Big Data is the collection and analysis of massive data that people constantly leave behind, mainly on the internet but also shopping transactions, geopositioning, etc.
There are multiple utilities where the real estate sector blue world can make profitable this large amount of information, for example if custom homes are built and sold , or knowing the demand data of future clients to minimize investment risks .
Objective of Big Data: turn data into useful information
Every day we upload thousands of data anonymously and personally. We are leaving an extensive amount both in our searches on the Internet, as in social networks or also browsing different web pages.
This information is complemented with official studies from city councils, private databases or with reports from auditing companies. By processing and analyzing this data, specific information is obtained.
In the real estate sector we can work mainly on two aspects, Supply and Demand . For example, from the demand point of view, we can analyze if the person is married, if they have children who live with them, their salary band, their hobbies, purchasing tendencies and so on. Once they are analyzed in graphs and reports , precise robotic portraits or personal buyers of real estate buyers can be drawn up .
This detailed study allows segmenting the demand , building a profile of the new owner and their interests in the Real Estate market. If we combine demand and supply studies, we can design ideal promotions for a target group of people .
How to apply Big Data in agencies and real estate developers?
Thanks to the meticulous development of the owner models, we will know what they are like. Likewise, if we extrapolate the characteristics of the user, we obtain the requirements that their new floor must meet and even how much they are willing to pay per square meter. Thus, everything is ready to build the personalized home to suit the client .
In other words, the developer can build apartments with this prototype buyer in mind, focusing its sales efforts on said sector of the population. In this way, if we know the demand in advance, we will greatly reduce the risk in the investment.
In other words, thanks to Big Data, the developer will know the areas where there is a growing demand for new flats. And not only that, but the specificities of each new home . With a garden? With balcony? Storage room? Near a school? Or ethnic restaurants?
From the other side, the buyer will acquire a home in the area that interests him and that meets his needs. So it considerably improves the user experience in their relationship with the promoter. Your satisfaction can later be used to recommend us or become an ambassador for our brand.
The future of Big Data in the real estate sector
Using Big Data correctly reduces uncertainty, such as in periods of high demand such as real estate bubbles. That is, thanks to the detailed knowledge of the demand provided by the analysis of this data, only houses will be built that can be sold to people who want to buy.
Crossing data of current real estate assets with records of previous apartments, it is possible to mark an evolution of the real estate market and its trends, in addition to not investing in vain in promotions with low profitability
On the other hand, conducting a deep geolocated study can analyze an entire city or a specific neighborhood. Assess if it has green areas, the density of traffic, if it is advisable to build new commercial premises or if it is well located to take on a new office building. This prior information causes a drastic change in the decision-making process in Real Estate.
In conclusion, the benefits that Big Data brings to the real estate sector are these four:
- Accurate demand forecasting that lowers investment risk
- The buyer will receive their ideal apartment, the one that meets their specific requirements
- Uncertainty is avoided since developers can match supply with existing demand
- Carry out a study by geographic area to determine the needs of each neighborhood
Do you want to launch into the study of Big Data to obtain better results in the real estate market? Or are you already applying big data analysis techniques? If so, explain your experience in the comments and share this post.
The Millennial Generation Redefines The Future Of Real Estate
Those born between 1984 and 2000 is a generation that wants to travel and not be anchored to a single property for their entire lives.
They prefer to rent and enjoy culture and leisure in central areas of the city, rather than tie themselves to a bank for three decades or more. It is a generation characterized by hyperconnection, adaptation to constant changes, the need to express oneself, immediacy and the search for experiences among others.
Millennial Generation Lifestyle
Millennials want different experiences throughout their lives. Your wishes are short-term, ephemeral, and fast-paced. They watch movies they buy on the spot, pay for songs to listen to now, and book last minute flights to break out of their routine instantly.
That is to say, among their priorities is not to sign a contract that forces them to plan their lives 30 years in advance.
On the other hand, these young people are also the non-credit generation . They live from day to day, due to job insecurity, saving is not viable, so neither the banks nor they consider the possibility of long-term credit.
Differences of millennials with other generations
The sale and purchase will no longer be the heavyweight of the market, since millennials reject this option.
Twenty-somethings and thirty-somethings are aware that life can change, so they do not want to marry any bank for life. A job in another city, a new family member or job instability can cause a home to no longer be as ideal as when the mortgage was signed.
In addition, if the rent gains market, the cities will be more similar to their European neighbors, since, the tendency of the continent is to prioritize the rent more than the purchase.
How to attract millennials in the digital world?
People between 25 and 35 years of age constantly interact with the Internet and social networks. In other words, to reach this target it is essential to work on the digital plane. Real Estate agencies and promoters that wish to attract them must invest in online communication.
After all, the first impulse of a young man when looking for a new apartment is to dive on the Internet. Then, after comparing prices, square meters, location and, very importantly, photos of the property, the user decides to contact the owner.
But to be successful on the Internet, the seller must adapt to the rules of the network, that is, agility , clarity and transparency . The response of the real estate developer must be immediate, direct and frank, solving all doubts and giving constant follow-up to users.
For someone to trust another person through the screen, they must be sure that they are interacting with another person, a committed and informed professional.
Millennials’ way of buying Real Estate
Now, despite the fact that renting will be the trend among young people, will they still buy houses? The answer is yes and no. Surely, the success stories will be those purchases that provide more flexibility. For example, rent-to-own is an intermediate alternative that satisfies both tenants and tenants.
Also, it is important to highlight the role of startups fintechs and proptechs , companies that have realized the importance of boosting financial and real estate processes through mobile phones. Even applications for smartphones that allow you to take out a mortgage without stepping on a bank branch.
Millennials are used to checking every product they buy on the Internet, and this check also happens with mortgages, so the more information online you have at your supply, the more likely you are to interact.
In short, millennials want to enjoy their life without being tied to an eternal mortgage. Renting is your first option, but if you apply agile and simple methods online you may end up buying.
Did you like this post? So, share the entry. Thinking of buying? Or do you feel comfortable in your rental? We look forward to your comments!
What will your company bring to the list?
The main information you will have to share when joining a Property Listing is your properties. You will generate more opportunities for the competition, but also for your company with the information that you will receive in return. Also, you will have a greater presence, representativeness and share in the real estate market.
In conclusion, the seller multiplies his possibilities of sale , by having his property in a multitude of real estate agencies. Likewise, the buyer can access a wide portfolio of clients, facilitating their search.
The real estate company benefits from a common tool that facilitates the acquisition of exclusive properties and an association between companies like nova project in the Real Estate sector.
Undoubtedly, the Property Listing is an alternative that has to be considered by companies in the real estate sector, both those that are just starting and those that are already consolidated. Is this information interesting to you? Share it!