In recent years, predictive analytics has been significantly transforming the real estate industry. Analytics is driving a more streamlined and intuitive transaction experience, for generating a higher level of trust between the sellers and buyers. With the help of analytics, prospective investors are also able to predict which of the properties will become popular in the future so that they can buy the best property.
Not all data are created equal, so as a real estate investor, you have to find the actual data like the demographic reports, EPA reports, flood maps, traffic counts, which can give you an accurate idea.
Data Analytics – How it has become the driving force in real estate?
Just like the banking industry where there has been a huge acceleration in the decision making process from investing in the capital markets to approving the credit card applications, the real estate investors have also started leveraging the data for making a precise and informed decision. They are saving time by using predictive analytics. Before with the help of the traditional methods, it was taking about three months for finding a rental property, but now one can use predictive analytics, which will take some minutes for finding the rental property.
Data can provide performance reviews on the different types of agents or real-estate businesses. Consumer information can also help in ensuring that users find reputable agents. Some real estate companies like Trulia and Zillow have also based their business models on data analytics. It also helps in tenant targeting like using predictive analytics, by which investors can determine who their tenants are in the coming next 2-3 years. Data analytics can also help in faster and accurate appraisals as it provides a large amount of information about sales in the same area. An accurate analysis can help in a seamless real estate transaction process.
The future of the real estate industry relies on the data. Investment in the data infrastructure, analytics is going to add a competitive advantage for real estate professionals. The more accurate data insights and precise data will help in predicting whether the asset has to be purchased or not.