The Top 5 Proptech Storm Hitting Real Estate Industry in Next Decade (1)——Big Data

According to Andrew Baum, the professor of Oxford University, real estate is one of the last industries to adopt technological change and innovation. Buying and selling properties is a prolonged process that hasn’t changed a lot in the last decade. Much time and energy are wasted because of the low-efficiency of real estate. Real estate entrepreneurs realized that it is time for changing when Big Data, Blockchain, VR/AR, Internet of Things blew over the retail and other industries. How are real estate companies taking advantage of these new proptechs? Let us talk about them below.

1 Big Data

With the development of the internet, property companies are collecting and storing huge amounts of data from their products, customers and systems. Real estate professionals can utilize big data to make marketing strategies rather than having to make decisions based on hunches or best practices. Big data can be applied to all aspects of the real estate business.

(1) Providing Products more Catering to Customer Needs

As a developer, I need to answer the questions before I plan to create a project:

♦ Where should I buy the land?

♦ What type of buildings should I build?

♦ What kinds of style should I decorate?

♦ What’s the new project’s STP (Segmentation, Targeting, and Positioning).

These questions are critical to maximizing returns of a new project and never easy to answer quickly. Managing of the information extracted from the outputs of the censuses, assessing regional development potential based on geographic information systems and government planning, calculating customers purchase property pattern based on consumer behavior statistics and making the proper STP of new projects through the catalogs homes for sale and lease, etc., all of these can be done by big data analysis which helps developers to provide marketable properties and to improve the real estate investing and selling.

(2) More Accurate Ads to Reach Potential Customers

In China, everyone sees different interfaces when they open the Taobao app. This is advertising based on big data: a thousand people with a thousand faces. Similarly, we can pay for direct project ads to potential buyers through algorithms integrated customer’s purchase needs, purchase ability and buying preference, etc. Not only that, but they can also target ads of different house types to different customers. Buyers who want to buy a two-bedroom apartment will never see the ads of a three-bedroom apartment. Big data lead to far more accurately targeted advertising. 

(3) Providing Real Estate Buyers with Standard Information

Big data has made all the information about the property selling in every corner of a region available on the internet. You can check all the information about the house you are planning to buy, even company reputation and financial statements, you can compare with similar new houses about location value, investment potential, housing price, surrounding amenities and view the evaluations of other buyers. At the same time, big data help to ad you the most relevant and attractive offerings. Of course, there will also be some websites that provide free data consultation. As long as you input your purchase needs, the website will give you the most suitable recommendations based on its algorithm. Don’t worry about the rhetoric form sales and agents, you can be a professor.

(4) Real-time Customer Tracking Report to Improve Sales Efficiency

From which channel did customers view the house information, how long did they tour, and what contents did they like? The information can’t get before are now realized by real-time data tracking system with consumer online behaviors and reports sending to the sales and agents such as IDEAMAKE. They can analyze consumers’ purchase intentions, truly purchase demands, and then conduct sales’ follow up timely and effectively. Big data make every selling action based on evidence and therefore close more deals.

(5) Creating a More Comfortable Living Environment

“We’ve put sensors on the equipment in a building, for example, every 15 seconds we get a read on the air temperature if the fan is on or off. Then we can feed data into algorithms, like if this fan is working, then it shouldn’t generate a work order to fix it. We can also figure out whether data correlating to x, y or z.” – Richard Brown, JLL’s head of Business Intelligence in the U.S. Smart buildings.

Smart furniture based on big data are gradually entering the market, you can control all of the things of your house even when you are out through remote control. Indoor temperature and humidity can be adjusted automatically, lights and windows can be turned on / off automatically. It is an amazing and desirable life. Big data will make it more affordable in the near future. 

What’s more, with sensors and cameras, real estate developers can track every step of the construction process to ensure secured businesses. Big data can penetrate the entire process of real estate to lighten the whole industry in the next ten years. If you have any questions or want to discuss with us, please leave us a comment below or email us: contact@ideamake.cn. We will talk about another Proptech, the impact of blockchain on real estate. Keep expectations if you like our articles.

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