Data collection and analysis are influencing nearly every aspect of the real estate industry. Traditional business models are changing as more companies leverage predictive analytics and algorithms to discover trends and make better-informed decisions.
Let’s take a closer look at some ways data can help real estate companies analyze and understand the state of the industry.
Use Case #1: Geographic Information Systems
Real estate managers can capture, store, and visually display location intelligence that makes property hunting more accessible to buyers and investors. With data analytics and machine learning algorithms, they can quickly assess the profitability of a location based on ratings, traffic, occupancy, rental income, and ROI for the area.
Use Case #2: Competitor Analysis
In any industry, you need to know what your competition is doing. Using data analytics, real estate investors can research their major competitors to determine the factors behind their success. Through big data, they can gain insight into competitors’ products, services, sales, and marketing tactics that can help them identify a unique value proposition and differentiate their products.
Use Case #3: Predicting Property Potential
Reliable data is important when investing in a property purchase. Real-time analysis of financial and market data, combined with local building regulations, can give developers a more informed picture of the land they intend to buy. Automating preliminary property analysis using AI can help developers view the potential ROI of a plot of land.
Data can also highlight trends that show a greater return on investment and areas that have appreciated well in value.
Use Case #4: Building Management
The internet of things (IoT) can be a useful tool for real estate management. Data from sensors in home appliances and heating and cooling systems can be used for preventative maintenance, alerting property managers to failures and scheduled maintenance needs before an issue arises. This type of prescriptive analytics improves tenant experience and reduces costs.
Use Case #5: Advanced Search
Customers need to have specific and accurate information when buying real estate. Big data allows realtors and customers to create advanced searches based on criteria such as location, neighborhood, and crime rate when buying a property. Users can find detailed information on nearby grocery stores, shopping centers, restaurants, and schools, as well as how safe the general area is, before making an offer.
Use Case #6: Predicting Consumer Behavior
Data analytics can also predict consumer behavior. By analyzing data such as mortgage payments, home equity, the age of a property, and how long the owner has lived there, agents can predict when someone might be ready to sell. Such predictive analytics can give actionable insights into trends that point to property potential and higher-quality leads.
Use Case #7: Modeling Building Performance
To make informed buying decisions, investors need detailed information on rental rates, vacancy rates, energy consumption, and maintenance costs. They also need trend information about employment rates and consumer behavior to make decisions about commercial investments. Using this data, developers and investors can build 3D models that help them maximize space and use it more efficiently.
Power Unstructured Data Analytics for Real Estate
Investing in the right storage solutions is critical to leveraging the power of big data for real estate—a dynamic industry that relies on rapid analysis of unstructured data such as images, video, and social media content. Traditional storage solutions can’t efficiently categorize and manage these types of data. Systems need to be more powerful to leverage complex housing market data—especially on a national scale, and at the speeds consumers expect.
Learn how Pure Storage® unified fast file and object (UFFO) storage solutions can support the almost instantaneous growth and intense processing requirements necessary for real-time real estate analytics.
Harness the power of big data analytics in your real estate business with a modern data storage solution from Pure.
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