structure of the commercial real estate market. Innovative technologies change almost everything in real estate sector, starting from the business model building, human resources management or optimization of expenditures.

Big Data is one of the technologies that gained it's popularity in the real estate markets of many countries. The goal of Big Data technology is to automate the analysis of huge amounts of data from multiple information sources. And human capabilities will not be enough to process all this data. Therefore, companies will be able to optimize financial costs, time, and achieve a more accurate result that won't be affected by a human factor.

Big Data works with machine learning to solve main business tasks. Huge data massive is analyzed according to set algorithm, and artificial intelligence provides people with the solution of a specific task. The most widespread example - credit appraisal of a borrower in banking or microfinance sector. Many banks already make their decisions on loan issuance on the basis of the verdict from an automated system.

Big Data potential usage on real estate market is multipurpose. If it comes to an end consumer, then real estate Big Data can help consumers appraise objectively various real estate objects by multiple parameters. Modern real estate databases offer rather limited information volume about different objects interesting for you.

• For example, real estate predictive analytics with Big Data technology helps to estimate the time you need to spend to go to the specified object in rush hour, how many schools and kindergartens are located in this area, and other related issues;

• Thus, Big Data makes it possible for an individual to make a quick decision whether he/she needs to waste their time on this object or it is better to choose something else.

As for business, Big Data potential can also be titanic. Technology can be highly efficient for marketing fields starting from personalized offers to end consumer to the determination of real estate object type with all tiny properties that can be built in that or another location.

So what are Big Data benefits that make it possible both for real estate agents and consumers improve their interaction with this field? It is time to find out.

Mind that everything mentioned above works only if you have an appropriate custom software that will use Big Data together with machine learning algorithms. Experienced software development companies will help you build a high-quality product. As for our skills, Cleveroad has enough experience to work with real estate software development service and Big Data.

Having clarified the main benefits, it is the time to speak about use cases or ways of application of Big Data in the real estate sector. How do real estate companies use Big Data? Hurry up to see it.

All real estate companies change their approaches and strive for data democratization (i.e. building of more transparent and clear data) for all potential and current consumers. Thus, such famous companies like Trulia, Redfin, Zillow, and others work on processing of real estate industry data and providing people with a detailed information regarding latest surveys, full lists of homes/apartments for sale/rent, maps with regions where you can filter real property by it's value and so on. So the main idea of companies is to give people clear and authentic information, decrease fraudulent and obscure schemes to zero.

Using Big Data in real estate, apart from transparency in information, nowadays people are able to find all the actual information about the region where they plan to buy a house, for example. As this sphere also requires a huge amount of data, Big Data processing is used here successfully.

• Property particularities. All detailed information about different regions, where customers may study what neighborhood is over there. Besides that, each customer has it's own interest, for example, you need to find out what universities are located nearby since your children need the educational establishment to study. Whereas your friend wants to know what is about entertainment - nightclubs, cinemas and so on. All this advanced info you can find on real estate websites;
• Crime rate. Nobody wants to live in a deadly and dangerous neighborhood where you or your relatives can be hurt. That is why crime rate indices are very important for customers before they make their decision to buy a real property. To calculate all these rates, companies use Big Data, of course;
• Education levels. Big Data real estate analytics helps customers see how prestigious and popular educational establishments (schools, colleges, universities) in the region they need.

It is just a few examples of Big Data application in filters when you investigate information about the real property. By the way, to collect the information mentioned above, the Internet of Things technology can also be applied. Keep on reading!

Different sensors installed in homes and around them gather various data like pressure, temperature, the number of visitors, ecological standards etc. We call it the Internet of Things. As a rule, data flow from one house isn't very large, but large infrastructures send a huge amount of data where Big Data technologies should be applied since it may have a negative influence on the performance speed.

Thus, Big Data in commercial real estate can help you create decision-making systems with machine learning that will automate building maintenance process as much as possible, and it will be one specialist enough to deal with it instead of a large team. Integration of Big Data will significantly increase the efficiency of data flow and maintenance.

You may be surprised, but this process is rather complicated and companies work on it using various models and algorithms. This task requires many resources so the application of Big Data is reasonable. Big Data algorithms will simplify the process and they will help value the efficiency of the office, shop or mall functionality in the specified region. Machine learning tools with predictive analytics will be able to predict the expediency of building for a few years ahead. Real estate and Big Data prove again it's successful collaboration.

And the last but not the least one Big Data use case is a promotion. Real estate companies use real estate Big Data analytics to analyze the interests and preferences of customers that visit their websites and they work on the improvement of this information. Every day they can modify their information according to people needs. As a result, customers get a high-quality service, and companies increase the engagement and multiply revenue.

Based on this, Big Data can drastically modify the real estate sector, so if you have a real estate business or you plan to occupy this niche, mind to use Big Data technologies.

As you can see, the future of commercial real estate Big Data is very optimistic and we simply cannot ignore it. So you should think about the development of your own data-driven software with machine learning algorithms. And Cleveroad can lend you a helping hand.

• First, you can build your custom real estate software according to your personal needs. You can use ready-made apps, but the majority of them have limited functionality that can be inappropriate for you;

• You may need an app for a smart home that works with Big Data, and you can make a profit from it since such app will be powerful and efficient for many people which live in a smart home. Our guide to smart home app development can be also interesting for you.

• Internet of Things: this is a popular and profitable field for today. It is tightly connected with the principle of smart home maintenance, but IoT is a wider conception and it can be used on warehouses or office building. Read more about IoT business opportunity and make your decision.

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