The real estate industry has traditionally been slow to adopt new technology, including advanced data analytics and data management solutions. However, those who have embraced and invested in advanced real estate data management, are often able to quickly capitalize on newfound data insights; helping them in identifying new market opportunities while predicting and mitigating risk.
Modern real estate companies face a number of common challenges:
Harnessing key insights from data analytics can help real estate firms meet these challenges and position themselves for long-term success. When it comes to balancing the many opportunities and potential risks associated with the real estate industry, companies are wise to invest in the proper real estate data management tools and professional services to quickly and effectively take advantage of data insights.
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Real estate data analytics help to assess and manage risks associated with real estate development, investment, purchase, and management. Data management providers can integrate powerful tools like Tableau data visualizations to clearly depict trends and patterns that fuel predictive insights for decision-makers. By gaining an accurate picture of what could happen in the future, both in the short and long-term, real estate firms can improve the decision-making process, making data-driven decisions to reduce the risk of investments.
With the help of trend identification and predictive analytics, a company to become a first mover, taking advantage of new opportunities that are not yet on the competition’s radar. For example, McKinsey¹ found that non-traditional variables hold nearly 60% of the predictive power of real estate values, a greater impact than traditional considerations such as market performance, vacancy rate, or property features.
Real estate data management can also be applied to customer/tenant engagement. Data analytics from customer interactions, needs, and preferences can be applied to make recommendations, respond to requests, and personalize communications for improved tenant engagement. If you are involved in rental properties, analytics can also be used in the tenant selection process, helping a manager to make the best determination of a tenant’s long-term viability.
With advanced analytics, a real estate firm can also identify trends among customers, and use these insights to improve the targeting of marketing campaigns, increasing effectiveness and ROI. Additionally, analytics can be applied to identify potential new markets and audiences to expand the reach and drive growth.
Real estate data management can also improve internal processes and operations for effective property management. Real estate firms can streamline workflows, reduce project lead time, improve reporting, and break down data silos when data is properly managed and visualized for improved visibility.
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Implementing a real estate data management project from scratch can be a long-term, resource-intensive, complicated project requiring significant technological expertise. Selecting a data management provider to assist with the cloud migrations, data consolidations, data visualizations, and other reporting needs can significantly reduce the amount of time and cost of bringing efforts in-house.
DataBrains is a certified Tableau partner with specialized expertise in helping real estate companies modernize their approach to data management and reporting to quickly meet business goals.
Learn about our data management services or connect with our experts to begin tackling your data pain points and driving strategic growth for your business.
Sources:
[1] https://www.mckinsey.com/industries/capital-projects-and-infrastructure/our-insights/getting-ahead-of-the-market-how-big-data-is-transforming-real-estate