Nothing is certain but death and taxes.
According to a 2016 study by neuroscientists at University College London, uncertainty can cause even more distress than knowing that something bad will happen. The need to have control over your future is natural, however, now more than ever, it’s difficult to satisfy it.
- Major tech to influence real estate
- A digital revolution in the industry
- Big data and proptech solutions transforming real estate
Unfortunately, we have entered times of uncertainty; the economy is changing, and it consequently affects working conditions, prices as well as the way people plan their future.
Even real estate, known for its traditional approach and reluctance towards innovations, has had to accept technology in order to keep up with hustle and bustle of the world. With economic uncertainty being the biggest enemy, real estate had to find its way to become independent.
The solution came in the form of Big Data and proptech.
Changes Affecting Real Estate
As previously mentioned, real estate industry was forced out of its comfort zone. Not only it had to implement new technologies and try out completely innovative solutions, but it also found itself constantly challenged by ever-changing socio-economic factors.
One of the most important factors that influence real estate industry is work culture that was revolutionised by the development of technology. Once an unreachable privilege, remote work became a new standard.
According to Global Workplace Analytics, the number of people who work remotely has increased by 140% since 2005 and is going to skyrocket. Seemingly unrelated, the possibility to work remotely has an impact on how and where we choose to live. With commuting not being an issue, we have the freedom to live wherever we want to; our budget is the limit.
At the same time, the old ideal of retiring after 40 years of working for the same company is rather outdated. According to a 2019 Bureau of Labor Statistics study, the average number of jobs in a lifetime is 12. Employees are more likely to change their jobs many times during their careers and therefore, they are less likely to search for a permanent place of residence. Due to this, the rental market is thriving.
High demand for premises for rent increase interest in buying real estate. However, it is not the only reason; in these uncertain times, people search for stability and permanent sources of income. Higher interest in real estate generates higher expectations: future investors require transparent information and profitability assurance; that’s why the industry had to implement innovations.
How Can the Market Respond to These Changes?
Rapidly changing public mood and higher expectations require tailored solutions. Thankfully, today’s technology significantly facilitates the process of forecasting the future of real estate. These proptech solutions not only help future tenants or investors in making the right decision but also give some comfort in these uncertain times.
Arguably, the most beneficial facilitation comes in the form of Big Data. The impact of Big Data is invaluable and offers a wide range of applications; from predictive maintenance to weather forecasting.
Big Data is also what makes proptech so useful; it is a powerful tool that allows predicting the future of real estate. Big Data analysis solutions can be used to store an enormous amount of information, such as historical prices in a given area and current and future investments like schools and roads. It increases accuracy and transparency; you don’t have to buy a pig in a poke and worry about the future of your investments.
Not only does Big Data help with reducing uncertainty of the future but it also offers personal marketing and advertising. The majority of investors search for properties online. It means that all the information about buyer’s preferences is available on the Internet.
Using predictive analytics and machine learning helps both real estate agents and investors; it is way easier to find the property that suits the budget and requirements, consequently reducing the probability of making rash decisions.
Proptech solutions also influence construction technology. Building Information Modelling (BIM) enables predicting how a building will be built, how long will it take and how much will it cost. With this kind of information, the uncertainty is reduced to a bare minimum, as Artificial Intelligence solutions work way more efficiently and infallibly than even the best experts. Crucial decisions about building can be made without the need to go anywhere near a building site.
Opportunities to Your Business: Big Data Forecasting the Future
In these uncertain times, with the economy changing day by day, it is crucial for real estate to reduce its dependence. Thankfully, Big Data and proptech provide revolutionary innovations.
With Big Data solutions collecting information and proptech solutions making use of them, it is far easier to accurately predict the future of investments.
Under these difficult circumstances, we have to become flexible and embrace the uncertainty, and, as far as possible, use available technology to make the future less unpredictable.