Big data is transforming the property market. There we’ve said it. But how? Generally speaking, big data, whereby data too large for the human mind to process is analysed by computers, is creating a more transparent property sector, through the rise of connected buildings and changes to property management and sales. In short, big data can help estate agents reduce risks and costs, increase efficiency, and become a more transparent market.
Data-driven decision making
Errors when processing data by hand are rampant. Such errors can range from simple administration mistakes that don’t cause too many problems other than lost time, to deliberate unlawful action by employees, costing a property company dearly in money, time and reputation.
Research, which analysed the property industry’s use of data, found that $11 trillion worth of property assets are being managed by spreadsheets that have been manually inputted. The report concluded that with nearly a third of the global commercial real estate (CRE) industry still relying on spreadsheets as their principle tool for portfolio and asset management functions, the property industry needs to:
“Speed up investment in technology innovation to efficiently capture and manage increasing levels of capital allocation to the industry.”
The concept of “data silos”, an unconnected approach to managing property information and assets, which typically requires weighty data collection from numerous different sources, is hampering decision making driven by data in the property industry and the reporting transparency that modern property investors are increasingly demanding.
By contrast, innovative data infrastructure solutions unleash more efficient data management and reporting practices, ultimately boosting productivity for estate agents and property professionals utilising innovative, big data solutions.
Capturing data through smart buildings
Big data is also crafting the way for smart buildings – properties comprising of sensors and technology that are revolutionising our homes’ operating systems, such as lighting and heating, to create a more efficient, high performing building.
The data captured through smart buildings provides property professionals with sound insights into a property’s lifecycle, from its construction, its tenancies to its demolition.
For example, in commercial properties, vacant and occupied space can be tracked via sensors, thus identifying space that could be used more proficiently.
Sensors are used to turn off lights when a part of a building or the whole of the premises is empty, helping occupants save on energy bills.
Consequently, big data generated by smart building technology, can help companies rationalise costs.
Real time applications
As big data is often used in real time, it can prove invaluable in helping investors, estate agents and other property professionals make informed business decisions today, not tomorrow and certainly not next week.