It is indeed exciting to think that the buying and selling market or rather the commercial real estate market is getting more and more digitised. Don’t you think that digitization in the real estate market sounds more like a contradiction? Real estate or the property market is the quintessence of the conventional world as it consists of wood, stone or concrete tangible things. It comprises of the real world and never the virtual world as is seen in other industries. However, real estate possesses 2 features which can benefit from digitization and they are that it involves complicated processes and also valuable investment. It is through digital technologies such as online property auctions, that you can optimise processes and also considerably increase in value. If you wish to succeed in the market, the key role of information should be understood.
The transformation of focus from investment to information
It has been predicted that a hundred years from now, the entire real estate business will most probably be ensuring that people have a place to live and work. This definitely calls for mortars and bricks and only clicks won’t do as there needs to be enough movement of money within the financial sector. However, here are some points to be noticed.
- Within the real estate industry, you need to communicate and manage information as effectively as possible. Such processes can never be digitised entirely as there are several sub-processed which needs to be improved as well. The real estate industry will try to utilise this potential and its perspectives of growth which are otherwise limited.
- Information is the key to making good decisions and the demand for information will gradually rise as more and more companies adopt a professional approach. The creditworthiness of tenants is assessed during the beginning of the contract and it’s not supervised for the other tenants. This situation is definitely going to change soon.
- Within buildings, information is also gaining significance. Smart Metering, Smart Home have already started promising much more than what they could deliver but this would indeed be alarming if such technologies didn’t establish themselves as standard thereby leading to further growth.
- Information with regards to real estate might not be as valuable as the real estate properties but when someone evaluates the information concerned with a piece of real estate, one will arrive at a significant sum like £10,000 for location and market analysis.
Abundance of data and technology
Big date will gradually play a big role as the owners and occupiers look to rationalise the real estate decisions. As all the major real estate firms start investing heavily, you will gradually see more and more comprehensive insights and more information as technology would allow the firms to combine real estate date with other points like sociographics and demographics.
Therefore, during the age of online property auctions and online comparison of mortgage loans, it is pretty clear that the focus is more on information than on investment. This is perhaps the changing face of the real estate industry.