how big data is changing the real estate industry

1
USA | INDIA | UAE Source : https://ww2.frost.com/event/calendar/big-data-analytics-whos-buying-what-and-what -are-they-missing/ https://www.catella.com/Documents/Germany%20Property%20Funds/02_Research /01_Studien/Catella%20Resarch_Big_Data_%202015_english.pdf info@fingent.com | www.fingent.com Copyright © 2017 Fingent Corporation. All rights reserved. BUILDINGS Huge volumes of technical data are analyzed in real time. Owners can modify buildings to enhance efficiency that will reduce operational costs. However, big data does not have the same impact on every field and business division in the real estate sector. SERVICES Transparent customer profiles ensure providing better fit, high quality and personalized offers for clients which they can’t resist. MARKET Big data strategies can produce financial, investment and market insights that help with assessing risks and making decisions. Major Impact • Transaction Consulting • Property Investment • Building Management 0.9% Big Data will make research redundant as a market segment 21.5% Researchers can use big data to supplement their work 36.4% Research will become more important as a result of big data 41.2% Quality will improve in the research sector and the work of researchers (output at work : 80% analysis, 20% data gathering; more accurate statements about future developments in the real estate market) • Fund Management • Property Finance • Project Development / Implementation Medium Impact No Impact TODAY Analysts compile the data necessary for their analyses from a host of sources they must themselves find and assess Big data applications usually run in the backgroung and generate output for analysts in the form of small / smart data Information searches and data gathering Unstructured sea of data Big data application People 2025 TODAY 2025 80% Data gathering 20% Data analysis 80% Data analysis 20% Data gathering Big data queries Smart / Small data Smart / Small data People 5 10 15 20 25 30 35 5.7% Property Finance 14.3% Fund Management 30.5% Property Investment 23.8% Transaction Consulting 16.2% Building Management 9.5% Project development / Implementation 67% - Big data brings transparency to the markets 48% - Enhance risk adjusted investment decision making Agree in part 49.1% Disagree 31.1% Agree strongly 16.0% Top Opinions of the survey participants on why should investors adopt Big Data Analytics : Disagree strongly 3.8% BigData Database Technology Customer Experience & Customer Relationship Management 71% – It improves / supports decision-making processes 32% - Optimizes property investment models 62% - Improves transparency of real estate markets 25% - Provides accurate property evaluation 52.8% - Minimizes risk 5.5% - Other 39.8% - Helps Predictive analytics (using historical data to forecast/ identify trends) 22% - Improves communication for market participants Financial Analytics 59% - Big data helps minimize risks 19% - Gathers automated KPIs such as take-up and investment volumes 51% - Enhanced standardization across the real estate 6% - Management has less autonomy when making decisions 49% - Positive contribution to investment decisions 5% - Cannot see big data having any impact on the real estate sector 16.0% 1 Disagree strongly Disagree D 49.1% 4 gl % % e % % g o rt 1% 1% e 1 1 i e 0 10 20 30 40 50 60 Popular Business Intelligence Social Media Monitoring Mobile Commerce Analytics External Data Sets Not So Popular Data Discovery Tools How good a market is for investing How does this data help them get rich? How much money other investors are making Tells them the competition How much money they could be making Guide capital decisions on acquiring property Better understanding communities and local markets Focussed and predictive real estate marketing and boosted pitching Highly customized servicing Target the right customer with the right offer they can't resist Property Dealers can't fool customers about the value of certain property Easily find the best property that matches their preferences Make more informed decisions based on real data Feel more confident and satisfied about their decisions Leverage Big Data to perform more granular modeling of their MBS portfolios Making Construction Administration Better Risk Data Aggregation & Calculations Detect and Prevent Money Laundering (AML) Smart Cities, Net New Investments and Property Management Banks can use big data resources to determine whether a foreclosure or short sale is really worth what a buyer or investor might be offering The knowledge of actual property value can help them wait for a genuine buyer rather than a smart investor Shows what property to pick and what strategy to use Sentiment analyses Predictive analytics Cognitive computing AI BIG DATA What data? · Company data · Economic data · Market data SMART DATA What data? eg : Market reports Support during decision-making Risk analyses Forecasts For REITS For REALTORS For BANKS For BUYERS PROS CONS More accurate forecasts / predictions Big data doesnot have the same importance at all companies Market Transparency Identifying previously unknown potential Faster and more comprehensive analyses More expensive to harness Privacy and data protection : who is allowed to use the data? Swarm stpidity ? -> “Percieved connections” ? Faster reactions by management Improved customer service DATA MINING AND ALGORITHMS Data mining using automated algorithms Research Ad-hoc queries Forecasts Evaluation of decision-relevent market in formation Market reports Analyses More accurate forecasts / predictions Identification of complex relationships Market reports Analyses Working with probabilities Automatic statistician CHANGES IN ANALYSTS’ WORK BETWEEN NOW & 2025 POTENTIAL OF BIG DATA IN THE REAL ESTATE SECTOR HOW STRONGLY WILL IT IMPACT DIFFERENT REAL-ESTATE FIELDS & BUSINESS DIVISIONS IMPACT OF BIG DATA ON RESEARCH/MARKET ANALYSES REAL ESTATE INDUSTRY SECTOR THAT WILL UNDERGO THE GREATEST CHANGES DUE TO BIG DATA THE OVERALL IMPACT BIG DATA CAN HAVE ON THE REAL ESTATE SECTOR WILL MORE DATA LEAD TO MORE STABILITY ON MARKETS ? TYPES OF BIG DATA ANALYTICS ENTERPRISES ARE USING WHY SHOULD INVESTORS CARE ABOUT REAL ESTATE ANALYTICS? WHAT DOES PREDICTIVE DATA TELL A REAL ESTATE INVESTOR? KEY BIG DATA APPLICATIONS FOR BANKS, REAL ESTATE INVESTMENT TRUSTS (REITS) & BUYERS BIG DATA’S PROS & CONS 100 exabytes 1 zettabyte HOW BIG DATA ANALYTICS IS CHANGING THE REAL ESTATE INDUSTRY HOW BIG DATA ANALYTICS IS CHANGING THE REAL ESTATE INDUSTRY

