The rise of modern data analytics has had a transformative impact on many industries, and real estate is no different in this respect.
Understanding the changes that have been brought about by cutting edge number-crunching tech can help give you insights into the fresh opportunities that have arisen in this arena, so here is a look at the effect data analytics have had from a real estate perspective.
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Real estate is still considered a solid investment option, especially in an age when landlords are being given more opportunities to monetize the property they acquire through services like Airbnb. As well as tapping into the long term rental market, an entire industry has sprouted up around app-based vacation property rental, along with the promise of even bigger ROIs for investors.
Of course there are still lots of variables to take into account here, which is where data analytics come into play. You can use tools like Mashvisor for Airbnb data analysis to determine whether or not a particular property is worth snapping up, based on historic data pulled directly from the app.
Having access to the Airbnb API means that investors can make informed decisions and even plot out the likely earnings from a property over extended periods, saving you a lot of time, effort and guesswork in the process.
This is not just something that individual investors can leverage to their advantage, as the big data revolution is impacting entire property organizations.
There has always been a glut of data available to those working in real estate, although often it was difficult to glean actionable conclusions from the information available because of the sheer volumes involved.
Contemporary data analytics tools have helped to overcome such limitations, delivering insights and pinpointing trends which were previously unknown even to industry experts.
It has allowed academic researchers to discover that property prices rise after a Starbucks opens up in a given neighborhood. Such insights can be incredibly precise, drilling down into the data to determine the exact impact that particular factors like this have on house values in a given geographic area.
At a time when the ebb and flow of gentrification can be a real bug bear for investors and estate agents alike, data analytics can take the element of apparent randomness out of the equation and ensure any decisions that are made are founded on facts.
One aspect of modern data analytics tools that has also helped change the real estate industry for the better is the automation that they offer. The previously labor-intensive process of collating and comparing data points manually has been offloaded to machine learning algorithms that are infinitely faster and more accurate in their analysis.
This frees up resources so that professionals in the industry can spend their time on more important things that computers cannot currently tackle effectively. It also means that there is less time spent on analytics, which allows investors and agents to be more agile, responding to shifting circumstances on the fly.
As hinted at with the earlier mention of coffee shops having an influence over property prices, data analytics are allowing those in the real estate industry to learn lessons from information that comes from non-traditional sources.
From the amount of energy that is consumed by properties within a given neighborhood to the nature of the comments left on review platforms for local businesses, a lot can be learned by leveraging this info.
As data analytics become more integral to real estate, the benefits that it provides will surely expand further as well.