Data is of great significance to the real estate business. The importance of data analytics cannot be underestimated in any phase of growth for a company. If appropriately managed, data analytics can optimize a business performance, help companies realize if a strategy is suitable or not and bring forth new business models that sync with the target audience’s requirements.
Since data analytics gives insights about the business developments, interpretations, discovery and research trends and divulges new techniques that can be overlooked many times by companies, it is considered to be a crucial element in the business. It is a fundamental design for the growth map of the company in this competitive world.
Since the real estate sector has quite seemingly switched to the digital in terms of online property search, availing online real estate services, online site visits, registrations and payments done online, etc., there is a comprehensive collection of data available for companies to leverage, understand and predict a customer behaviour. While advanced technology allows for effective sorting and analysing of this data, the parameters based upon which the data is analysed have to be defined.
Take for instance, the requirements of a customer during property selection. Due to extensive amenities in properties offered by developers and the standard of living improved noticeably, the expectations of customers are high. Even developers across the affordable housing segment have been offering convenience and improved lifestyle by way of facilities and amenities within a property so that it suits every pocket. This has raised the aspirations of a home buyer unlike earlier times and has brought to us a new set of data meant to be worked upon to predict the exact preferences, requirements, needs and likes.
This micro level monitoring can be of immense help to companies involved in the business of real estate. Another mode of prime data collection could be to make predictions based on data from search engines, social media and other non-traditional sources. It is amazing to know the kind of accuracy a company can achieve by relying on this medium of data collection and algorithmic models.
Data analytics in real estate could be challenging but if derived accurately, it could be the most valuable addition to a company’s portfolio. Investment in data infrastructure, monitoring and analytics can be counted as one of the biggest competitive advantages of a company.
(By Ashish Narain Agarwal, Founder & CEO, PropertyPistol.com)