Upload: fingent-corporation

Post on 21-Jan-2018

59 views

Category:

Real Estate


0 download

TRANSCRIPT

Page 1: How big data is changing the real estate industry

USA | INDIA | UAE

Source :https://ww2.frost.com/event/calendar/big-data-analytics-whos-buying-what-and-what-are-they-missing/

https://www.catella.com/Documents/Germany%20Property%20Funds/02_Research/01_Studien/Catella%20Resarch_Big_Data_%202015_english.pdf

[email protected] | www.fingent.com

Copyright © 2017 Fingent Corporation. All rights reserved.

BUILDINGS Huge volumes of

technical dataare analyzed in real time.

Owners can modify buildings to enhance efficiency that will

reduce operational costs.

However, big data does not have the same impact on every field and business division in the real estate sector.

SERVICES

Transparent customer profiles ensure providing better fit, high quality and

personalized offers for clients which they can’t resist.

MARKET Big data strategies can

produce financial, investment and market insights that help

with assessing risks and making decisions.

Major Impact

• Transaction Consulting

• Property Investment

• Building Management

0.9%Big Data will make research redundant as a market segment

21.5%Researchers can use big

data to supplement their work

36.4%Research will become more important as a result of big

data

41.2%Quality will improve in the research sector and the work of researchers (output at work : 80% analysis, 20% data gathering; more accurate statements about future developments in the real estate market)

• Fund Management

• Property Finance

• Project Development / Implementation

Medium Impact No Impact

TODAY

Analysts compile the data necessaryfor their analyses from a host of sources they

must themselves find and assess

Big data applications usually run in thebackgroung and generate output for

analysts in the form of small / smart data

Information searches

and data gathering

Unstructured sea of data

Big dataapplication

People

2025

TODAY 2025

80%Data

gathering

20%Data

analysis

80%Data

analysis

20%Data

gathering

Big data

queries

Smart /

Small data

Smart /

Small data

People

5

10

15

20

25

30

35

5.7%PropertyFinance

14.3%Fund Management

30.5%PropertyInvestment

23.8%TransactionConsulting

16.2%BuildingManagement

9.5%Project development / Implementation

67% - Big data brings transparency

to the markets

48% - Enhance risk adjusted

investment decision making

Agree in part 49.1%

Disagree 31.1%

Agree strongly 16.0%

Top Opinions of the survey participants on why should investors adopt Big Data Analytics :

