Data is the new, new fizz in the real estate domain, not only does it plunger the pace in retail market but also alters the strategies of real estate, to create quite a big impact on the marketing scales. But what actually matters is how the companies use the power of data smartly, to leapfrog other companies in this present high-time race.
Data and Real life
Data is now an integrated part of the real world, data is everywhere,it’s the basis of our modern economic world; ramping from common individual to large enterprises and firms- data is there. Big Data comes with numerous benefit slots for every other sector, however, it’s very conceptual with real estate, while still being an uncharted territory amongst the leaders of this domain.
Data Analysis, gateway to a whole new world!
To be exact, Data is everything which merges up our work procedure, how it is done, what it is all about and why it is done ! Strictly speaking, Real estate does not involve handling much of data, it keenly focuses on the ‘Consumer picture’ out in the market portrait. Real estate with the help of Data, analyses discrete data patterns to pick up decisions to raise better productivity with a multiplicative factor. Data in whole, comprises of a single database, easily accessible to a retailer or the company itself, which in case of real estate is coupled directly to the leveraging so as it raises the potential of that firm more realistically by showcasing a complete view of mortgaged and estimated prices before clients, hence eliminating doubts and hassles about the correct pricing of a project. REstate is one such start-up working in the same domain. With funding from UAE based Global venture capital equity firm Idein Ventures, REstate is looking forward to structure the real estate market in India; by providing real estate developers brand name to land to their finding and financing, and hence thumping its impression in the world of real estate. It claims to use data and research before constructing anything, so that the best possible building is constructed which gives the highest return based on the market needs.
REstate, headquartered at Bangalore and Hyderabad and with a well built team is growing notably in its current offline profile, also has a technology driven exclusive Land Bank that uses data analysis and market research to deal with all stakeholders- landowners and builders.
Leveraging the Data
Data is more about its orientation towards an agent itself and leveraging is all about making the data transparency in each process effective, so as to specialise with detailed analysis to lure a bigger sector of customers. Data, right now, is trying to uphold the roots of real estate involving advanced analysis and customisation aiming at engagement with comparatively a larger section of retailers,customers etc. Leveraging of such Data can be doned in following ways- here are some examples to show the potential of using data in real estate which some companies are doing:
- Traffic Data: If before building a residential or commercial complex in an area, a developer looks at the traffic data in the area and finds out how the traffic will play out, an analysis can be done on the kind of people who would be willing to work/live in the area. The entire building plan can change based on what the traffic data says.
- Neighborhood Data: Pricing of a property is not just dependent on the land which it stands on, but also on the kind of people present on the property and the kind of people present around the property. Hence, appropriate pricing for any construction can be justified only by having a detailed analysis of the neighborhood, with all data related to the income level of people around and a median of the same, the distribution chart of the kinds of jobs people are in, the distribution for the age groups of people living in the neighborhood, play a very important role, especially for residential construction.
- Combination of Traffic and Neighborhood Data: Now this is where the power of algorithmic conclusions come into play. The above mentioned data is not enough in knowing the price or cost or the type of construction needed on any land and there are tonnes of other parameters which need to be considered. And sometimes, a combination of some of those parameters (sometimes those permutations can run into millions) should also be given importance to conclude some aspects with respect to the said data. If traffic in the late evening – 8 pm to 10 pm- is very high on the roads surrounding the area, but the people living there are mostly from government jobs background, you are in a position to conclude that most of the traffic is from outsiders and the place has an affinity to attract people from outside the locality. This is a simplistic dumbed down assumption to convey the point.
Future with Data Analysis in Real Estate
With data assimilating completely in a technical world, it now seems easy for a manufacturer, retailer or a company to endorse its sales and products. And Real Estate is no different.though traditional developers are still not giving the data the importance it deserves, players and developer brands like REstate are coming up to give a new meaning to real estate development. The future is bright and data will play a major role in cleaning and improving real estate, and creating a much stronger and transparent real estate domain.
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