It has always been said that technology will change everything, and technology has changed a lot of things. With an increasing exposure of real estate to modern technologies, the potential for a digital disruption in the sector has increased manifold.
According to a Deloitte study on technology and industry, new developments in technology will require people to adapt the way they live, work, and consume. This will require real estate providers to develop innovative strategies for meeting the demands of tomorrow if they are to stay ahead of the curve. This requires them to keep tabs with some of the developing technologies some of which are highlighted here.
In real estate, one of the rapidly growing technological segments relates to big data. A growing number of real estate deals rely on data analysis to arrive at decisions. ‘From faster, more accurate appraisals to sophisticated forecasts, the use of analytics can lead to smarter decisions about property investments.’
As the recent Deloitte big data report puts it, ‘it seems likely that companies specializing in big data processing will enter the real estate services market.’ These companies are likely to give real estate providers a run for their money owing to their superiority in innovation and technology to break into new markets as well as their viability for cash backing from financial institutions.
But big data is not the only tech monster to watch out for
Real estate can be a labour intensive business especially for developers. Robotic gets into the picture at the intersection between increasing wages and automating some tasks. The report points out that ‘robot manufacturers may not be content to remain suppliers to real estate service companies, putting real estate service providers’ share of the building services market at risk.’
What’s more, with advancements in artificial intelligence, robots are expected to take on more complex tax in future including reception and sales which could alter the way real estate service providers deal with personnel issues in reality. The way we experience reality in real estate however, is also under a major transformation
Augmented and Virtual reality
Another piece of promising technology is the AR/VR combination. These are already playing significant roles in visualization and location of defective components, reproduction of experiences in the built environment and provision of location specific data. The report states that ‘AR/VR devices can display corresponding system information directly in the field of view and, when walking around the building.’
In future, AR technology could reduce the need for hard copy plans and documents as well as the need for agents to take clients on property tours as these will be better done with the aid of AR/VR devices. But these kind of devices feed on data, and so we have sensors to collect the data.
The foundation of all data-driven real estate technologies are the sensors. Sensors technology has been getting better while their prices have been falling, enabling widespread adoption. One of the kay advantages is that sensors will aloe real estate service providers to operate on demand because sensors can spot troubles immediately they pop up. The result will be quicker responsiveness, lower cost and greater efficiency.
The main catch however will result for the data captured by the sensors which will enable real estate service providers to align their services according to user requirements. Data like recorded dates of maintenance or repair, day-to-day resource utilization, energy efficiency and building control will come in handy for those interested in optimizing building performance.
Internet of Things
This is the string that ties it all together. The embeddedness of technology into everyday objects is one of the fastest growing trends in technology. Leveraging on connectivity toensure communication between people and objects, the internet of things will place huges masses of concrete and glass in the palms of people.
The International Energy Agency suggests that “IoT technology could lower the energy consumption of residential and commercial buildings globally by as much as 10 percent between 2017 and 2040.” This can only be made possible by establishing smart ways for linking data and devices to enable intelligent automated decisions.
In summary, the question is not whether technology will change everything in real estate but when. Even more important is the ability to take strategic action in the face of rapidly advancing technology. Complacence could give away your position to the competition.