Disagree strongly 3.8%

BigData Database

Technology

Customer Experience & Customer Relationship

Management

71% – It improves / supports

decision-making processes

32% - Optimizes property investment

models

62% - Improves transparency of real

estate markets

25% - Provides accurate property

evaluation

52.8% - Minimizes risk

5.5% - Other

39.8% - Helps Predictive analytics

(using historical data to forecast/ identify trends)

22% - Improves communication for market participants

Financial Analytics

59% - Big data helps minimize

risks

19% - Gathers automated KPIs such as take-up and investment

volumes

51% - Enhanced standardization across

the real estate

6% - Management has less autonomy

when making decisions

49% - Positive contribution to

investment decisions

5% - Cannot see big data having any impact

on the real estate sector

16.0%16.0%

Disagree strongly

Disagree Disagree

49.1%49.1%

Agree strongly 16.0%16.0%Agree strongly

3.8%3.8%Disagree strongly Disagree strongly

Agree in part 49.1%49.1%Agree in part

31.1%31.1%Disagree Disagree

0 10 20 30 40 50 60

Popular

BusinessIntelligence

Social Media Monitoring

Mobile Commerce Analytics

External Data Sets

Not SoPopular

Data Discovery

Tools

How good a market is for

investing

How does this data help them get rich?

How much money other investors

are making

Tells them the competition

How much money they could be

making

Guide capital decisions on

acquiring property

Better understanding communities and local markets

Focussed and predictive real estate marketing and boosted pitching

Highly customized servicing

Target the right customer with the right offer they can't resist

Property Dealers can't fool customers about the value of certain property

Easily find the best property that matches their preferences

Make more informed decisions based on real data

Feel more confident and satisfied about their decisions

Leverage Big Data to perform more granular modeling of their MBS

portfolios

Making Construction

Administration Better

Risk Data Aggregation &

Calculations

Detect and Prevent Money Laundering

(AML)Smart Cities, Net New

Investments and Property Management

Banks can use big data resources to determine whether

a foreclosure or short sale is really worth what a buyer or

investor might be offering

The knowledge of actual property value can help them wait for a genuine

buyer rather than a smart investor

Shows what property to pick and what strategy to use

Sentiment analyses Predictive analyticsCognitive computing

AI

BIG DATAWhat data?

· Company data· Economic data

· Market data

SMART DATAWhat data?

eg : Market reportsSupport during decision-making

Risk analysesForecasts

For REITS For REALTORS

For BANKS For BUYERS

PROS CONS

More accurate forecasts / predictions

Big data doesnot have the same importance at all companies

Market Transparency

Identifying previously unknown potential

Faster and more comprehensive analyses

More expensive to harness

Privacy and data protection : who is allowed to use the data?

Swarm stpidity ? -> “Percieved connections” ?

Faster reactions by management

Improved customer service

DATA MINING AND ALGORITHMS

Data mining using automated algorithms

• Research

• Ad-hoc queries

• Forecasts

• Evaluation of decision-relevent

market in formation

• Market reports

• Analyses

• More accurate forecasts / predictions

• Identification of complex relationships

• Market reports

• Analyses

• Working with probabilities

• Automatic statistician

CHANGES IN ANALYSTS’ WORK BETWEEN NOW & 2025

POTENTIAL OF BIG DATA IN THE REAL ESTATE SECTOR

HOW STRONGLY WILL IT IMPACT DIFFERENTREAL-ESTATE FIELDS & BUSINESS DIVISIONS

IMPACT OF BIG DATA ON RESEARCH/MARKET ANALYSES

REAL ESTATE INDUSTRY SECTOR THAT WILL UNDERGO THE GREATEST CHANGES DUE TO BIG DATA

THE OVERALL IMPACT BIG DATA CAN HAVE ON THE REAL ESTATE SECTOR

WILL MORE DATA LEAD TO MORE STABILITY ON MARKETS ?

TYPES OF BIG DATA ANALYTICS ENTERPRISES ARE USING

WHY SHOULD INVESTORS CARE ABOUT REAL ESTATE ANALYTICS?

WHAT DOES PREDICTIVE DATA TELL A REAL ESTATE INVESTOR?

KEY BIG DATA APPLICATIONS FOR BANKS, REAL ESTATE INVESTMENT TRUSTS (REITS) & BUYERS

BIG DATA’S PROS & CONS

100 exabytes 1 zettabyte

HOW

BIG DATA ANALYTICS IS CHANGING THE

REAL ESTATE INDUSTRY

HOW

BIG DATA ANALYTICS IS CHANGING THE

REAL ESTATE INDUSTRY